Save and win saving accounts are a type of savings account that allows the customer to enter a prize draw according to how much money they deposit each month. They were designed as an incentive to help people save because they are setup to usually require a minimum balance each month in order to enter the draw.
Save and win savings accounts have been used overseas for a while now. For instance, Michigan Credit Union League in the United States offers a savings account with a cash prize. Closer to home, Westpac in New Zealand also offers a save and win savings account where the customer earns 0.25 percent interest, no monthly fees and free deposits. They also have a chance to enter the save and win draws but in order to be eligible they must deposit at least $10 during the prize draw month and have an average monthly balance of at least $100. For every $100 of their balance they receive an entry into the draw.
Financial institutions in Australia have also caught on to save and win savings accounts. For instance the Bank of Queensland (BOQ) announced that their save to win deposit account from mid November 2010. Eligible customers can take part in $30,000 if cash prizes each month with a major prize draw of $20,000, but they must maintain an account balance of $250 each month. Every dollar over $250 that they deposit in each month constitutes one entry to win.
Before opening up a save and win savings account be aware, however, that while these types of accounts may seem great at first, their interest rates are usually much lower compared to other online savings accounts. Also just like any type of competition it isn’t guaranteed that you will win a prize, so it is up to the individual to determine whether their money is better off in a save to win savings account or a savings account that will earn them more interest
UPDATE 21 January 2014: The Bank of Queensland no longer offer save and win savings accounts.
If you are interested in great savings accounts that reward you with high interest rates for regular repayments, instead of chance prizes, visit our savings accounts comparison page to compare some of Australia’s best accounts. Alternatively the table to the right is displaying some of the best high interest savings accounts available today.