Earn 2.5% interest on your savings - if Man Utd win the Premier League
The new ‘Champions Bond’ is a one-year savings account offered by Virgin Money, after the bank announced earlier this week that it has partnered with the Red Devils.
Even if the reds don’t reach the top of the table the account will pay 1.25% AER, which is better than you’ll get on most one-year savings accounts.
However, the back-up rate can still be beaten over a year.Charter Savings Bank currently pays 1.79% AER on balances between £1,000 and £250,000. It’s available online only.
- See our Top savings guide for a roundup of the week’s best rates.
If you want to take a punt on the Champions Bond, it’s available via virginmoney.com, and can be opened with £1. It’s a fixed rate account, so money will be locked away until the account matures.
People who sign up will also qualify for a reward scheme, which has a monthly prize draw including match day tickets and signed replica shirts. Account holders get ten raffle tickets in the monthly draw, plus one extra ticket for every £50 in their account.
As with Premium Bonds, the chances of winning improves the more customers save.
Virgin Money has also launched an instant-access "Red Devils" instant access for Manchester united fans, paying 1.05% interest.
A form of National Savings Certificate, premium bonds are effectively gilt-edged securities: you loan your money to the government and, in return, it pays you for the privilege with a guarantee it will return your capital at a specified date. Where premium bonds differ is that the interest payments (currently 1.5%) are pooled and paid out as prize money and you can get your cash back within a fortnight, with no risk. Launched by Chancellor of the Exchequer Harold Macmillan in his 1956 Budget, every single £1 unit has the same chance of winning and in May 2011, 1,772,482 winners (from a total draw of 42,539,589,993 eligible bond numbers) shared £53,174,500. The odds of winning are 24,000 to 1 and the maximum holding is £30,000 per person but it remains the only punt in which you can perpetually recycle your stake money.
Where APR is the rate charged for money borrowed, Annual equivalent rate is how interest is calculated on money saved. The AER takes into account the frequency the product pays interest and how that interest compounds. So, if two savings products pay the same rate of interest but one pays interest more frequently, that account compounds the interest more frequently and will have a higher AER.