Savings provider NS&I will be increasing its prize fund rate from 1.40 percent to 2.20 percent, adding an expected £76million to the prize fund for October. The changes will see the number of £5,000, £10,000, £25,000, £50,000 and £100,000 prizes almost double.
There will also be 19 times as many £50 and £100 prizes paid out from October. The odds of each £1 Premium Bond number winning a prize will also improve from 24,500 to one to 24,000 to one.
Andrew Griffith, financial secretary to the Treasury said: “It’s great to see NS&I providing a boost to the nation’s savers – more than doubling the prize fund rate offered on its much loved Premium Bonds over the last six months.
“I look forward to working with Ian and the rest of the NS&I team in the months ahead, ensuring the organisation continues to deliver for both savers and the taxpayer.”
Ian Ackerley, NS&I chief executive, said: “With over 22 million holders, Premium Bonds are the nation’s favourite savings product and are more popular than ever.
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“It’s great to be able to increase the prize pot and give our customers more chances each month to win tax-free prizes.
“This is the second increase to the Premium Bonds prize fund rate that we have made in less than six months.
“These changes have helped us ensure that Premium Bonds remain attractive, while also ensuring that we continue to balance the interests of savers, taxpayers and the broader financial services sector.”
The first Premium Bonds prize fund increase of the year came in June when NS&I boosted the fund rate from 1.00 percent up to 1.40 percent, changing the odds of winning from 34,500 to one to 24,500 to one.
More to follow …
