The PrizeSaver pilot is designed to encourage new and existing credit union members to save, starting with as little as £1 a month. The pilot also aims to attract new members to credit unions, who play a vital role in financial inclusion in particular as an alternative to high-cost lenders.
The account is partly inspired by the ‘Save to Win’ scheme in the US, which has helped credit union members save $200 million and has awarded $3.1 million in prizes nationwide.
The pilot will run until the end of March 2021 and will help inform understanding of the PrizeSaver model. The Treasury will work with participating credit unions to evaluate the success of the PrizeSaver accounts throughout the pilot, with an ambition to roll the account out more widely if successful.
For every pound put into the savings account, savers will receive an entry into the prize draw, with a maximum of 200 chances to win per month. For example, if a member saves £20 in their first month, they will get 20 chances at winning. If they save an additional £30 in their second month, they will then have 50 chances of winning.