Millions of Premium Bond holders will have a better chance of winning from next month as NS&I is boosting the prize fund, following last week’s Bank of England base rate rise.
The change means that from Friday 1 December your odds of winning something each month with each £1 bond will improve from 30,000 to 1 to 24,500 to 1.
Premium Bonds are effectively a savings account you can put money into, where instead of savers earning interest, tax-free prizes are awarded in a monthly prize draw. This means that there is no guarantee you’ll get any return on your money.
Prizes range from £25 to £1 million, and as of 1st December the estimated number of Premium Bond prizes will rise, from 2,375,944 in November to 2,906,305. The total value of prizes will also rise from £68,308,325 this month to an estimated £83,071,775 in December.
It’s worth bearing in mind that the nearest thing Premium Bonds have to an interest rate is their annual prize rate, which means ‘on average’ the return will rise from 1.15% to 1.4% from 1 December, but in reality you could win nothing – or the £million !
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