UK-based fintech Everything has raised €2m (£1.67m) to reinvent a decades-old financial product: premium bonds.

The raise was led by a group of angel investors, including Merama co-founder and CEO Sujay Tyle, along with Frontier Car Group founders Peter Lindholm and Ricardo Donoso. Axel Arigato co-founder Albin Johansson and angel collective Framtid pitched also provided capital.

The company plans to use the funds to offer its services in the UK in the coming months. Its digital banking account comes with a free Mastercard debit card that provides cashback rewards and premium bonds with a “social twist”.

Everything allocates some of its revenue into “reward buckets” that range from £1 to £1m. Once the reward threshold is funded, the next user making a payment is declared the winner and is notified through the app. Everything said that winnings will be deposited directly into the winning user’s account.

The startup is targeting millennials and Gen Z with its premium bond offering. Its waitlist is already open for people to sign up and the company uses regulated and authorised banking-as-a-service provider Railsbank.

“Premium bonds are the UK’s biggest and probably most loved savings product,” said Michael Wilkinson, Everything co-founder and COO. “Premium bonds haven’t evolved for decades but remain popular across age groups, often gifted across generations. We want to reinvent premium bonds to make them more accessible for younger generations and inject the excitement of winning into everyday finances like spending and saving without the risk of losing.”

The investment in Everything follows a bumper year for UK fintech funding, which soared to a record $11.6bn in 2021.