NS&I emails Premium Bond holders about higher prize rate and extra tax-free prizes
National Savings & Investments has emailed Premium Bond customers to announce a rise in the prize-fund rate to 4.35% and better odds of winning, resulting in more than 300,000 additional tax-free prizes this month.
NS&I used the UK Savings Week campaign to inform Premium Bond holders that the prize-fund rate has been lifted to a variable 4.35%, improving the chance of winning to 1 in 21,000 per £1 bond. This adjustment generated more than 300,000 additional tax-free prizes in one outlet monthly draw. The email also highlighted parallel rate hikes across other NS&I savings products, including British Savings Bonds, Direct Saver and Income Bonds.
The announcement follows reports of two £1 million jackpot wins this month, credited to bonds numbered 484QT130447 (Norwich) and 659VC982054 (London). NS&I, which has served savers since 1861, now supports over 24 million customers. Finance commentator Martin Lewis warned that the bonds only offer a competitive return for larger balances, typically above £5,000.
Why it matters
The higher prize rate and improved odds could affect millions of UK savers choosing tax-free alternatives to traditional interest accounts.
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