Nationwide is launching an ISA prize draw this Friday (6 March) that gives savers the chance to win up to £20,000 – the current annual ISA allowance. At the same time Britain’s biggest building society is raising the rate of its headline, on-sale tax-free savings account - the Triple Access Online ISA - which jumps from 0.90% to 1.21%.
This new approach is aimed at encouraging Nationwide’s members to save more in their ISAs before and after the new tax year arrives. The £500,000 giveaway will see savers getting ten chances to win the top prize of £20,000, with a further ten prizes of £10,000 and 40 prizes of £5,000.
It follows the launch of its Start to Save account and prize draw last month, which is aimed at getting people into the savings habit and offers the chance to win £100 prizes for saving regularly. Together, Nationwide hopes that these initiatives will give both new and established savers every incentive to put money away.
Entries into the ISA prize draw open on Friday 6 March and close on Thursday 30 April, ensuring members have the option of either using this year’s or next year’s tax-free allowance to enter. The draw is open to new and existing members and to qualify and ISA balances only need to be increased by £100 or more by the time the prize draw entry period closes at the end of April.
Currently, Nationwide has around four million ISA savers who could potentially enter the prize draw. Members who meet the eligibility criteria are automatically entered. The draw, which is open to members in England, Scotland and Wales1, will take place on 21 May 2020 and winners will be selected at random. Winners will have the prize paid directly into an existing Nationwide account or by cheque, depending on their choice.
Members can qualify either by opening a new account or by topping up an existing account. This can be done with new ISA subscriptions or by transferring existing ISA balances from other providers. Unlike many other providers, the Society also allows savers to split their current year’s ISA allowance across its product range, so savers can split the balance increase between more than one ISA and still qualify.
Triple Access Online ISA (Issue 4):
For those members looking to open a new ISA account, the Society is launching, also on Friday 6 March, a new issue of its one-year Triple Access Online ISA paying 1.21% AER/tax-free (variable) for 12 months.2
The instant access account allows three withdrawals in each 12-month period following account opening. Subsequent withdrawals will lower the interest rate to 0.10% for the remainder of that period.
The account can be opened and managed online via the website, Internet Bank and Mobile Banking App. It has a minimum operating balance of £1 and accepts transfers in, so savers can transfer existing ISA balances from other providers.
The current version of the Triple Access Online ISA will be withdrawn from sale on 5 March 2020.
Tom Riley, Nationwide’s Director of Savings, said: “At the start and end of a tax-year we see a spike in savers rushing to make the most of their tax-free ISA allowance. Our new prize draw rewards these savers by giving them the chance to win £20,000 - the equivalent of a full year’s ISA allowance.
“The prize draw is likely to be popular with savers as they have the chance of winning a cash prize, while at the same time earning a competitive rate of interest on their savings. No matter how much people put away, everyone has the same chance of winning – a concept that is true to our mutual roots.
“Despite only launching a couple of weeks ago, our Start to Save account and accompanying prize draw is already proving popular, with around 20,0003 account openings, and showing that prize draws are an effective way of to promote, and reward, positive financial behaviours like saving.
“As a member-owned organisation, we see prize draws as an extra bonus for Nationwide members and are using them to reward members and their savings behaviour and providing an additional benefit of membership. The good news for our savers is that we are increasing the rates on our Triple Access Online at the same time as launching this new prize draw.”
