BRADFORDIANS have a chance to 'win £5,000 while you save' under new credit union scheme.

The district's branch is one of 15 credit unions to pilot a PrizeSaver account by HM treasury with a top prize of £5000.

Savers who put away as little as £1 with participating credit unions will have a chance to win.

Every month will see a top prize of £5,000 awarded to the winning saver, with a further 20 smaller prizes of £20 also awarded.

The Treasury said that the pilot, announced at last year's Budget, is designed to help improve people's financial resilience and raise awareness of credit unions.

For every pound put into the savings account, savers will receive an entry into the prize draw.

The exact terms of the savings accounts will vary between credit unions - so savers should check with their chosen credit union first.

The Economic Secretary to the Treasury, John Glen, said: "Saving for the future is something we all try to do, but we know it can sometimes be challenging. That’s why we teamed up with credit unions across the country to launch this new account, giving savers the chance to win up to £5,000 every month.

"I’ve no doubt our first winner is working tirelessly to make sure we get our cards and parcels in time for the holiday season, and hopefully this win will help them to have an extra happy Christmas this year."

Asked how the new initiative differs from existing Premium Bonds, which are run by Treasury-backed body NS&I, the Treasury said savers in the credit union schemes can invest with as little as £1 and these schemes are specifically designed to link people up with their local credit union, which may also potentially be able to offer them other useful financial products.

Premium Bonds by contrast require a minimum investment of £25 - with a £1 million jackpot up for grabs every month.

Credit unions, which are owned and controlled by their members, can offer people cheaper alternatives to some other high street loans - and the maximum interest rate credit unions are allowed to charge generally is capped at 3% a month, while in Northern Ireland the cap is lower, at 1% a month.

Credit unions' profits are reinvested to meet members' needs.

The new accounts will be immediately available from 1st Alliance Credit Union, Central Liverpool Credit Union, Clockwise Credit Union, East Sussex Credit Union, Merthyr Tydfil Borough Credit Union, Nottingham Credit Union, Riverside Credit Union, South Manchester Credit Union, Westcountry Savings and Loans, Commsave Credit Union, Plane Saver Credit Union and Police Credit Union.

The pilot will run until the end of March 2021 and will help inform understanding of the PrizeSaver model.

To find out more, visit the PrizeSaver website.