Halifax prize draw and premium bonds - are they worth it?

Premium bond

Moneywise questions the worth of saving into premium bonds compared to savings accounts and asks whether Halifax's prize draw scheme has any value. 

Premium bonds

With National Savings & Investments (NS&I) premium bonds, savers forego interest in the hope of scooping a monthly cash prize of up to £1 million.

Those with the maximum bond holding of £30,000 can expect to win relatively frequently, presuming average luck. But most are only small prizes.

On average, premium bond savers receive less in prize money than they would get in interest if their money were held in a best-buy account. For example, based on a rate of 3.25% you would earn £975 in interest for a £30,000 deposit over a year.

Halifax prize draw

Halifax offers a savings deal with similarities to premium bonds.

New and existing savers at Halifax (except for those living in Northern Ireland) who have more than £5,000 on deposit can opt into a monthly prize draw to win amounts up to and including £100,000, with a special £250,000 draw in December.

The best-paying eligible account is Halifax's 2.5% five-year fixed-rate ISA. If savers are happy with the rate being offered by Halifax on their savings then the chance of winning in the draw will be an added incentive to keep £5,000 in the account.

Your Comments

On the subject of premium bonds I would say that given the very low interest rates available on instant access deposits  they compare quite favourably.If you get signed up for  online access to your bonds with NSI the withdrawal time on casing in bonds is only 2 days into your nominated current bank account.I can personally vouch for this.All winnings are tax free & there is the remote chance of a big win.I have no other deposits other than fixed rate fixed term cash ISAs... all other deposit rates are a joke if you pay tax at basic rate or higher rate.