The Premium Bond prize fund rate increases to 4.65% from September draw – highest level since March 1999, adding £66 million to the prize fund.
Premium Bond holders odds are to improve to 21,000 to 1 from 22,000 to 1 – their best level since the April 2008 prize draw.
Interest rates for Income Bonds, Direct Saver, Direct ISA, Junior ISA and Investment Account to be increased from 18 August.
Millions of customers across the country will see a boost to their savings as NS&I announces upcoming interest rate increases across its variable products.
This includes the Premium Bond prize fund rate, which will increase to 4.65% from 4.00%, the highest level since March 1999.
Savers holding Income Bonds, Direct Saver, Direct ISA, Junior ISA and Investment Account will also benefit from the rate increases announced today.
The increase to the Premium Bonds prize fund rate will come into effect from the September 2023 prize draw, whilst customers holding Income Bonds, Direct Saver, Direct ISA, Junior ISA and Investment Account will see their savings boosted from 18 August.
NS&I Chief Executive, Dax Harkins, said:
“These upcoming increases show that we’re supporting savers up and down the country. Premium Bonds are one of the nation’s favourite savings products, so increasing the prize fund rate to its best level since 1999 and improving the odds means that more people will have the chance to win prizes each month.
“These rate increases will help ensure that our savings products remain attractive to customers, whilst ensuring that we continue to balance the needs of savers, taxpayers and the broader financial services sector.”
Highest Premium Bonds prize fund rate since 1999
From the September 2023 prize draw, the prize fund rate will increase to 4.65% from 4.00%, its highest level since March 1999. The odds will improve to 21,000 to 1, their best level since the April 2008 prize draw.
The change in odds will see an estimated extra £66 million added to the prize fund next month, with a potential prize pot of over £470 million. NS&I estimates that there will be 5,785,904 prizes up for grabs from September – an increase of more than 269,000 when compared to August 2023.
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Increases to other variable products
NS&I is also increasing interest rates on its Income Bonds, Direct Saver, Direct ISA, Junior ISA and Investment Account.
The interest rate paid to Direct Saver customers will increase to 3.65% from 3.40%, whilst the interest rate paid to Income Bonds will increase to 3.59% gross/3.65% AER from 3.40% gross/3.45% AER.
The rate paid on NS&I’s Direct ISA will increase to 3.00% tax-free from 2.40% tax-free. Young savers will also benefit, with the rate that NS&I pays on its Junior ISA increasing to 4.00% tax-free from 3.65% tax-free.
Also effective from 18 August, NS&I will be increasing the interest rate that it pays on its Investment Account to 1.00% from 0.85%.
On the face of it the rates are not as competitive as other Banks & Building Societies and it’s important to shop around and find the product and interest rate that is right for you, but of course only NS&I offer you the chance to become a millionaire!
