Premium Bonds holders more likely to win big as NS&I ups prize rate AGAIN

Customers with National Savings and Investments (NS&I) Premium Bonds are now more likely to win, as the firm is hiking its prize fund rate from 3 to 3.15 per cent.

The increase takes the Premium Bonds prize rate to a 14-year high, and marks the second hike in a month to NS&I's flagship savings deal.

NS&I increased the rate from 2.2 to 3 per cent on January 1, and the new 3.15 per cent rate applies to draws from February.

The 'prize rate' is effectively the Premium Bonds interest rate. Because Premium Bonds pay out every month following a lottery, there is no guaranteed interest rate - unlike other savings products.

Instead, NS&I uses a prize rate to let customers know, on average, how much money they might get back in a year from their Premium Bonds. Prizes start from 25 and run all the way up to 1million.

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HOW THIS IS MONEY CAN HELP

• Could you earn more interest? Check our best-buy savings rate tables

What are the odds of a Premium Bonds win?

Even with the latest update, the odds of each 1 bond winning a prize will remain fixed at 24,000 to 1.