Premium Bonds jackpot boost
A DOUBLE jackpot worth £2m is being launched for Premium Bonds investors. From August there will be not one , but two £1m prizes to be won, along with more than a million other tax-free prizes from a total fund of £72m.
National Savings and Investments (NS&I), says it is introducing the extra bumper prize because of the huge increase in the popularity of Bonds - customers have invested more money over the past six years than in the previous 42 years put together.
In April 1994, when the single £1m jackpot was introduced, the total amount invested was £4bn. It now stands at more than £26bn. And today, 23m people own Premium Bonds.
Much of this increase is due to the fact that customers can invest up to £30,000 and still get their money back when ever they choose. NS&I says that anyone holding the maximum number of Bonds can expect to win at least one prize each month ? in theory.
Alan Cook, NS&I chief executive, said: 'Premium Bonds have been going from strength to strength in recent years and we wanted to share this success with people who want an exciting way to save money.'
Cook admitted NS&I considered increasing the size of the jackpot rather than increasing the frequency of the draw. 'We looked at a number of options, one of which was increasing the size of the jackpot to £2m but the feedback we received was that customers were happy with £1m but wanted more opportunities to win,' he said. 'We are now creating 24maires a year instead of 12, so we are sure our bondholders will be happy with this.'
From August, the Premium Bond prize fund rate will also increase from 3.20% to 3.25% tax-free, equivalent to 5.42% for a higher-rate taxpayer and 4.06% for a basic-rate taxpayer. To be eligible for the August draw for a chance to win one of the two jackpots, new Bonds must be bought before the end of June.
