Nationwide, the UK’s largest building society, has launched a £1 million monthly prize draw for its members. Here is everything you need to know about this prize draw and how to enter.
How will the Nationwide prize draw work?
According to Nationwide, there will be 8,008 prizes to be worn every month, and 8,000 of these will be worth £100 each. Five winners will get £10,000 and two will get £25,000. One lucky winner will pocket the ultimate jackpot prize of £100,000.
The new offering from Nationwide will officially commence in September 2021 and will continue for at least 12 months.
This is not the first draw that Nationwide has run. In 2020, it introduced an ISA prize draw in which winners stood a chance of winning the full annual ISA allowance of £20,000.
Who is eligible for the Nationwide prize draw?
The newly announced draw will be open to all Nationwide members, unlike previous draws which have mainly targeted savers. A member is defined as anyone aged 18 and over and who has at least one Nationwide mortgage, savings account or current account.
According to Nationwide, “Everyone will have an equal chance of winning a prize as each of the Society’s eligible members will get one entry per month – resonating with Nationwide’s ethos that all members are valued equally, regardless of how many products they have.”
That means that everyone has the same chance of winning irrespective of the amount in their account.
The draw will be open to members in England, Scotland and Wales.
How do you enter?
If you are a Nationwide member, you don’t actually need to do anything to enter.
All members who meet the entry criteria as of the last working day of every month will be automatically entered into the following month’s prize draw. If you are not currently a Nationwide member, you can open a savings account for as little as £1 to be entered into the draw.
The draw itself will take place on the second Tuesday of every month. The first of these prize draws will be on 14 September. If you do not want to be included in the draw, you can opt out through the company’s website.
What are the odds of winning?
Currently, there are around 14.2 million Nationwide members who are eligible for the first prize draw. This brings the odds of winning a prize to one in 1,750.
Of course, these odds will change month on month depending on the number of members eligible for entry.
How do you get the money if you win?
Payment for prizes will be made either through a transfer to your Nationwide current or savings account or by cheque.
Are there other similar prize draws out there?
Nationwide’s jackpot of £100,000 matches that of another similar prize draw by one of its main competitors, Halifax, which is part of the Lloyds Banking Group.
However, the two prize draws are dwarfed by the £1 million jackpot currently offered by Premium Bonds, run by National Savings and Investments.
Why should you still shop around first?
Households savings in the UK have increased significantly during lockdown. However, savings interest rates have remained historically low. As a result, many banks and building societies are turning to prize draws to pique savers’ interest.
That said, even if a lender is offering a prize draw, it’s a good idea to shop around first. You can compare the different deals on the market, including their terms and conditions, before committing to a lender.
After all, there is no guarantee of winning a prize. You could miss out on a potentially more attractive interest rate by choosing to put your money into an account just because it is linked to a prize draw.
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The post How to enter Nationwide’s new monthly £1m prize draw appeared first on The Motley Fool UK.