Half a million more prizes on NS&I bonds

ABOUT 21 million Premium Bond holders have the chance to earn more prizes from next month’s draw with shorter odds.

The amount paid out yearly from the £71 billion held in Premium Bonds at National Savings & Investments (NS&I) will rise to 1.4 pc from 1.15 pc from next month.

It is the highest rate since the Premium Bond prize fund was cut from 1.5 pc in August 2013.

The odds of winning a tax-free monthly prize will shorten to 24,500 to 1, down from 30,000 to 1.

NS&I expects to pay £83 million in 2.9 million prizes next month, up from £68 million and 2.37 million prizes this month.

The vast number of extra prizes — 527,926 out of 530,361 — will be for £25, the lowest on offer. These prizes account for £74.8 million, or 90 pc, of the monthly payouts.

There will be 22,982 prizes apiece of £50 and £100, and 1,660 at £1,000.

On top, there will be 87 prizes worth £5,000, 42 at £10,000, and 18 at £25,000 — plus nine of £50,000 and four of £100,000. There will still be two £1 million jackpots.

If you buy bonds this month, they will not qualify to enter until the January draw. Anyone aged 16 or over can buy bonds, with a minimum or maximum holding of £100 and £50,000. You can buy them for your children and grandchildren who are under 16.