Premium Bond savers are set for higher payouts after National Savings & Investments (NS&I) raised its prize fund to three.15 per cent ranging from its draw next week.
This marks the fourth rise within the Premium Bond prize fund since rates of interest began to climb just over a 12 months ago.
The most recent rise means an additional £15 million paid out in prizes in comparison with last month, bringing the full to £314.3 million.
The chances of every £1 Bond winning a prize will remain fixed at 24,000 to 1, but more prizes above £50 will probably be paid out.
National Savings & Investments (NS&I) has raised its prize fund to three.15 per cent ranging from its draw next week
The changes mean that the variety of prizes price £50 to £100,000 will increase from next month’s draw on February 2.
The three.15 per cent prize rate is a mean return and savers may do higher or worse than this
Some 870,000 NS&I savers can even profit from a lift to its Direct Saver, Direct Isa and Income Bonds.
Premium Bonds: How do they work?
Customers buy bonds which might be denominated at £1 each, but must now buy no less than £25 in a single go.
Every month, each bond is entered right into a lottery.
There’s a 24,000 to 1 likelihood of every £1 bond winning a prize. Check the winning bonds every month with our Premium Bond tables.
Customers can money their bonds in every time they like, so that they could be treated as just like an quick access savings account, but savers need to wait a few days to get money out of Premium Bonds.
All prizes are tax-free.
> Should I purchase Premium Bonds or open an quick access savings account?
Meanwhile, around 80,000 under-18s will gain from an increase of their Junior Isa rate.
The speed of NS&I’s second-most popular account, Direct Saver, goes as much as 2.6 per cent from 2.3 per cent.
It’s the very best rate paid because the account was launched in March 2010.
This puts the easy-access account just behind the highest payers on internet-based accounts and a top rate if you wish to run the account by phone.
You may check one of the best deals currently on offer in That is Money’s independent best buy savings rate tables.
Income Bonds, popular with pensioners because interest is paid out monthly, have also risen to 2.6 per cent.
It’s the very best rate since 2008. Only a 12 months ago, these accounts paid only 0.35 per after a low of just 0.01 per cent for the 12 months to November 2021.
Its Direct Isa is as much as 2.15 per cent from 1.75 pc, while its Junior Isa rises from 2.7 pc to three.4 per cent. It’s the most recent move from the Government-backed bank to hit its financing targets.
State-owned savings bank NS&I plans to herald £6 billion, plus or minus £3 billion, in its financial 12 months to the top of March.
On the halfway stage to the top of September, it had reached a complete of £3.4 billion.
Latest figures from the Bank of England show it saw £281 million leave in November, the primary time it has seen an outflow since September 2021 and the most important since March that very same 12 months.
NS&I deleted my granny’s Premium Bond… and took back the winnings!’ Upheld complaints against NS&I double
Savers with a few of the very first Premium Bonds have won Ombudsman cases, as successful NS&I customer complaints.
One woman with a 1960 Premium Bond was told she was never the rightful owner, while one other customer saw NS&I delete his late grandmother’s Premium Bond and order him to repay £2,500 of prize money.
These grievances are also a part of a wider trend of complaints against NS&I that has seen customer cases upheld by the Financial Ombudsman Service (FOS) greater than double in 2022.
> NS&I deleted my Gran’s Premium Bonds: How complaints have risen
Ian Ackerley, NS&I chief executive, said: ‘The changes will provide a fine addition for savers with more Premium Bond prizes and a few of the highest rates of interest in over a decade.’
The quantity in Premium Bonds stands at nearly £200 billion as punters hope for an enormous win.
February’s draw has 4,989,652 prizes starting from £25 to £1 million up for grabs.
This is a rise of two,949 prizes compared with last month’s draw, which had 4,986,706 money prizes.
This equates to £15,145,525 in extra money available in next month’s draw.
There will probably be fewer £25 money prizes, as a part of NS&I’s technique to cut smaller prizes while raising larger ones.
This time around the variety of £25 prizes drops by 241,741 to 2.37 million from 2.6 million on this month’s draw.
The number has plummeted from 3.5 million in December’s draw.
The most important increase for next month is available in prizes of £50 and £100, each up 121,077 to 1.28 million apiece.
The variety of £500 prizes will rise to 37,719 while it’s going to pay 605 more £1,000 prizes, a complete of 12,573.
The variety of £5,000 prizes will rise by 61 to 1,177 while there will probably be 31 extra £10,000 pay outs, as much as 590.
The full of £25,000 prizes increases by 12 to 236, while there will probably be 117 winners of £50,000, up from 111.
The £100,000 prize rises by three to 59 while the jackpot of £1 million stays the identical at two every month.
Price increases from January to February’s Premium Bond draw
Value of prizes
January no. of prizes
February no. of prizes
Some links in this text could also be affiliate links. In case you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to make use of. We don’t write articles to advertise products. We don’t allow any business relationship to affect our editorial independence.