Best Premium Bond alternatives 2025: savings that include entry into a prize draw

As the most popular and long-standing Premium Bond alternative is axed, we look at the various accounts that still offer both interest and the chance to win prizes.

If you're a fan of a lottery-style savings account that pays out prizes, chances are you already hold some Premium Bonds.

But did you know there are many alternatives out there, with some actually offering a guaranteed inflation-beating savings rate on top of the chance of winning a monthly prize?

Sadly, the most popular Premium Bond alternative out there has just been scrapped, in what is a big blow to savers.

For the last 14 years, the Halifax Savers Prize draw has offered people the chance to earn interest and be in with a chance of winning up to £100,000.

But this month's draw was the final one before it was closed for good.

While it's a big shame to lose such a popular option, there are still a number of compelling Premium Bond alternatives out there, which we'll run through in this article, starting with one that has just launched this week...

The Coventry Building Society Draw - win up to £5,000

Coventry Building Society is offering those who regularly put money away the chance to earn an inflation-beating interest rate on their savings, plus the chance to win £5,000.

The Sunny Day Saver is a regular savings account that pays 4.3% and lets you deposit up to £150 each month. 

With the account, there are 10 cash prizes to be won each month, and savers could potentially win £5,000 if they put money in the account for 11 months in a row.

Every month you deposit at least £10, you will be entered into a prize draw to win one of 10 cash prizes of up to £500 (one prize of £500, three prizes of £200 and six prizes of £50).

If you consistently save each month for 11 months, then you'll be entered into a bonus prize draw to win up to £5,000 (one prize of £5,000, one prize of £2,500, two prizes of £500 and one prize of £250).

You'll need to open the account before end September 2025 to be eligible for the prize draw.

TSB Dream Fund Prize Draw - win up to £10,000

You could be in with a chance of winning £10,000 if you save with TSB, provided you have a current account with the bank or are willing to open one.

You then need to open a savings account before end September 2025 and deposit at least £5,000 from another bank and keep your money in there until at least 1 October 2025 to qualify.

The bank will hand out five prizes of £10,000, 50 prizes worth £250 and 100 worth £100.

Note that each full £5,000 you deposit will count as one entry in the draw, meaning the bigger your deposit, the more chances you'll have. 

The bank does currently offer savings accounts paying up to 3.9%, meaning it's possible to ensure your money beats inflation (it's currently 3.8%) while also standing the chance of winning a handy prize.

PrizeSaver - win up to £5,000

Finally, there’s the PrizeSaver scheme, which is run by a host of credit unions across the UK. 

Every £1 saved with participating credit unions is worth an entry into the monthly draw, up to a maximum of 200 entries. 

There is then a top prize of £5,000 in the draw, with 10 runner-up prizes of £50 and 10 prizes of £20.

Chip - win up to £75,000

Chip is a savings and investment app, which runs its own version of Premium Bonds.

Unlike most of the other accounts on the list, no interest is paid on the money set aside in its Prize Savings Account so it works just like Premium Bonds (except it isn't tax-free).

There’s a top prize of £75,000, followed by a prize of £10,000 and 250 additional prizes to win each month.

Your average balance over the month determines your number of entries, with every £10 you hold counting as one entry. 

To qualify, you’ll need to hold at least £100 in the account and Chip will contact you directly if you win a prize.

Are these any better than Premium Bonds?

If you're dreaming of winning a life-changing sum of money, then Premium Bonds are your best bet, although you'll have to beat some pretty extraordinary odds to bag the top prize.

In fact, you may well have a better chance with some of the other draws mentioned in this piece.

If you're new to saving and can only set a small amount aside each month, then deals such as the PrizeSaver draws may appeal.

But if you have a significant sum of money to stash away, Premium Bonds do become the more attractive option as your overall likelihood of winning increases with the size of your pot. 

And, of course, Premium Bonds have the added attraction of being tax-free, unlike the accounts mentioned above.

Ultimately, the best prize-based savings account depends very much on your financial situation.

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