NS&I will increase the Premium Bonds prize fund rate from 1.00% to 1.40%, effective from the June 2022 Premium Bonds prize draw. The odds of each £1 Premium Bond number winning a Premium Bonds prize will also change from 34,500 to 1 to 24,500 to 1.
The increased prize fund rate will see an estimated additional 1.4 million prizes paid out in the June Premium Bonds prize draw.
Economic Secretary to the Treasury, John Glen, 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 £40 million being returned to savers each month – helping to put money in the pockets of the nation’s savers.”
NS&I Chief Executive, Ian Ackerley, said: “The new prize fund rate ensures that Premium Bonds are priced appropriately when compared to the interest rates offered by our competitors. It also ensures that we continue to balance the interests of savers, taxpayers and the broader financial services sector.
“Premium Bonds customers will benefit from the chance to win a further 1.4 million tax-free prizes each month, as well as the peace of mind that customers get with 100% of their NS&I savings being backed by HM Treasury.”
Current and new prize fund rate and odds
|Current prize fund rate||Current odds||New prize fund rate (from June 2022)||New odds (from June 2022)|
|1.00% tax-free||34,500 to 1||1.40% tax-free||24,500 to 1|
Number and value of Premium Bonds prizes
|Value of prizes in May 2022||Number of prizes in May 2022||Value of prizes in June 2022 (estimated)||Number of prizes in June 2022 (estimated)|
And there’s more…
Tune in here for our recent chat with Andrew Pike, Head of Intermediary Services at NS&I about how NS&I works to support advisers’ needs and how he sees NS&I products working within the financial planning process.