NS&I raises premium bond rates: millions of depositors finally see their chances of winning a monthly prize increase
- NS&I will increase the rate of the premium bond prize fund from 1 to 1.4% from June
- The odds of each winning bond number of £ 1 will range from £ 34,500 to 1 to £ 24,500 to 1
- An additional 1.4 million prizes will be paid out in the June premium bond draw
National savings and investment will increase the rate of the base prize fund of premium bonds from 1 percent to 1.4 percent, which will increase the chances of 21 million depositors to receive a monthly prize.
As of June 2022, the odds of each 1-pound premium bond number winning the prize will vary from 34,500 to 1,500 to 24,500 to 1.
The increased prize fund will lead to the payment of an additional 1.4 million prizes in the June draw of premium bonds.
The number of prizes of 100,000 pounds will increase from six to 10, and the number of prizes of 50,000 pounds – from 11 to 19.
Luck of the draw: Each month NS&I distributes two prizes of £ 1 million and five prizes of £ 100,000, 11 prizes of £ 50,000 and 20 prizes of £ 25,000.
John Glenn, secretary of the Treasury, said: “Premium bonds have offered the public an alternative way of saving since they were introduced in 1956, and next week marks 65 years since ERNIE played the first winners of premium bonds.
“I am pleased to see that NS&I is raising the premium bond rate on premium bonds, which will give investors back an additional 1.4 million prizes worth £ 40 million each month, which will help put money in the pockets of the country’s depositors.”
NS&I previously reduced the amount of monthly prizes from 1.4% to 1% in December 2020. prizes have been frozen by 1 percent since December 2020, despite the fact that the base rate has increased tenfold during that time.
Approximately 21 million – one in three of the UK population – keep them, this will increase the chances of all bondholders winning one of the tax-free prizes of between £ 25 and £ 1 million each month.
There will be two jackpot winners of £ 1 million a month.
|Price of prizes in May||Price of prizes in June (approximate)||Number of prizes in June (approximately)|
|£ 1 million||2||2|
|£ 500||5889||8 292|
|£ 100||31 907||37 922|
|£ 50||31 907||37 922|
|£ 25||3 343 185||4,748,097|
|Total: £ 98,183,175||3 415 068||4,835,362|
Along with the increase to £ 100,000 and £ 50,000 in prizes, the number of prizes of £ 25,000 will increase from 24 to 40.
The popular National Savings and Investment product allows investors to keep up to £ 50,000 in their accounts.
Over the past two years, a significant amount has been hidden in premium bonds.
There are currently nearly 118 billion eligible bonds, compared to just over 86 billion bonds in March 2020.
It should be noted that although your chances of winning a prize, winning will most likely provide you with one of the £ 25 prizes awarded each month.
For example, this month approximately 3.34 million of the 3.42 million prizes awarded were £ 25.
As for winning one of the two £ 1 million jackpots, your chances are incredibly small.