600000 more Premium Bond prizes as NS&I raises savings rates

Cornelia Mascio
Novembre 9, 2017

Earlier, UK state-owned bank National Savings & Investments (NS&I) said it would pass on the full base rate rise onto consumers and will shorten the odds on Premium Bond prizes.

From December 1, the Direct Isa rate will increase from 0.75 per cent to 1 per cent, the Direct Saver will rise from 0.7 per cent to 0.95 per cent and the Income Bonds rate will go up from 0.75 per cent to 1 per cent.

In the wake of the Bank of England's decision to raise the base rate by 0.25 per cent to 0.5 per cent, the government-backed provider has announced it will increase both the number of prizes and the chance of winning with its Premium Bond prize draw.

The number of prizes paid out each month will also increase from 2.3 million to around 2.9 million.

Premium Bonds are a lottery - you could win nothing at all, which means inflation could be eroding the real value of your cash over time.

The massively popular Premium bonds aren't like normal savings accounts as they don't pay interest. NS&I confirmed this is the highest number of prizes in any monthly Premium Bonds prize draw to date.

What's more, there will also be an increase in the number of big-value prizes. The prizes are tax-free and another bonus of saving with NS&I is that all products offer 100% capital security as it's backed by the Treasury.

In what's been a fairly lacklustre week in terms of savings rates following last week's base rate announcement, NS&I has stepped up to the plate to announce that it's passing on the full 0.25% increase to its variable rate customers.

However Coles added that even after all of these announcements, savers should still check the rate they're receiving against the most competitive in the market. "Over the past few days we have seen the release of some highly competitive fixed rate deals - and the rates available on the most competitive one-year bonds are edging ever-closer to 2%".

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