MT Week - New savings accounts with prize draws

Are you feeling lucky? Because January has brought with it some new prize draws linked to savings accounts.

There’s no spending involved, or effort really - all you have to do is put some money into the bank and you could win as much as £1million in cash.

For once, it’s not too good to be true. Freakonomics Radio actually did a really interesting podcast on how it all works. It’s in a US context, but was inspired by NS&I’s Premium Bonds.

Given that interest rates are still so low - certainly no savings products are beating inflation right now - an account with a bonus prize draw might just sweeten the deal for savers.

They also have the benefit of being fairly accessible - unlike investment products, which are prone to fluctuation - which is ideal for an emergency fund.

One thing to note: the chances of winning are pretty small so make sure you shop around for the best interest rates as well.