Overview
- NS&I confirmed on Saturday that from the July draw it will add more than 322,000 prizes and increase the monthly prize pot by over £60 million, a change that marginally improves holders’ chances of winning.
- Holders are urged to check how prize payments are set up because bank transfers normally arrive by the seventh working day while cheque prizes expire after three months for security reasons and must be cashed or reissued.
- Personal finance experts welcomed the July increase but warned savers not to rely solely on Premium Bonds and suggested using other accounts such as ISAs, fixed-rate bonds, regular savers or easy-access accounts for steadier returns.
- NS&I’s prize fund is routinely adjusted to follow wider interest-rate moves, rising when rates climb and falling when they drop, which is how the bond odds are linked to broader market conditions.
- Research shows long-term Premium Bonds holders can face a significant opportunity cost compared with investing in stocks or funds, so savers should weigh the product’s tax-free, prize-based appeal against potential real returns.