A major change to the Premium Bonds prize draw means Bond holder will have a better chance of winning from next month.
The prize fund rate will increase from the current 3.6 percent to four percent from August, with the odds of winning to go up from 22,000 to one to 24,000 to one.
An extra 460,000 prizes are to be added to the winnings. NS&I’s chief executive, Dax Harkins, said: “I’m delighted that we’re able to improve the odds to the best they have been in almost 15 years, with more prizes, more excitement and more life changing wins for savers up and down the country.
“These changes will benefit millions of NS&I’s savers who have money in Premium Bonds, Direct Saver and Income Bonds.”
People with Premium Bonds can check if they have any unclaimed prizes from previous draws using the prize checker tool on the NS&I website.
READ MORE Pension warning as Britons risk £115,000 shortfall – how to retire comfortably
Each £1 Bond has an equal chance of winning a prize, with top prizes including two jackpot prizes for £1million.
Other large cash prizes include £50,000 and £10,000. It doesn’t matter how long ago a person purchased their Bond, as in the June draw, a Bond purchased 50 years ago won £50,000.
When purchasing Bonds, a person has to buy at least £25 worth of Bonds, and an individual can hold up to £50,000 in Bonds.
Savvy mum shares how she gets ‘best price’ when shopping after saving up to £5k[SAVINGS]
187,000 Britons owed £1billion after state pension error[STATE PENSION]
Chip increases interest on instant access saver to ‘excellent’ 4.26%[INTEREST RATES]
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Winners often choose to reinvest their winnings by buying more Bonds, to increase their chances of winning again.
Bond holders are entered into the monthly draw rather than getting an interest rate on their savings, as with a conventional savings account.
Many Britons have seen their interest rates on their savings increase over the past year and a half, as the base interest rate set by the Bank of England has continually increased.
The base rate is currently at five percent with some analysts predicting it will continue to climb and hit six percent.
From July 13, NS&I is also increasing the interest rates on several accounts. For the Investment Account, the rate will increase from 0.60 percent to 0.85 percent.
The group’s Direct Saver and Income Bonds’s rates will also be raised to 3.40 percent from 2.85 percent.
For the latest personal finance news, follow us on Twitter at @ExpressMoney_.
Source: Read Full Article