Investengine has launched a £50,000 prize draw it is says aims to encourage people to take up investing.

The investment platform will offer the prize to new customers who open and account and invest a minimum of £100.

At the same time, existing customers can enter by referring friends and family to the platform, with each referral a separate entry into the competition. Referrers can refer a maximum of 25 people to the platform.

The prize draw is open until 2 March. The £50,000 prize will be paid directly into the winner's Investengine account by 30 March. The funds don't have to remain invested for a minimum period.

The move comes on the back of the Government's drive to promote retail investing in a bid to boost returns for savers and increase investment into UK equities.

In April, the Government will launch an industry-led retail investment campaign. In last year's Autumn Budget, the Chancellor slashed the cash Isa allowance to £12,000 in the hopes of pushing more people towards investment products, with stocks and shares Isas retaining the full £20,000 allowance.

To make use of their full Isa allowance, cash savers will need to consider investing in stocks ands shares after the changes come into effect in April 2027.

Investing is being promoted by the Government as it allows people to grow their money above the rate of inflation, where cash savers will see the value for their money eroded over the long term.

According to figures from Moneyfacts Compare, the average cash Isa containing £100 would have grown to £130 between 2010 and 2015, compared to the average stocks and shares Isa increasing to £233.

This is based on an average return of 1.79 per cent for cash Isas, compared with 6.79 per cent for stocks and shares Isas.

Caitlyn Eastell, of Moneyfacts Compare, said: 'When it comes to building long-term wealth, investing through a stocks and shares Isa outperforms saving in cash.'

Investengine, which launched in 2019, offers exchange traded funds (ETFs), which are investments that track the performance of specific markets or sectors, such as the UK's FTSE 100, or technology stocks.

ETFs have become a popular choice for investors looking for a low-cost way of investing in a diversified portfolio. There are now some 2.1million ETF investors in the UK.

Alongside this, Investengine also offers ready-made portfolios and a managed option personalised to your financial goals.