NS&I to increase the Premium Bond prize rate to 3.7% – here's all you need to know

MSE_Chris_O

NS&I will increase its Premium Bond prize-fund rate to 3.7% from 3.3% for its July 2023 draw and beyond, with an extra £39 million in higher-value prizes up for grabs. The odds of winning will remain the same at 24,000-to-one, but there will more prizes between £50 and £100,000 available.

Read the full story here:

NS&I to increase the Premium Bond prize rate to 3.7% – here's all you need to know

If you haven’t already, join the forum to reply.

ColdIron

Whoops!

Sorry, you’ve landed on a page that doesn’t exist. If you found yourself here after clicking a link on this site please email us on: BrokenLink@MoneySavingExpert.com and let us know which page you clicked the link from and we’ll sort it out.

SJMALBA

https://nsandi-corporate.com/news-research/news/summer-boost-savers-nsi-increases-premium-bonds-prize-fund-rate-and-junior-isa

MSE_James

Hi @ColdIron  - we've fixed the link in @MSE_Chris_O's post above, and it now points to

https://www.moneysavingexpert.com/news/2023/06/nsi-premium-bond-rate/

as intended

eskbanker

A subheading within the article states that:

The number of prizes will rise but your odds of winning are still relatively low

but this isn't borne out by the tabulated prize breakdown further down.

In actual fact, the number of prizes remains constant relative to the number of bonds in circulation, and hence the 24,000 to one chances of winning continuing, but the small drop in July's total eligible bonds means that the total number of prizes reduces in the first draw under the new regime....

Eirambler

What's the effective rate now, excluding the high value prizes - around 2.95% or so?

eskbanker

Eirambler said:

What's the effective rate now, excluding the high value prizes - around 2.95% or so?

Yes, the prizes of up to £100 continue to account for 80% of the total prize value, although the >£100 ones are now 1.24% of total number of prizes, up from 1.1%.

nrmsmith

Looks like the overall number of prizes drops again in July?

Also, more importantly are they also increasing their direct isa and direct saver rates?  Still down really low last time I looked.

eskbanker

nrmsmith said:

Looks like the overall number of prizes drops again in July?

Not sure what you mean by 'again' here, but yes, as above, the number of prizes in the next draw will be slightly lower than the last one, simply by virtue of fewer bonds being eligible.

nrmsmith said:

Also, more importantly are they also increasing their direct isa and direct saver rates?  Still down really low last time I looked.

No changes to these in today's announcement.

nrmsmith

again = each of the last 2 or 3 increases has resulted in an actual lowering of the total number of prizes

Sg28

nrmsmith said:

again = each of the last 2 or 3 increases has resulted in an actual lowering of the total number of prizes

It doesnt actually matter, its still 24000/1.