Best Premium Bond alternatives 2024: savings accounts that include entry into prize draw

These Premium Bond alternatives let you earn interest while also being in with the chance of winning a cash prize.

The main reason Premium Bonds are so popular is that they give savers the chance of bagging a life-changing sum of money.

But did you know there are a handful of savings accounts out there that offer the chance to win a prize, as well as any potential interest paid on your savings?

In essence, you get the best of both worlds.

And, with NS&I recently cutting the Premium Bond prize rate, you may well be looking for a new home for your money anyway.

If so, here are some Premium Bond alternatives for you to consider.

Manage all your savings accounts in one place with Raisin, the simple savings service

BestInvest - win £250

One of the newest rivals to Premium Bonds comes from BestInvest, which last year launched a monthly draw for regular savers.

Each month, one saver will be selected at random to win £250.

In order to qualify, you’ll need to set up a direct debit or standing order of at least £50 to pay into your ISA, self-invested personal pension (SIPP) or investment account before the 12th of the month.

The prize draw will run until July 2024, and savers can only win once. 

The Halifax Prize Draw - win up to £100,000

Launching in 2011, Halifax’s Prize Draw is one of the best-known of these ‘lottery-style’ accounts.

It offers three tiers of prizes: three winners get the top prize of £100,000, 100 winners bag a £1,000 prize, and 1,500 winners get a £100 prize.

To enter, you need to have more than £5,000 in a qualifying Halifax savings account for a whole month.

This could be in a single account, or across multiple accounts in your name, while most Bank of Scotland branded savings accounts also qualify.

Be aware, you won’t be automatically entered into the draw and will need to register through Halifax’s online banking, mobile app or in branch.

Savings in joint accounts are split equally and joint account holders will need to register separately.

Halifax will then get in touch if you win.

Chip - win up to £50,000

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

It’s a similar gimmick, in that no interest is paid on the money set aside in its Prize Savings Account.

There’s a top prize of £50,000, followed by a prize of £10,000, and 250 prizes of £10.

Your number of entries into the draw is determined by your daily balance, with every average balance of £10 equalling 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.

Santander – win up to £20,000

At the time of writing, Santander is offering those who invest with the bank the chance to win up to £20,000.

In order to qualify, you’ll need to invest at least £1,000 in a Stocks and Shares ISA or Investment Account before 31 May. Alternatively, you can set up a Direct Debit into one of these accounts.

If you meet this criteria, you’ll be automatically entered into the draw.

The amount you win will be equal to the amount you invest between 1 May and 31 May up to a maximum of £20,000 (ie the yearly annual ISA allowance).

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 20 runner-up prizes of upwards of £20.

Are any better than Premium Bonds?

If you're dreaming of winning a life-changing sum of money, then Premium Bonds are your best bet as they pay out two £1 million prizes a month, although you'll have to beat some pretty extraordinary odds to bag the winnings. 

In fact, you’ll 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 BestInvest draw or 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. 

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

Manage all your savings accounts in one place with Raisin, the simple savings service