PREMIUM Bond customers could be in for more cash pay outs next year because of a rate rise.
National Savings and Investments (NS&I) Premium Bonds feature a monthly lottery-style draw which offers two jackpot wins of £1million.
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The premium rate will rise from 2.2 to 3 per cent in January 2023, offering higher-value prizes for grabs.
An estimated additional £80million high-value prizes will come from this rate rise.
Yet the odds of winning a high-end prize remain low for the average user at 24,000 to one.
According to Martin Lewis’ MoneySavingExpert, the 3 per cent Premium Bond prize-fund rate out-paying today’s top easy-access savings rate of 2.85 per cent.
However, there will be more than three times as many prizes between £5,000 and £100,000 available.
Next year is proving to be lucky for investors: three times as many prizes between £5,000 and £100,000 will be available.
There will be 56 chances to win £100,000, and the January 2023 prize fund will reach an expected £299,572,750.
Customers with Direct Saver and Income Bonds will see a higher interest rates on their investments, with a rate of up to 2.3 per cent.
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NS&I chief executive Ian Ackerley said: “The New Year increase to the Premium Bonds prize fund rate will mean that customers will have seen the prize fund rate triple in less than a year.
“This means a bigger prize pot and more higher value prizes for our customers – a great way to start 2023.”
If a customer wants to invest, the minimum amount available to buy is £25 for one-off purchases and monthly standing orders, and the maximum is £50,000.
Premium Bonds are a unique way to save: they don’t offer interest.
Each £1 you put in Premium Bonds is an entry in to the monthly prize draw.
Premium Bonds are government-backed, so your money is safe and there’s no risk of losing cash.
In 2019, NS&I said there are over 1.5million premium bond prizes yet to be claimed by their rightful owners.
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