More than 22 million Premium Bond holders are set to receive a boost in the upcoming July draw. National Savings & Investments has announced an increase in the prize fund rate for Premium Bonds to 3.80%, up from the previous 3.6% which was reduced to 3.3% in the last draw. Additionally, the odds of winning a prize are improving from 23,000 to one to 22,000 to one.
NS&I projects that the July draw will see approximately 322,000 extra prizes, with the total prize pot growing by over £60 million. This includes 12 more £100,000 prizes, 24 additional £50,000 prizes, and 49 extra £25,000 prizes. Lower-tier prizes are also expected to increase, with an estimated 2.8 million £25 prizes, half a million more than the current draw. Furthermore, the number of £50 and £100 prizes is anticipated to rise by around 200,000 to over 1.9 million.
In addition to the Premium Bonds changes, NS&I is raising the interest rates on several savings products. The Direct Saver rate is increasing from 3.05% to 3.45%, Income Bonds from 3.01% to 3.40%, Direct ISA to 3.80%, and Junior ISA to 3.70%.
NS&I’s retail director, Andrew Westhead, highlighted the adjustments, stating that the rate improvements align with market conditions and the organization’s financing goals. He emphasized the security and flexibility of Premium Bonds, noting the enhanced prize fund rate and odds in July will provide more winning opportunities for the 22 million Premium Bond holders.
While the allure of winning prizes drives many to hold Premium Bonds, it’s essential to note that the prize fund rate, which is not guaranteed, may be lower compared to top savings products. According to industry experts Moneyfacts, the average one-year fixed savings rate stands at 4.16%.
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