PREMIUM Bond customers could be in for more cash pay outs next year because of a rate rise.
National Savings and Investments (NS&I) Premium Bonds feature a monthly lottery-style draw which offers two jackpot wins of £1million.
AlamyPremium bonds put customers in the running for high-value prizes[/caption]
PA:Press AssociationAn estimated additional £80million high-value prizes will come from the rate rise[/caption]
The premium rate will rise from 2.2 to 3 per cent in January 2023, offering higher-value prizes for grabs.
An estimated additional £80million high-value prizes will come from this rate rise.
Yet the odds of winning a high-end prize remain low for the average user at 24,000 to one.
According to Martin Lewis’ MoneySavingExpert, the 3 per cent Premium Bond prize-fund rate out-paying today’s top easy-access savings rate of 2.85 per cent.
However, there will be more than three times as many prizes between £5,000 and £100,000 available.
Next year is proving to be lucky for investors: three times as many prizes between £5,000 and £100,000 will be available.
There will be 56 chances to win £100,000, and the January 2023 prize fund will reach an expected £299,572,750.
Customers with Direct Saver and Income Bonds will see a higher interest rates on their investments, with a rate of up to 2.3 per cent.
NS&I chief executive Ian Ackerley said: “The New Year increase to the Premium Bonds prize fund rate will mean that customers will have seen the prize fund rate triple in less than a year.
“This means a bigger prize pot and more higher value prizes for our customers – a great way to start 2023.”
If a customer wants to invest, the minimum amount available to buy is £25 for one-off purchases and monthly standing orders, and the maximum is £50,000.
Premium Bonds are a unique way to save: they don’t offer interest.
Each £1 you put in Premium Bonds is an entry in to the monthly prize draw.
Premium Bonds are government-backed, so your money is safe and there’s no risk of losing cash.
In 2019, NS&I said there are over 1.5million premium bond prizes yet to be claimed by their rightful owners.
AlamyThe bonds are popular as they keep money safe, and there’s no risk of losing cash[/caption] Read More