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Premium Bonds winners to rise in Autumn
- Published: Friday, 18 September 2009
Around half a million more Premium Bond holders are expected to win prizes from this October onwards. National Savings and Investments (NS&I), which runs Premium Bonds, will increase the prize fund rate, increasing the chances of becoming a winner.
What are the odds of winning a Premium Bond prize?
The odds of winning will change from 36,000 to 1, to 24,000 to 1. It is estimated this will create an extra 500,000 Premium Bond prizes to be distributed in the October prize draw.
Premium Bond holders with the maximum amount invested (£30,000) and average luck could win 15 tax-free prizes per year with the new odds.
How the changes affect the Premium Bond prize fund rate
|
|
September 2009 |
October 2009 (estimate) |
|---|---|---|
|
Total value of prizes |
£33,800,350 |
£52,471,603 |
|
Total number of prizes |
1,126,679 |
1,749,053 |
|
Prize fund rate |
1.00% |
1.50% |
|
Odds of winning a prize |
36,000 to 1 |
24,000 to 1 |
Why the rate is changing
NS&I reviews return rates on all its savings products monthly. It does this to balance the interests of its savers, the taxpayer and the stability of the wider financial services market.
Earlier in the year, influenced by a historically low Bank of England base rate, NS&I had reduced returns on its prizes. It even scrapped one of its two £1 million jackpots in April 2009. By August, however, NS&I had once more increased returns on several of its accounts.
Peter Cornish, Director of Customer Offer for NS&I, said: "Premium Bonds are hugely popular with our customers and winning prizes frequently is particularly important to them. These changes mean we can increase the frequency of an envelope from ERNIE dropping on their doormat."
