More than 22 million individuals holding Premium Bonds are set to receive a boost in the upcoming July draw, as confirmed by National Savings & Investments. The prize fund rate for Premium Bonds will see an increase to 3.80%, which is akin to an interest rate for a savings account and was previously reduced from 3.6% to 3.3% in the last draw.
Simultaneously, the odds of winning a prize in the Premium Bonds will improve from 23,000 to one to 22,000 to one. NS&I estimates that the July draw will see approximately 322,000 additional prizes, with the total prize pot growing by over £60 million. This includes an expected increase in high-value prizes like 12 additional £100,000 prizes, 24 more £50,000 prizes, and an extra 49 £25,000 prizes.
Further down the prize tiers, around 2.8 million £25 prizes are anticipated, half a million more than the current draw, while the number of £50 and £100 prizes is expected to rise by over 200,000 to exceed 1.9 million.
In addition, the state-backed bank has announced an increase in interest rates on various savings products, such as the Direct Saver, Income Bonds, Direct ISA, and Junior ISA, reflecting changes in the savings market.
Andrew Westhead, NS&I retail director, noted the improvements, emphasizing the security, flexibility, and increased winning opportunities for Premium Bond holders. While the allure of winning prizes drives many to hold Premium Bonds, the prize fund rate, though not guaranteed, may be lower compared to top-performing savings products, according to industry experts Moneyfacts.
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