NEW SAVINGS PRIZE DRAW FROM COVENTRY BS WITH A 5% RATE AND ENTRY WITH JUST £10 IN THE ACCOUNT

Coventry Building Society has launched a new monthly savings prize draw account which comes with a 5 per cent rate.

The Sunny Day Saver 3 regular savings account allows up to £150 each month and is open for a limited time during September. 

Savers can open the account with £1 and are not required to make deposits every month.

However, for each month you add at least £10 to your account, you will qualify for that month's prize draw, giving you the chance to win one of ten cash prizes of up to £500.

The monthly draws are from October 2026 to August 2027 with prizes of: one x £500, three x £200, six x £50. 

If you qualify for all 11 monthly prize draws you will also be entered into an additional prize draw, with the chance to win up to £5,000.

The extra prizes include one x £5,000, one x £2,500, two x £500, one x £250.

At the end of the 12-month term, the account will automatically transfer to the statement-based version of easy access saver, which currently pays just 2 per cent.

Mike Mendham, head of savings at Coventry Building Society, said: 'Unlike Premium Bonds, where returns depend entirely on winning a prize, Sunny Day Saver offers the reassurance of earning interest on your savings while also providing the chance to win monthly cash prizes.

'For those who save regularly each month, there's the added benefit of being entered into a larger prize draw. 

'It gives savers the best of both worlds: the opportunity to be rewarded through prizes, alongside the confidence that their money is growing over time, whether they win or not.'

Premium Bonds were boosted this month with an underlying return of 4.35 per cent. 

It offers monthly prizes of £1million, £100,000 and £50,000. The more bonds you hold, the better the odds of winning a prize – but there is no guarantee you'll win. 

Savers can stash up to £50,000 in the National Savings & Investments accounts.

While the 5 per cent rate on Coventry sounds high, the reality is putting the maximum £150 per month into the account means £48 interest over the year - which roughly works out as a 2.65 per cent return over 12 months.

There are also other regular savers offering up to 8 per cent, including Santander, which allow a bigger £200 a month to be saved in.

Meanwhile, if you already have £1,800 to save, there are two easy-access savings accounts offering 5 per cent, from Cahoot and Spring, on balances below £3,000 and £5,000 respectively. 

This would result in £92 interest.  

Rachel Springall, of Moneyfacts, said: 'Regular savings accounts are an ideal choice for savers to build up financial resilience, and it can be incredibly beneficial to have an emergency fund set aside to cover unexpected costs.'

2026-09-08T09:20:17Z