NS&I TO INCREASE PREMIUM BONDS PRIZE FUND RATE
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.
The increased prize fund rate will see an estimated additional 1.4 million prizes paid out in the June Premium Bonds prize draw.
Economic Secretary to the Treasury, John Glen, said: “Premium Bonds have offered the public an alternative way to save since they were first introduced in 1956, and next week marks 65 years since ERNIE drew the first Premium Bonds prize winners.
“I’m delighted to see NS&I raise the prize fund rate on Premium Bonds, which will see an additional 1.4 million prizes worth £40 million being returned to savers each month – helping to put money in the pockets of the nation’s savers.”
NS&I Chief Executive, Ian Ackerley, said: “The new prize fund rate ensures that Premium Bonds are priced appropriately when compared to the interest rates offered by our competitors. It also ensures that we continue to balance the interests of savers, taxpayers and the broader financial services sector.
“Premium Bonds customers will benefit from the chance to win a further 1.4 million tax-free prizes each month, as well as the peace of mind that customers get with 100% of their NS&I savings being backed by HM Treasury.”
Current and new prize fund rate and odds
|
Current prize fund rate |
Current odds |
New prize fund rate (from June 2022) |
New odds (from June 2022) |
|
1.00% tax-free |
34,500 to 1 |
1.40% tax-free |
24,500 to 1 |
Number and value of Premium Bonds prizes
|
Value of prizes in May 2022 |
Number of prizes in May 2022 |
Value of prizes in June 2022 (estimated) |
Number of prizes in June 2022 (estimated) |
|
£1,000,000 |
2 |
£1,000,000 |
2 |
|
£100,000 |
6 |
£100,000 |
10 |
|
£50,000 |
11 |
£50,000 |
19 |
|
£25,000 |
24 |
£25,000 |
40 |
|
£10,000 |
58 |
£10,000 |
98 |
|
£5,000 |
116 |
£5,000 |
196 |
|
£1,000 |
1,963 |
£1,000 |
2,764 |
|
£500 |
5,889 |
£500 |
8,292 |
|
£100 |
31,907 |
£100 |
37,922 |
|
£50 |
31,907 |
£50 |
37,922 |
|
£25 |
3,343,185 |
£25 |
4,748,097 |
|
Total: £98,183,175 |
Total 3,415,068 |
Total £138,210,725 |
Total 4,835,362 |
–Ends–
Notes to Editors
1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security as NS&I is backed by HM Treasury.
2. The Premium Bonds prize fund rate funds a monthly prize draw for tax-free prizes. NS&I pays a yearly prize fund rate on Premium Bonds, which is equivalent to a yearly rate of interest. This equivalent amount of interest on Premium Bonds that are eligible for that month’s draw is then divided by 12 to give NS&I a prize fund for the monthly draw.
3. All Premium Bonds prizes are free of UK Income Tax and Capital Gains Tax.
4. Tax-free means the interest is exempt from UK Income Tax and Capital Gains Tax.
5. Information on our products can be found here .
6. For further information please contact the NS&I media team.
NS&I media team
Sam Faulkner 07814 859 160 sam.faulkner@nsandi.com
Sara Brown 07583 139 113 sara.brown@nsandi.com
Jonty Alone 020 7932 6633 jonty.alone@nsandi.com
Out of hours: All numbers above diverted to staff mobile phones
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