25th July 2014
National Savings & Investments (NS&I) will make two premium bond savers millionaires next month after putting an extra £1 million into the prize pot.
The government-backed savings organisation has said it will distribute over 52,000 more tax-free premium bond prizes from August including an additional £1 million jackpot prize.
The increased number of prizes has been made following Budget announcements that increased the premium bond investment limit to £40,000 and the number of £1 million prizes from one to two.
NS&I has also announced that the prize fund rate will increase from 1.3% to 1.35% of the total number of premium bonds meaning on top of the extra £1 million prize, the number of smaller prizes in increase category will also increase or stay the same.
Since the investment limit was increased to £40,000 in March the total number invested in NS&I premium bonds has risen to over £1.3 billion meaning the prize pot increased from £51.9 million in July to £55.5 million in August.
As well as creating two millionaires, the August draw will give away three prizes of £100,000, 15 of £25,000 and 38 of £10,000.
Jane Platt, chief executive of NS&I, said: ‘Premium bonds are one of the nation’s favourite ways to save. Today’s news is good news all round as we’re able not just to add an additional jackpot prize of £1 million but also to increase the overall number of prizes.
‘Many of our savers have taken the opportunity to increase their savings in premium bonds and as a consequence increase their chances of winning.’
Over 21 million people hold premium bonds which, instead of paying interest, are entered into a monthly prize draw to win prizes ranging from £25 to £1 million.
Each month Blackpool-based random number generator ‘Ernie’ produces numbers that deliver the prizes.