Martin Lewis explains the 1p savings challenge
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Nationwide Building Society is offering savers the possibility of a reward for frequently building up a savings pot with its competitive regular saver. The Start to Save (Issue 2) account affords savers a variable five percent AER and the chance to win £250 up to three times if certain rules are followed.
Regular savings accounts work well for people looking to start saving, as these accounts typically award some of the highest interest rates on the market and the terms generally encourage savers to pay money into the accounts monthly with limited withdrawals.
However, the Nationwide BS Start to Save (Issue 2), as mentioned, offers the benefit of an additional reward to be nabbed through three prize draws.
To be entered into a prize draw, savers will need to increase their account balance by at least £25 (but by no more than £50) in each of the six calendar months leading up to the month of the prize draw.
For example, to qualify for the prize draw on February 21, 2023, the total balance in the account needs to increase by at least £25 in August, September, October, November, December and January.
However, the building society notes there are additional conditions to meet to be in with a chance of winning.
A statement from Nationwide reads: “If you increase your balance by more than £50 in a month running up to a prize draw, you will not be entered for that prize draw.”
It continued: “If you take money out of your account during a calendar month, then you may need to pay some or all of it back in. For example, if your account balance is £100 at the beginning of the calendar month and you then take out £25, you’ll need to pay in at least £50 [back in] to increase the balance to at least £125 by the end of the calendar month.”
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It also notes that interest and any prize draw winnings added to the account will not count towards the minimum required £25 balance increase.
Prize draws will take place on February 21, 2023, August 22, 2023, and February 20, 2024.
Winners are selected at random from all accounts that qualify for the prize draw and each winner will receive £250.
The prize fund is equal to 2.5 percent of the total increase in the balances of all accounts that qualify for the draw across the size months leading up to the draw, and the number of winners will depend on how many £250 prizes can be made up from this.
According to Nationwide BS, the chance of winning is between 1 in 34 and 1 in 67, depending on how big the prize fund is.
Savers who win will be informed by email or post and the £250 will be paid into the account within 30 days of the draw.
To open the account, savers must be 16 or over; be a resident of the United Kingdom; be registered with Nationwide BS’ interest bank and have a valid email address and be able to open and manage the account online.
Savers can only have one of each Issue of the Start to Save product at any time. This applies whether they hold the account their your sole name or jointly with someone else.
Commenting on the account, Rachel Springall, finance expert at Moneyfacts told Express.co.uk: “Those savers looking to ignite their savings habit may wish to open a fixed term regular savings account where they can make monthly payments towards a specific goal.
“The Start to Save Issue 2 from Nationwide Building Society may be an enticing choice as not only will savers earn a competitive variable rate, but they can also take part in the savings prize draw.”
Ms Springall continued: “The entry into the prize draw is subject to their monthly deposits to its important they check all the terms and conditions before they open an account.”
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