Nationwide Building Society has launched a new ‘prize draw’ savings account aimed at getting young people and families to put small amounts of money aside each month.

The society announced that its ‘Start to Save’ account is aimed at encouraging people in the UK to save more – particularly those who have the means to save even a small amount, but for whatever reason aren’t doing so.

Nationwide said the launch forms part of the society’s ‘PayDay SaveDay’ initiative, which seeks to encourage people to save on the day they are paid.

The society highlighted that 11 million people across the UK have less than £100 in savings, and added that the account and approach also supports the Money and Pensions Service’s (MaPS) recently launched UK strategy for financial wellbeing – which includes a goal to get two million more people to save regularly.

“Millions of people are struggling financially and as a building society we are looking at how we can help them become financially stable,” Nationwide director of savings, Tom Riley, commented. “By launching Start to Save, we are offering an account for savers to build their nest egg while rewarding those people who are either discovering or rediscovering a savings habit with a prize draw.

“Our experience tells us that rates are not the primary reason why young people and families aren’t saving. That is why Start to Save is aimed at those struggling to build a savings buffer of any sort. And even without a prize draw win, £50 per month saved over the two-year period would certainly be a good financial buffer to fall back on.

“We believe our Start to Save account complements other initiatives – such as Help to Save and PrizeSaver, the government’s savings scheme for credit unions – because together, they reach out to a wide variety of people, all of whom are not saving for various reasons.”

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