Premium Bonds odds boost

PREMIUM Bond holders have a better chance of winning a prize after the Government’s savings arm responded to the Bank of England’s interest rate rise by shortening the odds of a win.

National Savings & Investments has said for the first time in a decade it will increase returns, including the amounts of Premium Bond prizes, from Dec 1.

The change means the odds of winning a Premium Bond prize with a single bond will improve from 30,000 to 1 to 24,500 to 1, the best they have been since 2009.

Around 21 million savers have Premium Bonds, which do not receive interest but are put into a draw each month with the chance of winning prizes ranging from £25 to £1million.

Experts said the change means that Premium Bonds are now offering a better deal than most savings accounts. Premium Bonds’ “effective” interest rate can be calculated based on the chances of winning a prize. The effective prize fund rate will now rise to 1.4 per cent, from its current 1.15 per cent.