In a further attempt to incentivise savings, the UK government has launched the PrizeSaver account.

Here’s what the Treasury press release had to say:

PrizeSaver Launch

Treasury launches pilot of new PrizeSaver account on International Credit Union Day.

• Savers who put away as little as £1 with participating credit unions have the chance to win up to £5,000 a month.
• The account is part of work to raise awareness of credit unions and encourage greater savings for the future.

Celebrating International Credit Union Day

To mark International Credit Union Day, the Treasury has teamed up with 15 credit unions across Britain to launch the new incentive. The pilot will give people who open an account with participating credit unions the chance to win prizes every month and boost their savings.

Over 20 Cash Prizes To Be Won

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 to open now. The first wave of credit unions and the first prize-draws will take place in mid-December.

The pilot, announced at last year’s Budget, is designed to help improve people’s financial resilience by encouraging greater saving for the future. Also, to raise awareness of credit unions and the services they offer.

What Are Credit Unions?

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.

If you are saving with a credit union, you may have to notify HMRC about these savings if you are a taxpayer. Contact our team today to find out more. 

US Version Awarded Millions Already

The account is partly inspired by the ‘Save to Win’ scheme in the US that has helped credit union members save $200 million. And, has awarded $3.1 million in prizes nationwide.

Pilot End Date Set

The pilot will run until the end of March 2021 and will help inform the understanding of the PrizeSaver model. The Treasury will work with participating credit unions to evaluate the success of the PrizeSaver accounts throughout the pilot. Their ambition is to roll the account out more widely if successful.