After National Savings & Investments (NS&I) increased its prize fund to 3.15 percent starting with its draw next week, Premium Bond savers can expect significant payouts.
Since interest rates began to rise just over a year ago, the Premium Bond prize fund has increased four times.
The most recent increase brings the total prize payouts to £314.3 million, an increase of £15 million from last month.
Each £1 Bond will continue to have a fixed 24,000 to 1 chance of winning.
The adjustments result in more prizes worth between £50 and £100,000 being awarded starting with the draw on February 2 of the following month.
Additionally, an increase to its Direct Saver, Direct Isa, and Income Bonds will benefit about 870,000 savers.
A rise in the Junior Isa rate will benefit about 80,000 individuals under the age of 18.
The rate for Direct Saver, the second-most popular account at NS&I, increases to 2.6% from 2.3%.
Since the account’s opening in March 2010, it has been paid at the highest rate.
This places the easy-access account just behind the highest payers for internet-based accounts and at a top rate for phone-based account management.
The interest rate on income bonds, which are popular with retirees because they are paid out monthly, has also increased to 2.6%.
The rate has increased since 2008. It paid only 0.35 percent a year ago, and for the 12 months ending in November 2021, it paid as little as 0.01 percent.
Its Direct Isa increases from 1.75 to 2.15 percent, and its Junior Isa increases from 2.7 to 3.4 percent. This is the government-backed bank’s most recent effort to reach its financing goals.
In its fiscal year that ends in March, state-owned savings bank NS&I expects to earn £6 billion, plus or minus $3 billion.
Up to the end of September, it had accumulated to a total of £3.4 billion.
According to the most recent data from the Bank of England, £281 million left the institution in November, the greatest outflow since March 2021 and the first since September.
“The reforms will give a nice boost for savers with additional Premium Bond rewards and some of the best interest rates in almost a decade,” said Ian Ackerley, chief executive of NS&I.
Punters are betting roughly £200 billion on Premium Bonds in the hopes of winning big.
4,989,652 prizes worth between £25 and £1 million are up for grabs in the draw for February.
When compared to last month’s draw, which featured 4,986,706 cash prizes, this represents an increase of 2,949 prizes.
In terms of additional money, the draw for the next month will have £15,145,525 available.
As part of NS&I’s goal to reduce lesser rewards while increasing larger ones, there will be fewer £25 cash prizes awarded.
The number of £25 prizes has decreased this time around from 2.6 million in this month’s draw to 2.37 million, a decrease of 241,741. From 3.5 million in the draw in December, the number has drastically decreased.
The rewards of £50 and £100, each up 121,077 to 1.28 million, will see the biggest rise for the next month.
There will be 12,573 total prizes paid out, including 37,719 £500 awards and 605 additional £1,000 prizes.
There will be 31 more £10,000 payouts, bringing the total to 590, while the number of £5,000 prizes will increase by 61 to 1,177.
The overall number of $25,000 awards rises by 12 to 236 while the number of £50,000 prize winners rises to 117 from 111.
The £100,000 reward increases by three to 59 each month, while the £1 million jackpot remains at two.
The top cash award of £1 million remains unchanged, with two winners eligible.