Coventry Building Society has launched a "competitive" 5% interest savings account that also offers the chance to win cash prizes. The mutual's new Sunny Day Saver 3 encourages people to save up to £150 each month towards life's memorable moments – their "sunny days".
How the account works
The account is available for a limited time during September and can be opened with as little as £1. Savers are not required to make deposits every month. However, for each month they add at least £10 to their account, they will qualify for that month's prize draw, giving them the chance to win one of 10 cash prizes of up to £500.
Customers who qualify for all 11 monthly prize draws will also be entered into an additional prize draw, with the chance to win up to £5,000. Each monthly prize draw includes one prize of £500, three prizes of £200 and six prizes of £50. The additional prize draw offers one prize of £5,000, one prize of £2,500, two prizes of £500 and one prize of £250.
What the experts say
Mike Mendham, head of savings at Coventry Building Society, said: "Having something to look forward to is often the best motivation to save. Whether it's a dream getaway, a family experience, or a personal milestone, our Sunny Day Saver helps people build their savings while keeping those exciting goals firmly in sight."
He added: "While it's important to prepare for life's rainy days, it's equally important to save for the moments that bring us joy. Unlike Premium Bonds, where returns depend entirely on winning a prize, Sunny Day Saver offers the reassurance of earning interest on your savings while also providing the chance to win monthly cash prizes."
Rachel Springall, finance expert at Moneyfacts, described the account as a "fantastic choice" for savers looking to put some money aside towards future goals. She said: "Not only does the account pay a competitive rate of interest, but savers could find the monthly prize draw enticing. As an added bonus, even if someone's savings habit temporarily changes, they can still be eligible for the draw, but diligence to commit and put away some cash every month will give them a chance to win an even bigger prize pot."
Account details and alternatives
At the end of the 12-month term, the account will automatically transfer to the mutual's Easy Access Saver. Up to £150 can be saved every month, amassing to £1,800 after 12 months. Based on this maximum deposit, the account is estimated to earn around £50 in interest.
Lloyds Bank and Santander currently top the list for regular savings accounts offering 8% interest AER. Lloyds' new Monthly Saver is available to current account holders, allowing customers to put between £25 and £250 per month away. Savers who put away the maximum amount each month can earn around £120 interest after 12 months, and withdrawals can be made without charge.
Santander's Regular Saver includes a 5% AER bonus for one year and allows customers to put up to £200 away per month. After 12 months, the interest reduces to 3.00% AER/gross. According to the bank's calculations, customers who deposit the maximum amount each month could build up £2,504 in year one, £5,018 in year two and £7,607 in year three, including interest. The Regular Saver is exclusively available to all Santander current account customers, and withdrawals are permitted.
