Alternatives to Premium Bonds: What other savings prize draws are there?

Premium Bonds are one of the nation’s much-loved savings products, but the equivalent rates and prizes on offer have begun to dwindle.

Offered by National Savings and Investments (NS&I), the products give savers the hope of winning cash prizes every month, including two jackpot winners who will receive a visit from ‘Agent Million’.

Premium Bonds prizes are tax-efficient, as any winnings you receive are not taxed by HMRC.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

However, the monthly prize draws have become less attractive in recent months. In August 2025, the prize fund rate fell to just 3.6%, down from 3.8% in July and 4.65% in September 2023.

This is due to Bank of England interest rate cuts and rules that mean the Treasury-backed lender can’t overly compete with the wider savings market.

Moreover, recent data obtained by AJ Bell found that around 63% of people who have Premium Bonds have never won a single prize from the monthly prize draws.

There are rivals to Premium Bonds that could be more lucrative.

A number of savings providers have launched prize draw products, with one prize draw offering the chance to win up to £10,000. So, how do they work?

How savings prize draws work 

Savings prize draws are easy-access or notice savings accounts, where the money you pay in allows you entry into a prize draw.

Each provider has slightly different eligibility rules, frequency and payout rates for their prize draws. Here are the top Premium Bonds alternatives on offer right now.

Alternatives to Premium Bonds

1. Chip Prize Savings Account – win up to £10,000

The prize pot: Chip is offering an attractive jackpot, with a total of £75,000 up for grabs. One saver will win the £10,000 jackpot, but 2,500 additional prizes of £10 are available, and 8,000 prizes of £5 can also be won.

How it works: With Chip’s Prize Savings Account you don’t earn any interest on your deposits, instead the money you deposit counts towards entries in a monthly prize draw. Any prize you win is added to your account.

The number of entries savers get is decided by their average balance over the calendar month. The average balance is calculated by dividing the daily balance by the number of days in the month. For September’s draw, Chip requires you to have an average balance of at least £100.

You do not have to pay tax on any prizes you may win.

Eligibility: All savers with the Prize Savings Account are automatically given a number of entries into the prize draw.

2. Family Building Society - win up to £50,000

The prize pot: Family Building Society has a Windfall Bond product that operates a monthly prize draw. New and existing customers can win a jackpot of £50,000 and there are also prizes of £100, £500, £1,000 and £10,000.

How it works: Newly opened Windfall Bonds qualify for the Monthly Free Prize Draw in the second calendar month after the bond has been opened. For example, a Windfall Bond opened in January would be entered into March’s Monthly Free Prize Draw.

The value of prizes to be paid each month is calculated by taking the total value of Windfall Bonds entered into the previous month’s free prize draw, multiplied by 1%/12 (one twelfth of one per cent).

Even if you don’t win a prize, the Windfall Bond pays a variable rate of interest linked to the Bank of England base rate minus 1%. Customers can access their money after 35 days’ notice, and you do not need to pay tax on your winnings.

Eligibility: You can open a Windfall Bond online, by post and by visiting Family Building Society’s Epsom branch. Each Windfall Bond requires a £10,000 deposit.

3. Credit Union PrizeSaver - win up to £5,000

The prize pot: The PrizeSaver draw is managed by the Association of British Credit Unions. It is a monthly prize draw with a top prize of £5,000, 10 prizes of £50 and 10 prizes of £20.

How it works: Eligible savers are automatically entered into a monthly draw. Every £1 held in a PrizeSaver account gets you one entry into the monthly prize draw, with up to 200 entries per month.

Eligibility: The draw is open to people saving in PrizeSaver accounts with their local credit union. You can only have one PrizeSaver account.

Note: Not all credit unions in the UK offer a PrizeSaver account. Find out which ones are participating on the PrizeSaver website.

4. TSB ‘Dream Fund’ prize draw – win up to £10,000

The prize pot: TSB’s ‘Dream Fund’ prize draw gives customers the opportunity to win one of five £10,000 jackpots, 50 prizes of £250, and 100 prizes of £100.

How it works: TSB customers are automatically entered into the prize draw when they deposit a total of £5,000 from an external bank account into their TSB current or savings accounts.

One prize draw entry is given to savers for each £5,000 transferred. For example, if a saver deposited £15,000 into their TSB account from an external account, this would give them three entries to the prize draw.

Partial deposits below £5,000 are not eligible for the draw, even if they total £5,000. For example, two £2,500 deposits would not be eligible for the prize draw.

The prize draw will run in September only, and prize winnings are tax-free.

Eligibility: Savers who transfer the £5,000 from an external bank account to their TSB current or savings account before 30 September will be eligible (excluding the TSB Monthly Saver Account and Matured Funds Account).

5. Coventry Building Society Sunny Day Saver – win up to £5,000

The prize pot: Coventry Building Society has launched a new issue of the Sunny Day Saver, offering ten prizes per month – one prize of £500, three of £200, and six of £50 each month to eligible customers.

If savers qualify for the monthly prize draw for 11 months, they will then also qualify for an additional one-off prize draw. This extra draw offers one prize of £5,000, one prize of £2,500, two prizes of £5000, and one prize of £250.

How it works: Customers can pay up to £150 each calendar month into the account, but the minimum amount needed to enter into the prize draw is £10.

If the minimum amount to enter the prize draw is reached, savers are automatically entered into it and have the chance to win one of the ten monthly prizes on offer.

Unlike Premium Bonds, the Sunny Day Saver also offers a variable interest rate of 4.3%, meaning your savings will grow regardless of whether you win a prize.

The savings account will be active for a 12-month term, after which it will automatically transfer to the statement-based version of Easy Access Saver (Maturity).

Prize winnings are tax free.

Eligibility: Customers can sign up for the account online, over the phone, in branch, or by post and must be aged 18 or over. To be eligible for the prize draw, all customers need to do is save a minimum of £10 in the account each month.