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

As both Lloyds and First Direct announce new prize draws for customers, we look at the best ‘lottery-style’ accounts on the market.

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

But did you know there are a handful of savings and current 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 analysts warning the Premium Bond prize rate could soon be cut, 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.

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Lloyds - win up to £10,000 or a trip to New York

As part of a limited-time offer, Lloyds has launched a prize draw to mark the 10-year anniversary of its Club Lloyds current accounts.

This includes the bank’s Club Lloyds account, which is free if you pay in £2,000 or more per month, as well as its fee-paying Silver and Platinum accounts.

There are 60 prizes available, including 10 cash payments of £10,000 and 10 trips to New York.

As part of the trip, winners receive return flights from London to New York and three night’s accommodation in Manhattan.

Prizes are drawn in October, and you’ll need to hold a Club Lloyds account on 30 September to qualify.

Existing members are automatically entered into the draw, although you can opt out if you wish to do so.

The Club Lloyds account pays up to 3% interest depending on your balance, plus you'll get access to the Lloyds Monthly Saver account, which pays a rate of 6.25% and allows you to deposit up to £400 each month.

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

Launched back 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 per month, 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 £75,000

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

To qualify, you’ll need to hold at least £100 in the account and Chip will contact you directly if you win a 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 20 runner-up prizes of upwards of £20.

First Direct - win up to £3,500

To celebrate its 35th anniversary, First Direct is offering existing current account customers the chance to win up to £3,500.

As well as 10 prizes of £3,500 per draw, the bank is offering 4,235 prizes of £100 and 235 prizes of £35.

There will be one draw per month in September, October and November.

There is a catch, however, as the draw is only open to existing customers.

To qualify, you'll need to have held a 1st Account on or before 1 July, 2024.

Existing customers will need to opt in via email or through the banner in the bank's app.

Opt-in deadlines are 30 September, 31 October and 30 November.

Prizes will be paid directly into winners' accounts.

While the bank's current account doesn't pay interest, you will get access to the bank's Regular Saver account, which pays 7% on deposits of between £25 and £300  per month in the first 12 months of account ownership.

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, although you'll have to beat some pretty extraordinary odds to bag the top prize.

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 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.

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