Halifax tempts savers with special £1.35m raffle | Savings
The Halifax is ‘supersizing’ its draw for savers for just one month and will be giving away £1.35million in June, including 10 top prizes of £100,000.
This is the latest encouraging news for long-suffering savers, who are starting to see interest rates rise after the Bank of England’s recent base rate hike.
With interest rates rising, it’s perhaps no surprise that easy-access accounts are proving popular right now, as people aren’t locked in and can quickly move their money elsewhere if higher yields become available.
Halifax is one of Britain’s biggest savings providers and runs a monthly premium bond-style raffle for savers with at least £5,000 in stock.
The bank says that in June, “to celebrate its 10th anniversary” (although the raffle was actually launched in 2011), it will increase the prize fund.
Rather than the usual three top prizes of £100,000, there will be 10. In addition, just for June, 10 more prizes of £10,000 will be available. The usual draws of £1,000 (100 winners) and £100 (1,500 winners) will also take place.
The raffle is free, although customers must register – via the app, online or in-branch – and there are various requirements. You must hold a qualifying savings account (all Halifax and Bank of Scotland savings accounts are eligible except children’s accounts) for a full calendar month.
To stand a chance of winning in June, more than £5,000 must be in the account for the entire calendar month of May. You must also be 18 or over and live in England, Scotland or Wales.
A series of Bank of England interest rate hikes and competition between providers have combined to drive up savings rates across the board, said Rachel Springall on the financial data website Moneyfacts.
The average rate for easy access accounts rose from 0.25% in March to 0.33% this month, which may not seem like much, but it’s the biggest monthly increase in 15 years.
Meanwhile, the average rate on notice accounts rose to 0.67% and the average rate on one-year fixed-rate bonds hit 1.06% – the first time it has exceeded 1% since April 2020.
As interest rates rise, many savers may want to keep their money where they can quickly transfer it to a higher-paying account, Springall said.
One of the highest paying easy access accounts is the Saver account offered by US bank Chase, which pays 1.5%. However, to access it, you will first need to do business with Chase, which means holding or withdrawing one of its checking accounts. You don’t need a minimum deposit and you can have up to 10 Chase Saver accounts at a time.
Zopa has an app-only Smart Saver account that offers 1.2% for those looking for easy access to their money, while Tandem Bank has the Instant Access Saver that pays 1.1%.
For those willing to tie up their money for 12 months, the highest paying one-year fixed rate bonds are, at the time of writing, paying up to 1.96%. PCF Bank and Al Rayan Bank were among the providers offering this rate.