Nationwide Building Society launched a Mutual Reward Bond in late 2020 which can give existing members the chance to win up to £10,000. The product was launched on an 18-month fixed rate basis, with the number of prizes on offer depending on how much people have saved within the account, with the equivalent being 0.5 percent of total balances.
The prize draw took place on February 2 and according to Nationwide, this latest draw topped £3.36million.
This equated to 336 members winning £10,000 each after saving into the bond.
Since launching, more than 82,000 savers opened the 18-month bond, where members received one entry into the prize draw for every £100 saved, with members who saved the maximum £10,000 into the bond having at least a one-in-200 chance of winning.
Nationwide pointed out that these are “significantly better” odds than most popular prize draws available on the market.
READ MORE: Pensioner poverty fears as retirement savings ‘inadequate’ for many
This latest prize draw followed the success of both their ISA prize draw, which gave members the chance to win up to the full annual ISA allowance of £20,000, and the Start to Save account, which is aimed at getting people into the savings habit and which offers the chance to win £100 prizes for saving regularly.
Nationwide noted that with the base rate being so low, they’ve worked to find different ways to reward savers, as interest rates across the board struggle to get above one percent.
They highlighted that prize draws are simple to understand and are a means of rewarding loyal members.
Tom Riley, Nationwide’s Director of Banking & Savings, expanded on this: “The pandemic has shown us that you never know what is around the corner, so it is important to have a savings nest egg.
Martin Lewis issues warning on Lifetime ISA withdrawals [WARNING]
Martin Lewis urges savers to handle overdraft debt [EXPERT]
Rishi Sunak wants savings to be spent post lockdown – should you? [INSIGHT]
“As a mutual we are always looking at ways to reward our savers and encourage everyone to keep saving.
“Our prize draws are proving very popular at encouraging both new and established savers to put money away.
“We hope our latest winners enjoy their prize whether they choose to spend it or save it.”
It should be noted this account is for existing members of Nationwide, who became members before the launch date of the product(s).
The account will pay interest but the amount awarded will be fixed for the whole term.
Nationwide will provide holders with details of the interest rate that applies to their Mutual Reward Bond.
The interest will be paid annually at the end of the day before each anniversary of the account’s opening, at the end of the fixed term and on the date the account is closed.
Interest can be added to the account or it may be possible to pay the interest into other Nationwide accounts.
Do you have a money dilemma which you’d like a financial expert’s opinion on? If you would like to ask one of our finance experts a question, please email your query to email@example.com.