NS&I ups Premium Bond prize fund rate to 3.7%
Premium Bonds boosted again: NS&I ups fund rate to highest level in 15 years to 3.7% meaning 24 extra £100k and £50k prizes up for grabs
- Premium Bonds prize fund rate will reach a 15-year high from July prize draw
- Changes will see an extra £39m in prizes available for bondholders
Premium Bond savers are being offered even better payouts after National Savings & Investments raised its prize fund from 3.3 per cent to 3.7 per cent starting from its draw next month.
July’s draw will represent a 15-year high for the Premium Bonds prize fund rate and see an additional £39 million in prizes available for bondholders.
The odds of each £1 Premium Bonds winning a prize will remain at 24,000 to 1, with more chances each month for its 21million customers to win prizes worth between £50 and £100,000.
Most notably, the number of £100,000 prizes is rising from 63 to an estimated 71, the number of £50,000 prizes is increasing from 124 to 141 and the number of £25,000 prizes is rising from 252 to 284.
Savings lottery: Premium Bonds offer an average prize fund rate of return that has now risen to 3.7% – a level that beats many easy access savings deals
As recently as the May 2022 draw, there were just six prizes paying £100,000 and 11 paying £50,000.
The change to the Premium Bonds prize fund rate is the fourth increase that NS&I has made this year and the sixth change over the past 12 months.
NS&I increased the rate from 2.2 to 3 per cent on 1 January, and then again in February to 3.15 per cent and to 3.3 per cent in March.
Dax Harkins, chief executive of NS&I, said: ‘This is now the sixth prize fund rate increase for Premium Bonds in just over a year, making it the highest it’s been in over 15 years.
‘With the changes, we’re expecting to pay out more than £374million to winners in July with more higher value prizes, meaning that, each month, more lives will be changed by Premium Bonds.’
The move comes as savings rates have been rising notably in recent weeks.
The top easy-access rate is now 4 per cent from Coventry Building Society – and 18 accounts in our independent savings tables now pay 3.7 per cent or more.
Meanwhile, yesterday, savings platform Raisin UK launched a top one-year fixed-rate from Ahli United Bank paying 5.7 per cent.
NS&I has also increased the interest rate for young savers holding its Junior Isa, with the rate increasing to 3.65 from 3.4 per cent. More than 89,000 savers aged under 18 will benefit.
However, there are 14 Junior Isas in our independent tables that currently beat this – including 5.1 per cent from Bath Building Society for those who live locally, or 4.3 per cent from Coventry Building Society open to all.
