NS&I’ll enhance the Premium Bonds prize fund price from 1% to 1.4% from the June prize draw.
It should additionally enhance the chances of successful a prize.
The chances of every £1 Premium Bond quantity successful a prize will change from 34,500 to 1 to 24,500 to 1.
The change to the chances will see an estimated 1.4m extra prizes paid out within the June prize draw.
The Premium Bonds prize fund price funds a month-to-month prize draw for tax-free prizes. NS&I pays a yearly prize fund price on Premium Bonds, which is equal to a yearly price of curiosity. This equal quantity of curiosity on Premium Bonds which are eligible for that month’s draw is then divided by 12 to present NS&I a prize fund for the month-to-month draw.
Premium Bond prizes are freed from earnings and capital features tax.
Authorities-backed NS&I mentioned the rise within the price will be sure that Premium Bonds are priced appropriately compared to rates of interest provided by rivals.
John Glen, financial secretary to the Treasury, mentioned: “Premium Bonds have provided the general public another approach to save since they have been first launched in 1956, and subsequent week marks 65 years since ERNIE drew the primary Premium Bonds prize winners.
“I’m delighted to see NS&I increase the prize fund price on Premium Bonds, which can see a further 1.4 million prizes price £40 million being returned to savers every month – serving to to place cash within the pockets of the nation’s savers.”
NS&I is among the largest financial savings organisations within the UK, providing a variety of financial savings and investments to 25m clients. All merchandise provide 100% capital safety as NS&I is backed by HM Treasury.