Interactive Investor

Premium Bonds: NS&I hikes prize rate

24th May 2022 10:54

Myron Jobson from interactive investor

The increase in NS&I Premium Bonds prize fund rate is long overdue, and it still pays to shop around for the best deal.

  • NS&I will increase the Premium Bonds prize fund rate from 1.00% to 1.40%, effective from the June 2022 Premium Bonds prize draw.
  • The odds of each £1 Premium Bond number winning a Premium Bonds prize will also change from 34,500 to 1 to 24,500 to 1.

Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The increase in the Premium Bond underlying prize fund rate was long overdue, having remained static for 18 months while the Bank of England base rate has risen tenfold over the period.

“Premium Bonds customers now have a chance to win a further 1.4 million tax-free prizes each month, but the fact remains that while some savers might hit the jackpot and win a large prize early on, others may save and wait for long periods for even a small return.

“Despite recent increases to NS&I’s savings rates, its products still lag behind many savings products available elsewhere, so it still pays to shop around for the best deal. There are very few places you can save at a higher rate than inflation which surged to a 40 year high of 9% last month, but you should still make your money work harder for you where you can.”

“Premium Bonds remain a tantalising proposition – particularly for those with very large amounts of savings who welcome the extra protection offered by Treasury.

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    Bonds and gilts