Millions of pounds more in Premium Bonds prizes will be up for grabs from next month as NS&I increases the prize fund rate from 1.40% to 2.20%, adding an expected £76 million to the prize fund for October.
The changes will see the number of £5,000, £10,000, £25,000, £50,000 and £100,000 prizes almost double. There will also be 19 times as many £50 and £100 prizes paid out from October. The odds of each £1 Premium Bond number winning a prize will also improve from 24,500 to 1 to 24,000 to 1.
Financial Secretary to the Treasury, Andrew Griffith said: “It’s great to see NS&I providing a boost to the nation’s savers - more than doubling the prize fund rate offered on its much loved Premium Bonds over the last six months.
“I look forward to working with Ian and the rest of the NS&I team in the months ahead, ensuring the organisation continues to deliver for both savers and the taxpayer."
NS&I Chief Executive, Ian Ackerley, said: “With over 22 million holders, Premium Bonds are the nation's favourite savings product and are more popular than ever. It's great to be able to increase the prize pot and give our customers more chances each month to win tax-free prizes.
"This is the second increase to the Premium Bonds prize fund rate that we have made in less than six months. These changes have helped us ensure that Premium Bonds remain attractive, while also ensuring that we continue to balance the interests of savers, taxpayers and the broader financial services sector.”
Current and new prize fund rate and odds
|
Current prize fund rate |
Current odds |
New prize fund rate (from October 2022) |
New odds (from October 2022) |
|
1.40% tax-free |
24,500 to 1 |
2.20% tax-free |
24,000 to 1 |
Number and value of Premium Bonds prizes
|
Value of prizes in September 2022 |
Number of prizes in September 2022 |
Value of prizes in October 2022 (estimated) |
Number of prizes in October 2022 (estimated) |
|
£1,000,000 |
2 |
£1,000,000 |
2 |
|
£100,000 |
10 |
£100,000 |
18 |
|
£50,000 |
20 |
£50,000 |
35 |
|
£25,000 |
39 |
£25,000 |
72 |
|
£10,000 |
98 |
£10,000 |
178 |
|
£5,000 |
199 |
£5,000 |
357 |
|
£1,000 |
2,779 |
£1,000 |
4,364 |
|
£500 |
8,337 |
£500 |
13,092 |
|
£100 |
38,137 |
£100 |
728,737 |
|
£50 |
38,137 |
£50 |
728,737 |
|
£25 |
4,774,798 |
£25 |
3,484,716 |
|
Total: £138,988,000 |
Total 4,862,556 |
Total £218,253,450 |
Total 4,960,308 |
–Ends–
Notes to Editors
1. NS&I increased the prize fund rate on Premium Bonds from 1.00% to 1.40% in June 2022. The odds at this time changed from 34,500 to 1 to 24,500 to 1. More information can be found here .
2. NS&I announced changes to other variable products, as well as some fixed-term products, on 21 July 2022. More information can be found here .
3. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security as NS&I is backed by HM Treasury.
4. The Premium Bonds prize fund rate funds a monthly prize draw for tax-free prizes. NS&I pays a yearly prize fund rate on Premium Bonds, which is equivalent to a yearly rate of interest. This equivalent amount of interest on Premium Bonds that are eligible for that month’s draw is then divided by 12 to give NS&I a prize fund for the monthly draw.
5. All Premium Bonds prizes are free of UK Income Tax and Capital Gains Tax.
6. Tax-free means the interest is exempt from UK Income Tax and Capital Gains Tax.
7. Information on our products can be found here.
8. For further information please contact the NS&I media team.