Halifax axes Savings Prize Draw – what are the alternatives?

Halifax is axing its popular Savings Prize Draw, with other changes coming over the next few months. 

For 14 years, thousands of Halifax customers have had the chance to win up to £100,000 each month, with prize funds sometimes rising to £500,000. Now, the bank is scrapping the draw as part of a wider shake-up.

It has already axed its £5 reward scheme but is also planning some new perks, including fee-free spending abroad and interest on certain current account balances in the coming months.

Here, Which? explains what these changes mean for Halifax customers and what alternatives are available if you’re after prize draws or better account perks elsewhere.

What is Halifax’s Savers Prize Draw?

Halifax’s Savers Prize Draw gives customers the chance to win cash prizes each month. 

The prizes for each month's draw are:

• Three prizes of £100,000
• 100 prizes of £1,000
• 1,500 prizes of £100.

Launched in 2011, it has had more than 160,000 winners sharing around £75 million so far. 

To be eligible, you need to be aged 18 or over, live in England, Wales or Scotland, and keep at least £5,000 in a qualifying Halifax savings account for the entire previous month. 

The draw is held during the first three working days of each month, and winners are contacted within a month, with prizes paid directly into their Halifax or Bank of Scotland account.

• Find out more: best savings rates 2025

Why is Halifax closing its Savers Prize Draw?

Halifax says it's closing the Savers Prize Draw as part of a review of how it rewards customers. The final prizes will be awarded in September 2025 and, until then, eligible customers will continue to get entries in the draw each month.

Halifax said: 'Our customers’ expectations continue to change, and we are taking the opportunity to look at how we can reward customers in different ways in the future.' 

What else is changing for Halifax customers?

As well as closing its Savers Prize Draw, Halifax is making other changes to its current account perks and rewards. Here’s what’s happening:

£5 reward scheme scrapped

Halifax has axed the £5 reward scheme on its Reward current account. This account offers perks in exchange for paying in a set amount each month and meeting other conditions. 

The scheme previously allowed customers to earn £5 cash, a cinema ticket or digital magazines each month by meeting certain criteria.

If you signed up before Tuesday 17 June 2025, you’ll continue to receive your chosen reward until 30 September 2025, as long as you keep meeting the usual conditions.

• Find out more: best cashback current accounts 

Fee-free spending abroad introduced

From 7 July, Halifax is introducing fee-free spending abroad for its Halifax Rewards current account. This means you won’t be charged to make payments in foreign currencies or to withdraw cash overseas.

Currently, Halifax charges a 2.99% foreign currency transaction fee plus an additional 50p fee on each transaction, although the latter is waived for spending in Euros in the EU, Iceland, Liechtenstein and Norway.

These fees will remain in place for standard current accounts.

• Find out more: best debit cards to use abroad 

Interest to be paid on balances

From 1 October, Halifax will start paying interest on balances in its Rewards accounts. 

Customers will earn 1.5% on balances up to £3,999 and 3% on balances between £4,000 and £5,000, provided they have at least two Direct Debits coming out of their account each month. No interest is paid on balances above £5,000.

Interest is calculated daily and paid into your account each month. 

• Find out more: high-interest current accounts

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Should you consider an alternative savings prize draw?

With Halifax’s Savers Prize Draw coming to an end, you might be wondering what other options are available. Here are some of the main alternatives:

Premium Bonds

What it is: A savings product from Treasury-backed National Savings and Investments (NS&I) where your money is entered into a monthly prize draw instead of earning interest. 

How much you can win: Prizes range from £25 up to £1m, with two £1m jackpots awarded each month. All prizes are tax-free.

How you enter: You can invest between £25 and £50,000, getting a unique bond number for every £1 invested. The more you hold, the better your chances. NS&I says the odds are 22,000 to 1 per £1 bond each month.

You need to be aged 16 or over to buy them for yourself. Adults can also buy premium bonds for children under 16, held in the child’s name with the parent or guardian managing the account.

What else you need to know: The current prize fund rate is 3.8%, dropping to 3.6% from August. 

• Find out more: Premium Bonds are they worth buying?

Chip Prize Savings Account

What it is: A digital prize savings account from Chip that pays no interest. Instead, your average monthly balance earns entries into a monthly prize draw.

How much you can win: Chip offers one ‘grand’ prize which has previously been as high as £75,000, a few hundred prizes of £10, and a few thousand worth £5. 

How you enter: Your average balance over the month determines your number of entries. Every £10 you hold in the account counts as one entry. 

For example, if you kept £1,000 in the account for an entire 31-day month, your average balance would be £1,000, giving you 100 entries. If you deposited £1,000 partway through the month – say, on day 20 – your average balance would be lower, resulting in fewer entries (around 35 in this case). Chip says this rewards savers who deposit earlier and keep their money in longer.

You must be aged 18 or over to open an account.

What else you need to know: The prize draw takes place in the first week of each month, and Chip emails winners. 

The Sunny Day Saver - Coventry Building Society

What it is: A savings account offering monthly prizes alongside interest. 

How much you can win: Each month, there are 20 prizes up for grabs: one of £500, five of £200 (x5) and fourteen of £50.

How you enter: To qualify, you need to save at least £10 in the account by the last working day of the month. You can pay in up to £150 each month, but saving more doesn't increase your chances – each eligible account gets one entry per month, regardless of balance (as long as it’s more than £10).

You must be aged 18 or over to open this account, and you can only hold one Sunny Day Saver, whether it’s sole or joint.

What else you need to know:  The account pays 6.25% variable interest, paid annually. For example, if you saved the maximum £150 each month for a year and the interest rate didn’t change, you’d earn around £61.80 in interest, not including any prizes won.

Kent Reliance Savings Account draw

What it is: Kent Reliance Building Society runs a monthly prize draw offering a £1,000 cash prize to eligible customers. Kent Reliance is part of OneSavings Bank plc.

How much you can win: £1,000 each month. 

How you enter: You’re entered automatically if you:

• Are aged 18 or over.
• Have a Kent Reliance savings account with a balance of at least £100, or a mortgage account with a balance of at least £1,000 on the last working day of the month before the draw.
• Haven't opted out of the prize draw.

If you have a joint account, only the first named account holder is entered. Each qualifying customer gets one entry per month, regardless of how many eligible accounts they hold.

What else you need to know: The draw takes place on the last working day of each month, and winners are contacted directly by Kent Reliance.

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Are savings prize draws worth it?

The main appeal of savings prize draws is the chance to win a big tax-free cash prize.

Unlike traditional lotteries, you’re not paying to enter – your savings remain yours. But there’s no guarantee of a win and, if the account doesn’t pay interest, your money will lose value over time due to inflation. 

If you prefer certainty over the chance of a prize, check whether a savings account could leave you better off.  

• Find out more: what are the different types of savings account?