Tuesday, June 20, 2023
HomeFinancial PlanningPremium Bonds prize fund rate hiked to 3.7%

Premium Bonds prize fund rate hiked to 3.7%



NS&I has increased its Premium Bond prize fund rate from to 3.3% to 3.7%, the sixth prize increase in just over a year, and its highest rate in more than 15 years.

The change will add £39m to its July prize fund although the odds of each £1 Premium Bond winning a prize will remain at 24,000 to 1.

Meanwhile the Junior ISA interest rate will be increased from 3.4% to 3.65%, benefitting 89,000 young savers.

Dax Harkins NS&I chief executive, said: “This is now the sixth prize fund rate increase for Premium Bonds in just over a year, making it the highest it’s been in over 15 years. With the changes, we’re expecting to pay out more than £374m to winners in July with more higher value prizes.”

Sarah Coles, head of personal finance, Hargreaves Lansdown, said: “Premium Bonds have put on a burst of speed to catch up with the easy access market. They’d been biding their time since February, while the rest of the market pushed ahead, but this rise brings them back to winning form.

“The big change this month is that the number of £50 and £100 prizes has now overtaken the number of £25 prizes – with the smaller prizes being cut and the larger ones hiked. NS&I is aware that £25 isn’t what it once was, so it’s focusing its attention on slightly bigger prizes.

“There has been a bump in prizes all the way up to £100,000 – including 80 more £10,000 prizes and 160 more £5,000 prizes. It’s a sensible option – and will ensure that winning on the Premium Bonds remains an exciting day for more people.”

Current and new Premium Bonds prize fund rate and odds





Current prize fund rate

Current odds

New prize fund rate (from July 2023)

Odds from July 2023 (no change)

3.30% tax-free

24,000 to 1

3.70% tax-free

24,000 to 1


Number and value of Premium Bonds prizes
















Value of prizes in June 2023

Number of prizes in June 2023

Value of prizes in July 2023 (estimated)

Number of prizes in July 2023 (estimated)

£1,000,000

2

£1,000,000

2

£100,000

63

£100,000

71

£50,000

125

£50,000

141

£25,000

252

£25,000

284

£10,000

627

£10,000

707

£5,000

1,257

£5,000

1,417

£1,000

13,361

£1,000

14,960

£500

40,083

£500

44,880

£100

1,421,012

£100

1,744,226

£50

1,421,012

£50

1,744,226

£25

2,163,534

£25

1,503,501

Total

£334,047,650

Total

5,061,328

Total

£374,026,425

Total

5,054,415


Variable rate savings products





Product

Previous interest rate

Interest rate from today (20 June 2023)

Junior ISA

3.40% gross/AER

3.65% gross/AER

 




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