Halifax woos savers with Premium Bond rival

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The Independent Online

The Halifax is to offer savers the chance to win monthly cash prizes of up to £100,000 in a direct attack on Premium Bonds. Halifax – part of Lloyds Banking Group – will give away half a million each month from December with the promotion lasting for at least 12 months.

Simon Kenyon, director of savings at the bank, denied the move is a gimmick. "We're trying to challenge the savings market," he said. While the promotion is new to the UK, it is common practice in the US and Australia.

To qualify customers must have £5,000 in a Halifax savings account and must register in the month before the first draw. Three £100,000 prizes will be handed out, plus 1,100 smaller prizes of £1,000 and £100.

Halifax refused to divulge how many people may be eligible for the draw so it is impossible to work out the odds of winning. But it is worth noting the chances of one of the 23 million Premium Bondholders winning one of the 1.7 million prizes handed out each month is 24,000-1.

Will the Halifax's gambit win it new customers? With savings rates so low, the tactic may be a winner.