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NS&I raises Premium Bonds prize fund rate for September draw
The prize fund rate increases from 3.8% to 4.35%, lifting the odds per £1 bond number and growing the September prize pot by about £63 million to £497 million.
Guardian Business reports that National Savings and Investments is increasing the Premium Bonds prize fund rate for the September monthly draw, giving holders more prize chances.
NS&I is raising the prize fund rate from 3.8% to 4.35% a year, following a prior increase from 3.3% to 3.8% effective from the July draw. As a result, the odds of winning with each £1 bond number improve from 22,000 to 1 to 21,000 to 1.
The outlet says NS&I estimates there will be 308,000 more prizes in September than in the prior draw, with the overall prize pot rising by about £63 million to £497 million. It also said the update boosts higher value prizes, including £100,000 and £50,000 payouts, while cutting the number of £25 prizes from just under 2.3 million to about 1.7 million.
Guardian Business notes that Premium Bonds returns are tax free, with the article illustrating that holding the maximum £50,000 and winning the equivalent of 4.35% would amount to £2,175 tax free. It also highlights that Premium Bonds do not pay interest, which can leave them more exposed to inflation, and there is no guarantee of any winnings.