Premium Bond Returns Increase

Good news for Premium Bond holders from next month. NS&I has announced a Premium Bond Returns Increase that means an extra £39m million will be available in the July Premium Bond prize draw. This ups the prize fund from 3.30% to 3.70%.

The odds will remain the same, where each Premium Bond will have a 1 in 24,000 chance of winning, but there ill be a greater chance of winning the prizes between £50 and £100,000.

The big prize of £1m though will continue to go to just two lucky holders per month.

While a Premium Bond Returns Increase will no doubt be welcomed by Premium Bond holders, its worth noting that 3.7% interest rate is by no means a the best return you can get for you money. Indeed, taking the effects of inflation into account, unless you’re lucky enough to win one of the larger prizes at some point, your money may well be better off put elsewhere. Why not pop over to MoneySupermarket and compare the best saving accounts rates.