Yet over 10 million working aged people in the UK do not save regularly – with 2 million people not having any savings at all. Without this savings buffer, people could be left vulnerable to unexpected costs and unmanageable debt, particularly with the current cost of living pressures.
To help people save more of their money, banks, building societies and credit unions have launched accounts in recent years known as prize-linked savings accounts. These accounts represent an innovative approach that enters savers into a periodic cash prize-draw if they save regularly. They can be a powerful toolOpens in a new window to get more people to save.
This project explored how prize-linked savings can be better communicated to potential savers. For this, we conducted an evidence review and experiment with Nationwide Building Society that gave us a closer look at how people that might typically save less interact with prize-linked savings accounts.