NS&I has reached out to Premium Bonds holders by email to announce that the "good news doesn't stop" following last month's confirmation of enhanced rates. As part of UK Savings Week, customers have received emails emphasising how NS&I products can "help you save".
The communications state: "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!" This means there were over 300,000 more tax-free prizes in this month's draw.
Rate increases across other products
The emails add: "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 eager to highlight that there are "more tax-free prizes" and "more chances of winning".
The notifications come after news that two fortunate Premium Bonds holders, one living in London and another in Norwich, each bagged 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.
How Premium Bonds work
NS&I states it has fulfilled a vital function in supporting people throughout the country to save since 1861. Today, over 24 million customers opt to save with NS&I. Premium Bonds are a tax-free saving option. Rather than generating interest, every £1 Bond you own enters a monthly prize draw, offering you the opportunity to scoop tax-free prizes from £25 right up to £1 million.
You can put in from £25, rising to the maximum limit of £50,000. The chances of winning stand at 21,000 to 1 for each £1 Bond in the monthly prize draw, variable, NS&I has confirmed. However, finance guru Martin Lewis reckons most folk would see a far better return with ordinary savings accounts, if they don't deposit sufficient funds, due to the odds. He says that Premium Bonds are only worthwhile if you've got a certain sum of money, typically above £5,000.
