National Savings and Investments will increase the Premium Bond underlying prize fund rate from 1 per cent to 1.4 per cent boosting the chances of its 21million savers bagging a monthly prize.
As of June 2022, the odds of each £1 Premium Bond number winning a prize will change from 34,500 to 1 to 24,500 to 1.
The increased prize fund rate will see an estimated additional 1.4million prizes paid out in the June Premium Bonds prize draw.
The number of £100,000 prizes will rise from six to 10, and £50,000 prizes from 11 to 19.
Luck of the draw: Each month NS&I hands out two £1m prizes and five £100,000 prizes, 11 £50,000 prizes and 20 prizes worth £25,000.
John Glen, economic secretary to the Treasury, said: ‘Premium Bonds have offered the public an alternative way to save since they were first introduced in 1956, and next week marks 65 years since ERNIE drew the first Premium Bonds prize winners.
‘I’m delighted to see NS&I raise the prize fund rate on Premium Bonds, which will see an additional 1.4 million prizes worth £40million being returned to savers each month – helping to put money in the pockets of the nation’s savers.’
NS&I previously cut the amount it pays in monthly prizes from 1.4 per cent to 1 per cent in December 2020 and prizes have been frozen at 1 per cent since December 2020, despite the base rate having risen tenfold in that time.
With roughly 21million – one in three of the UK population – holding them, this will boost the chances of all bond holders winning one of tax free prizes ranging from £25 to £1million every month.
There will continue to be two £1 million jackpot winners each month.
Along with the boost to £100,000 and £50,000 prizes, the number of £25,000 prizes will increase from 24 to 40.
The popular National Savings and Investment product allows savers to stick up to £50,000 in the accounts.
Over the past two years a considerable amount has been stashed into Premium Bonds.
There are currently almost 118billion bond numbers eligible for the draw, up from just over 86billion eligible bonds in March 2020.
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