Family BS savings lottery with better odds of £50k than Premium Bonds

Family Building Society has brought back its Windfall Bond savings account which gives those with £10,000 a better chance at winning £50,000 than the Premium Bonds draw.

But there is also the possibility no one could end up winning, unlike with NS&I’s Premium Bonds draw that doles out prizes each month.

The Epsom-based mutual has brought back its Windfall Bond, giving rate-starved savers a potential one in 714 chance of winning one of 21 tax-free prizes ranging from £1,000 all the way to £50,000.

The existing prize draw, which has paid out 336 prizes worth £2million since the first draw half a decade ago, currently offers 13 prizes a month. The new draw has added eight extra prizes, five more £1,000 ones and three worth £2,500.

Windfall: Savers can win up to £50,000 with Family Building Society's relaunched Windfall Bond savings lottery

Windfall: Savers can win up to £50,000 with Family Building Society's relaunched Windfall Bond savings lottery

Windfall: Savers can win up to £50,000 with Family Building Society’s relaunched Windfall Bond savings lottery

There is the possibility that no prizes will be won, however, as 15,000 bonds are entered into the prize draw but if all of those have not been bought, then the building society fills the gap with blank tickets. 

If one of these blank tickets wins a prize, there is no redraw, the prize simply isn’t won.

It begins in October but only savers who applied before the end of August will be eligible for it, later applicants will go into draws after that.

New and existing savers must buy Bonds upfront in £10,000 instalments, and the account can be opened online, by post or in its branch in Epsom, Surrey.

Savers are given one Windfall Bond for each £10,000 deposit, but unlike National Savings & Investment’s Premium Bonds, another savings account with a monthly prize draw, additional deposits beyond the first one are not permitted.

Withdrawals also cannot be made without closing the account, which requires 35 days’ notice.

However, for savers with large balances there is no maximum amount which can be deposited, although only up to £85,000 is covered by the Financial Services Compensation Scheme.

The account also pays annual interest equivalent to the Bank of England base rate, currently 0.1 per cent.

The prize draw is made on the tenth working day of every month, meaning this month’s draw is on 14 September. The October draw, the first one to hand out more prizes, will also be on the 14th.

How many prizes? 

Family Building Society is handing out 21 prizes in total from October:

– One £50,000 jackpot

– Two prizes of £10,000

– Three prizes of £2,500

– 15 prizes of £1,000 

Bonds become eligible for the draw the second month after they are bought, meaning someone who opened one now would be entered into November’s draw.

However, there is a chance no one could win the £50,000 jackpot, or even any prize at all. 

Each Bond is given a ticket number, with 15,000 tickets in the draw in total.

With each Bond worth £10,000, that means a maximum of £150million can be invested, although the building society plans to increase that capacity if it gets close to it.

Family Building Society admitted that from time to time a bondholder did not win the top £50,000 prize, with five of the 13 prizes in the August draw not going to savers. 

It means that unless all the tickets are bought, there is a chance no one could win the £50,000 prize.

What other savings prize draws are out there?

The world of savings lotteries is now an increasingly crowded one with the relaunch of the Windfall Bond.

In February this year Nationwide Building Society launched its Start to Save account, which pays 1 per cent interest and enters those who pay in between £50 and £100 a month over a three-month period into a quarterly prize draw, with the chance of winning £100.

Nationwide said after the first draw in July that around 47,000 savers were eligible for it, with 458 winning the three-figure prize. It said nearly 84,000 in total had opened an account, with £16million saved.

Its prize fund is based on the amount saved, with savers in July able to win 1 per cent of the total balance saved between April and June. Because account holders collectively put away £4,580,000 over those three months, a prize fund of £45,800 was up for grabs.

Nationwide Building Society and Halifax both offer lotteries where savers can win prizes. Nationwide pays out £100 prizes to savers every three months, and Halifax up to £100,000

Nationwide Building Society and Halifax both offer lotteries where savers can win prizes. Nationwide pays out £100 prizes to savers every three months, and Halifax up to £100,000

Nationwide Building Society and Halifax both offer lotteries where savers can win prizes. Nationwide pays out £100 prizes to savers every three months, and Halifax up to £100,000

Based on the first draw, Nationwide savers had a one in 103 chance of winning a £100 prize.

Halifax’s savings prize draw hands out 1,603 prizes of £100, £1,000 and £100,000, worth £550,000, to registered customers who keep more than £5,000 across all Halifax accounts and Isas for a whole calendar month.

This is Money asked Halifax in February what the rough odds of winning were, but it told us it couldn’t provide them as the number of entrants changed each month.

And of course, Family Building Society is also attempting to muscle in on the territory of NS&I’s Premium Bonds, Britain’s best loved savings product.

This month, NS&I handed out 3.85million prizes worth £110.2million, ranging from £25 to the two £1million jackpots. 

How the odds of winning some high value Premium Bond prizes have changed
Prize   Number of prizes in September 2019 Odds of any £1 Bond winning Number of prizes in September 2020 Odds of any £1 Bond winning 
£1million  41.25bn to 1  47.2bn to 1 
£100,000 6 13.75bn to 1  13.5bn to 1
£50,000  11 7.5m to 1  14 6.75bn to 1 
£25,000  22 3.75m to 1  28  3.37m to 1 
£10,000  55  1.5m to 1  71  1.33m to 1 
Source: NS&I 

With the last few months seeing record sums poured into Premium Bonds, the odds of winning one of these have actually gotten longer, increasing from 41.25billion to one last September to 47.2billion to one.

However, the number of smaller prizes has actually been adjusted to account for the increased number of Premium Bonds in the draw, with 14 £50,000 prizes, the same value as the top prize in Family Building Society’s draw, given away in September.

Holding £10,000 worth of Premium Bonds would therefore give you a one in 674,806 chance of winning £50,000, meaning there is a slimmer chance of winning than the 15,000 to one shot at winning the same amount, the jackpot, in the Family Building Society prize draw.

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