Premium Bonds raises prize money to highest level since 2007 – giving savers more chance of cashing out
- Premium Bonds price fund percentage hits 4% as of August – highest percentage since 2007
- The odds of winning will improve to 22,000 to 1 with every £1 bond purchased
- The interest rates for Income Bonds and Direct Saver will be increased from July 13
National Savings & Investments raises the premium rate on its popular Premium Bonds savings account to the highest level since 2007.
The prize money percentage will rise to 4 percent from the August draw, meaning the odds of winning are the best in 15 years.
The rate was previously set at 3.7 per cent, meaning the chance of winning a prize with every £1 bond purchased has increased from 24,000 to one to 22,000 to one.
Savings lottery: Premium Bonds offers an average prize fund return that has now risen to 4% – a level that surpasses many easily accessible savings deals
While there will only be two more £1 million jackpot prizes, the number of other prizes will increase.
This means that the number of £100,000 prizes increases from 71 to 77, the number of £50,000 prizes from 141 to 154 and the number of £25,000 prizes from 284 to 308.
Last month the number of prizes from the smallest price group (£25) went down, but thanks to the new changes, the number of £25 prizes will rise from around 1.5 million to 1.7 million in August.
The interest rates that NS&I pays on its Direct Saver and Income Bonds will also increase from 13 July to 3.40 percent, previously 2.85 percent.
NS&I estimates that the changes will add an additional £30 million to the prize fund from August, with an estimated 460,000 additional prizes up for grabs.
The government-backed savings bank previously raised interest rates from 2.2 to 3 percent on January 1, then again to 3.15 percent in February, and to 3.3 percent in March and 3.7 percent in May.
NS&I CEO Dax Harkins said: “Premium bonds are one of the country’s favorite savings products and I’m excited that we can improve the opportunities to the best they’ve been in nearly 15 years, with more prices, more excitement and more life-changing wins for savers across the country.
“These changes will benefit millions of NS&I savers who have money in Premium Bonds, Direct Saver and Income Bonds.”