Lucky saver wins £5k in Treasury giveaway
23 Dec 2019
A postal worker from London is the first winner of a Treasury backed savings account draw called PrizeSaver
23 Dec 2019
The winner will receive a tax free cash prize of £5,000 as they opened a PrizeSaver account with credit union Commsave, one of the 15 credit unions to pilot a prize-linked savings account in collaboration with the Treasury.
The government launched the scheme at Budget 2018, saying it was ‘to help more people to save for the future, as well as raise awareness of credit unions’.
Since its launch in October, around 3,500 PrizeSaver accounts have been opened, giving each saver the chance to win up to £5,000 every month.
The account was inspired by the ‘Save to Win’ scheme in the US, which has helped credit union members save $200m (£153.6m) and has awarded $3.1m in prizes nationwide.
The US scheme prize is $5,000 (£3,800) with a winner announced every quarter.
The way the draw works is for every pound put into the savings account, savers will receive an entry into the prize draw, with a maximum of 200 chances to win per month.
For example, if a member saves £20 in their first month they will get 20 chances at winning. If they save an additional £30 in their second month they will then have 50 chances of winning.
As well as the top prize winner, another 20 savers have received runner-up prizes of £20 each, deposited directly into their savings accounts.
Fintech company incuto was appointed by the Treasury earlier this year to administer the pilot and work with credit unions to ensure they can operate the account.
Amanda Ivey, CEO of Commsave, said: ‘Commsave was excited to be chosen to take part in the Treasury pilot. Saving a small amount regularly helps build financial resilience and improves overall wellbeing.’
The Treasury will work with participating credit unions to evaluate the success of the PrizeSaver accounts throughout the pilot which runs until the end of March 2021, with an ambition to roll the account out more widely if successful.
Economic secretary to the Treasury, John Glen, said: ‘Saving for the future is something we all try to do, but we know it can sometimes be challenging.
‘I have no doubt our first winner is working tirelessly to make sure we get our cards and parcels in time for the holiday season, and hopefully this win will help them to have an extra happy Christmas this year.’