WHAT IS A CREDIT UNION?

A credit union is a financial co-operative which offers savings, loans and other services to its members. It’s owned and controlled by its members.

Is my money protected?

Savings in a credit union, up to £85,000, are protected by the Financial Services Compensation Scheme.

Who regulates credit unions?

Credit unions are authorised by the Prudential Regulation Authority, and regulated by the UK Financial Conduct Authority and Prudential Regulation Authority.

How do I know if I’m eligible to open a PrizeSaver account?

You should check your chosen credit union’s website to see whether you fall within their ‘common bond’. The common bond will vary, but may include living or working in the same area, working for the same employer, or belonging to the same trade union or association.

You must also be over 18, be resident in England, Wales or Scotland, and hold your PrizeSaver account in your own name. This means that you won’t be able to open a PrizeSaver account as a joint account, or as a corporate account.

I don’t have a common bond with any of the participating credit unions. What do I do?

Not all credit unions in the UK offer a PrizeSaver account. You might still be eligible to join another credit union, and open one of their other savings accounts. Find out if you’re eligible at www.findyourcreditunion.co.uk

Can I open more than one PrizeSaver account?

You can only have one PrizeSaver account. This means you should not have more than one PrizeSaver account with a participating credit union. You should also not open PrizeSaver accounts in more than one of the participating credit unions.

How do prize draw entries work?

Every £1 in your account gives you one entry into the monthly prize draw (up to £200). You are automatically entered into the draw every month. The maximum number of entries for each person is 200, equal to £200 in savings.

The number of entries you have in each month’s draw will be based on your account balance on the last day of the previous month (up to 200 entries). For example, your entries into the February draw will be determined by the balance in your account on the last day in January.

What are the prizes?

Every month there is one prize of £5,000, and 20 bonus prizes of £20. The value of the prizes may increase during the pilot but will not decrease.

When does the monthly draw take place?

The prize draw will usually take place on the 15th of each month. If the 15th of the month falls on a weekend or bank holiday, the draw may take place on a different date.

The final prize draw will take place no less than six weeks before the end of the pilot.

Can I withdraw my money?

Individual credit unions taking part in the pilot may place restrictions on withdrawals from PrizeSaver accounts. You should check with your credit union when you open your account.

How much can I deposit in the account?

You can save more than £200, but you won’t get additional prize draw entries. Individual credit unions participating in the pilot may limit the amount you can deposit in your account. You should check with your credit union when opening an account.

Will I get interest?

Some, but not all, participating credit unions will offer you interest or dividend on your savings. You should speak to your credit union when opening an account to find out whether they will.

PrizeSaver is a pilot. What does this mean?

Participating credit unions are offering the prize draw as part of a pilot announced by HM Treasury in the Autumn Budget 2018. The pilot will run until March 2021. During this time, we will test whether the PrizeSaver accounts are successful, and whether we can improve how they are designed.

What happens at the end of the pilot?

When you open your PrizeSaver account, your credit union should inform you what will happen to your account at the end of the pilot. You should check this with your credit union when opening your account.

The final prize draw will take place no less than six weeks before the end of the pilot.