Savers could win £1 million with Halifax

Is the chance of winning £1 million enough of a pull to get you to sign up to a new savings account from Halifax? Here we look into the pros and cons of this kind of sweetener.

Putting your cash into a savings account where it can earn a decent rate of interest is always a smart move. And if you've also got the chance of winning anything from £100 to £250,000, it seems even more attractive.

This is exactly what Halifax is offering with its prize draw for December and, unlike the national lottery, this one is open to all those signed up to one of its savings accounts, completely risk free.

The deal

Unfortunately you can’t actually get the whole £1 million in one go, but this does mean there’s a greater chance of more people winning smaller pots. The offer is valid for the bank's December draw – so just in time for Christmas – and open to anyone with a savings account with a balance of at least £5,000.

There are three prizes of £250,000, ten of £5,000, 100 of £1,000, and 1,000 of £100 up for grabs to those lucky savers who are picked out of the prize draw.

The Savers Prize Draw was first held in December 2011 and has taken place on a monthly basis ever since. It’s all based around the principle of rewarding customers for loyalty, in a similar way to Nationwide’s loyalty bond and Santander’s five-year mortgage which are both only available to existing customers.

Prizes are awarded in addition to the interest earned on the cash. However, what’s different this time is the amount on offer, as normally the prizes only add up to £500,000.

How can I enter?

To be eligible for the prize draw you need to have a qualifying account with Halifax, which is basically any of its saving accounts apart from a children’s account, the Christmas Saver, a non-personal account (such as for a business) or any accounts opened after the draw begins.

You also need to make sure you have the qualifying balance of at least £5,000 in your savings account to be entered for the prize draw. This can be in one account, or across several, and you need to maintain the balance for the whole of the month before the draw takes place.

If you want to take part, you need to first register either on the website, in a branch or by calling 0844 571 5076.

What are my chances of winning?

It’s obviously all a matter of luck with this one but Halifax has done some research to find out how much luck you’re entitled to based on where you live in the country. Although it’s not that scientific, and data on the number of Halifax customers living in each of these areas might have given a more accurate picture, the research makes for some quite interesting reading.

People living in Hyde in Greater Manchester for example are the most likely to win the draw while those in Clitheroe, Lancashire are the least likely.

Top ten luckiest and unluckiest towns for winning

 *source: Halifax May 2012

Are the accounts any good?

I wouldn’t say no to winning £250,000 and even £500 would be a nice boost to my bank account. The fact that you don’t have to do anything other than having a savings account with Halifax makes the whole thing very appealing too.

The prize draw is valid with most of Halifax’s savings accounts and several have some rather competitive rates such as the 4% five-year ISA which you can open with a minimum of £500. This is a good account - but you need to check the whole of the market before making a decision.

A quick scan of the comparison tables shows several accounts with higher interest rates, such as a similar five-year deal from the State Bank of India which pays out 4.50%. As the chances are pretty slim that you’ll win the Halifax prize draw, going for an account with a higher interest rate could be a better move.

When it comes to instant-access however, Halifax’s online saver at 2.80% is one of the better accounts around – although there’s a bonus for the first 12 months. This means if you choose the account, you’ll be getting one of the best interest rates available and you’ll be entered into the draw (providing you’re eligible).

What do you think about the prize draw? Would it encourage you to open an account with Halifax? Leave your thoughts in the comments box below.

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