Summer boost for savers: NS&I increases Premium Bonds prize fund rate and Junior ISA interest rate
- Premium Bonds prize fund rate to increase to 3.70%, its highest rate in 15 years
- Junior ISA interest rate increased to 3.65%, benefitting 89,000 young savers
The Premium Bonds prize fund rate will reach a 15-year high from the July prize draw, with NS&I announcing that it will increase to 3.70% from 3.30%. The changes will see an additional £39 million in prizes available for Bondholders.
The odds of each £1 Premium Bonds winning a prize will remain at 24,000 to 1, with more chances each month for customers to win prizes worth between £50 and £100,000.
Alongside this, effective from today, NS&I has also increased the interest rate for young savers holding its Junior ISA, with the rate increasing to 3.65% from 3.40%. More than 89,000 savers aged under 18 will benefit.
The changes will ensure that NS&I’s products are priced appropriately when compared to the rest of the savings market. They also ensure that NS&I continues to balance the interests of savers, taxpayers and the broader financial services sector.
NS&I Chief Executive, Dax Harkins, 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 £374 million to winners in July with more higher value prizes, meaning that, each month, more lives will be changed by Premium Bonds.
“This is the second interest rate increase for Junior ISA this year, giving a boost to over 89,000 young savers as we continue to help inspire a stronger savings culture.”
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 |
Notes to editors
- 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.
- NS&I announced on 14 February 2023 that the Premium Bonds prize fund rate would increase from 3.15% to 3.30%, with the odds remaining 24,000 to 1. The changes were effective from the March 2023 prize draw and more information can be found here .
- NS&I increased the interest rate it pays on its Direct ISA on 16 May 2023. More information on this change can be found here .
- NS&I launched its Junior ISA on 15 August 2017. Full information on the product can be found here .
- AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year, the rate quoted and the AER will be the same.
- Tax-free means the interest is exempt from UK Income Tax and Capital Gains Tax.
- Information on NS&I’s on sale products can be found here .
- Information on NS&I’s off sale products can be found here .