Premium Bonds prize fund rate to increase to 4% with best odds in 15 years

National Savings and Investment (NS&I) has announced that the prize fund rate for Premium Bonds will rise to four percent for August’s draw.

‌The rate will increase from the current 3.60 percent and will see savers’ odds of winning improve to 22,000 to one from 24,000 to one.

‌As a result, this means that each £1 Bond will have its best chance of winning a prize in almost 15 years.

‌According to NS&I, this increase will award an extra $30million to the prize fund in two months’ time.

Due to this, an estimated 460,000 extra prizes up for those who are Premium Bonds holders.

READ MORE NS&I offers new payment method to top up Premium Bonds as prize draw looms[LATEST]

NS&I’s chief executive Dax Harkins outlined why this decision to hike the prize fund rate is good news for savers.

He explained: “Premium Bonds are one of the nation’s favourite savings products and I’m delighted that we’re able to improve the odds to the best they have been in almost 15 years, with more prizes, more excitement and more life changing wins for savers up and down the country.

“These changes will benefit millions of NS&I’s savers who have money in Premium Bonds, Direct Saver and Income Bonds.”

Furthermore, NS&I will raise the interest rate on its Investment Account from 0.60 percent to 0.85 percent.

Don’t miss…
Virgin Money boosts interest rate on fixed cash ISA to ‘excellent’ 5.05%[LATEST]
Bank offers ‘excellent’ 5.86% rate on fixed savings – ‘deal sits above peers'[LATEST]
Dad’s stress as surging mortgage rates could jeopardise ‘forever home'[LATEST]

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

On top of this, NS&I shared that the interest rates across its line of variable savings products will also be hiked.

Notably, the financial institution’s Direct Saver and Income Bonds’s rates will be raised to 3.40 percent from 2.85 percent.

This interest rate boost will be applied to both accounts by NS&I from July 13, 2023.

Last month, two lucky winners from Essex and South Gloucestershire took home the Premium Bonds of £1million.


Source: Read Full Article