WITH one lucky British lottery player scooping the £170million EuroMillions jackpot last week, you may be tempted to buy a ticket.
But there are other ways to win cash without the risk of losing money – with increasingly popular prize-linked savings accounts. Today, Mr Money looks at the options if you do not want to fork out that £2.50 on a EuroMillions flutter.
PRIZE SAVER ACCOUNT
What? Launched this week by the Treasury and 15 credit unions dotted around the UK. The main aim is to get low-income earners to save.
Put in as little as £1 to win up to £5,000 a month. Every pound saved means one entry in the draw — up to a limit of 200 per person. The first draws start in December.
Credit unions offer savings accounts and cheap loans to neighbourhoods or people working in certain industries.
Prizes? £5,000 per month, with a further 20 smaller prizes of £20.
Interest? Varies for each union. Commsave Credit Union for postal workers will pay the same dividend on the Prize Saver as it does on all other accounts, which last year was 2.25 per cent.
Bradford and District has the same policy and last year paid 0.5 per cent. Others will not pay any extra on the Prize Saver balances.
Odds? Depends on how many people go for it.
What? Run by the Government’s bank NS&I, they are the UK’s biggest savings product. Do not offer interest but enter you into a monthly draw, with prizes from £25 to £1million. Pay as little as £25 but the more you save, the greater the chance.
Prizes? More than 3million prizes of £25 a month, plus further amounts of £50, £100, £500, £1,000, £5,000, £10,000, £25,000, £50,000, £100,000 and £1million. Two take the top prize.
Interest? No interest rate as such but a “prize rate” of 1.4 per cent. For every £100 paid in, typically £1.40 a year is paid out.
Odds? In October’s draw, odds of a £1 Bond winning a £25 prize were 24,950 to one and for the £1million jackpot, one in 42billion.
What? Halifax savers with deposits of at least £5,000 get the chance to win up to £100,000. You must register. The drawback is there are much better savings rates at rivals.
Prizes? Three top prizes of £100,000 each, 100 of £1,000, and 1,500 of £100.
Interest? Halifax Everyday Saver pays 0.2 per cent and its Isa Saver Fixed, which locks cash away for two years, is 0.55. Paltry compared with the top-paying easy-access account, at 1.46 per cent, and best two-year fixed- rate bond, at 1.9 per cent.
Odds? With about 2million registered and 1,603 monthly prizes, there is a one-in-1,248 chance of a win, increasing to one-in- 666,667 for £100,000.
What? The Family Building Society’s Windfall Bond has interest at Bank of England’s base rate (0.75 per cent) and enters you into a monthly prize draw to win up to £50,000. Save £10,000 for one bond.
Prizes? Ten £1,000 prizes, two £10,000 and a £50,000.
Interest? 0.75 per cent.
Odds? Chance of one bond winning at least once in a year is around one in 64 — five times better than Premium Bonds.