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.
When did premium bond interest rate change?
Back in December 2020, when base rate was at 0.1 per cent, NS&I cut the effective interest (prize) rate on Premium Bonds from 1.4 per cent to 1 per cent.
So, instead of every £1 bond having a one in 24,500 chance of winning a prize, the chance of coming up trumps was lowered to one in 34,500.
This latest adjustment will return the odds to what they were pre-December 2020.
Generally the prizes are aligned with the UK economy and interest rates across the UK.
Economic Secretary to the Treasury, John Glen, said:
“Next week marks 65 years since ERNIE drew the first Premium Bonds prize winners in 1956.
“I’m delighted to see NS&I raise the prize fund rate, which will see an additional 1.4 million prizes worth £40 million being returned to savers each month.”
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