NS&I has contacted Premium Bonds holders with "great news" as part of UK Savings Week, confirming that the prize fund rate has increased to 4.35% and the odds of winning are now better at 1 in 21,000.
Many customers have received emails highlighting how NS&I products can "help you save". The messages read: "Feeling inspired by UK Savings Week? We have great news for Premium Bonds holders: the Premium Bonds prize fund rate has increased to 4.35%, variable, and the odds of winning are now even better at 1 in 21,000!"
More tax-free prizes and rate rises
This means there were over 300,000 additional tax-free prizes available in this month's draw. The emails continue: "The good news doesn't stop with Premium Bonds though. There have also been rate increases across British Savings Bonds, Direct Saver and Income Bonds."
NS&I is keen to stress that there are "more tax-free prizes" and "more chances of winning".
Recent jackpot winners
The announcements follow reports that two lucky Premium Bonds holders, one based in London and another in Norwich, each secured a £1m jackpot earlier this month. The first £1 million winning Bond number this month is 484QT130447, held by a winner from Norwich, while the second £1 million jackpot Bond number is 659VC982054, belonging to a holder in London.
NS&I says it has played an essential role in helping people across the nation to save since 1861. Currently, more than 24 million customers choose to save with NS&I.
How Premium Bonds work
Premium Bonds are a tax-free savings option. Rather than accruing interest, every £1 Bond you hold is entered into a monthly prize draw, giving you the chance to win tax-free prizes ranging from £25 all the way up to £1 million. You can invest from as little as £25, up to the maximum limit of £50,000.
NS&I has confirmed that the odds of winning stand at 21,000 to 1 for each £1 Bond entered into the monthly prize draw, though this figure is variable. However, finance expert Martin Lewis believes that most people would achieve a considerably better return through standard savings accounts, if they do not deposit enough funds, given the odds involved. He argues that Premium Bonds are only truly worthwhile once you have a certain amount of money saved, typically in excess of £5,000.
