Premium Bond savers set for better payouts as prize rate hits 14-year high

Premium Bond savers are set for better payouts after National Savings & Investments (NS&I) raised its prize fund to 3.15 per cent starting from its draw next week.

This marks the fourth rise in the Premium Bond prize fund since interest rates started to climb just over a year ago.

The odds of each £1 Bond winning a prize will remain fixed at 24,000 to 1, but more prizes above £50 will be paid out.

The changes mean that the number of prizes worth £50 to £100,000 will increase from next month’s draw on February 2.

The 3.15 per cent prize rate is an average return and savers may do better or worse than this 

Some 870,000 NS&I savers will also benefit from a boost to its Direct Saver, Direct Isa and Income Bonds.

Meanwhile, around 80,000 under-18s will gain from a rise in their Junior Isa rate.

The rate of NS&I’s second-most popular account, Direct Saver, goes up to 2.6 per cent from 2.3 per cent.

Source of data and images: dailymail

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