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600,000 more Premium Bond prizes as NS&I raises savings rates
"NS&I has increased the size of the prize fund for its popular Premium Bonds and will now hand out £83m to savers each month following the Bank of England's decision to increase interest rates.
The Government-backed provider said it would increase savings returns, including the amount paid in Premium Bond prizes, from Dec 1. The change means that the odds of winning a Premium Bond prize with a single bond will improve from 30,000 to 1 to 24,500 to 1.
The 21 million holders of Premium Bonds do not receive any interest but are put into a draw each month with the chance to win up to £1m.
However, an "effective" interest rate can be calculated based on the chances of winning a prize. The effective prize fund rate will now rise to 1.4pc, from its current 1.15pc.
In order to raise the rate, NS&I has increased the number of prizes paid. The number of prizes paid out each month will increase from 2.3 million to about 2.9 million, totaling £83m.
There will still be only two £1m prizes each month, but there will be four chances to win £100,000 each month, up from three. There will also be 87 £5,000 prizes a month, up from 57. See the full changes below."
Source: 600,000 more Premium Bond prizes as NS&I raises savings rates
This time next year
"NS&I has increased the size of the prize fund for its popular Premium Bonds and will now hand out £83m to savers each month following the Bank of England's decision to increase interest rates.
The Government-backed provider said it would increase savings returns, including the amount paid in Premium Bond prizes, from Dec 1. The change means that the odds of winning a Premium Bond prize with a single bond will improve from 30,000 to 1 to 24,500 to 1.
The 21 million holders of Premium Bonds do not receive any interest but are put into a draw each month with the chance to win up to £1m.
However, an "effective" interest rate can be calculated based on the chances of winning a prize. The effective prize fund rate will now rise to 1.4pc, from its current 1.15pc.
In order to raise the rate, NS&I has increased the number of prizes paid. The number of prizes paid out each month will increase from 2.3 million to about 2.9 million, totaling £83m.
There will still be only two £1m prizes each month, but there will be four chances to win £100,000 each month, up from three. There will also be 87 £5,000 prizes a month, up from 57. See the full changes below."
Source: 600,000 more Premium Bond prizes as NS&I raises savings rates
This time next year
The Family Building Society offers two types of "Brexit Bond", both paying a guaranteed rate of 1pc per year until May 2 2019.
Those who choose the "Optimist" Brexit Bond will earn the 2pc bonus if the pound strengthens against the euro between the start date of March 28 this year and March 29, 2019, the date the UK is due to leave the EU.
The bonus, if applicable, will be applied on April 30 2019 to the whole deposit.
Savers could earn 3pc in year two if they choose the correct Brexit Bond CREDIT: PA
However, those who believe the pound will weaken as a result of Brexit can opt for the "Pessimist" bond. If the pound buys fewer euros on March 29, 2019, than at the end of March this year savers will get the bonus.
The accounts are available from June 14 and can be opened with £10,000 online, by post or at the building society's Epsom branch in Surrey. The exchange rate used is as published by the Bank of England.
Those who choose the "Optimist" Brexit Bond will earn the 2pc bonus if the pound strengthens against the euro between the start date of March 28 this year and March 29, 2019, the date the UK is due to leave the EU.
The bonus, if applicable, will be applied on April 30 2019 to the whole deposit.
Savers could earn 3pc in year two if they choose the correct Brexit Bond CREDIT: PA
However, those who believe the pound will weaken as a result of Brexit can opt for the "Pessimist" bond. If the pound buys fewer euros on March 29, 2019, than at the end of March this year savers will get the bonus.
The accounts are available from June 14 and can be opened with £10,000 online, by post or at the building society's Epsom branch in Surrey. The exchange rate used is as published by the Bank of England.
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