PrizeSaver Account Launched
Savers could now win up to £5,000 a month from a a new account with credit unions that was launched on the 17 October, International Credit Union Day. The Treasury has teamed up with 15 credit unions, including East Sussex Credit Union (eastsussexcu.org.uk), to launch the new PrizeSaver pilot account. The pilot gives people who open an account with participating credit unions the chance to win prizes every month and boost their savings.
Every month will see a top prize of £5,000 awarded to the winning saver, with a further 20 smaller prizes of £20 also awarded. Accounts are available now with the first wave of credit unions and the first prize-draws will take place in mid-December.
Credit unions are a type of member-owned cooperative, controlled and run by members. Most either serve specific local areas or certain professions like the police. Credit unions redistribute their profits to members through interest or dividends, or by investing in new services to meet the needs of their members.
The PrizeSaver pilot is designed to encourage new and existing credit union members to save, starting with as little as £1 a month. The pilot also aims to attract new members to credit unions, which play a vital role in financial inclusion, in particular as an alternative to high-cost lenders. The account was partly inspired by the ‘Save to Win’ scheme in the US, which has helped credit union members save $200 million and has awarded $3.1 million in prizes nationwide.
The pilot will run until the end of March 2021 and will help inform understanding of the PrizeSaver model. The Treasury will work with participating credit unions to evaluate the success of the PrizeSaver accounts throughout the pilot, with an ambition to roll the account out more widely if successful.
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