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Media centre /
Press releaseIT’S A DOUBLE RATE RISE FOR PREMIUM BONDS!01 October 2004Christmas has come early for the 23 million people in the UK who hold Premium Bonds with the news today that there will be two increases to the prize fund rate on 1 October, lifting it from 2.80% p.a. to 3.20% p.a, and boosting the value of the prize fund by more than £4 million to £65 million. Originally, the prize fund rate was due to go up to 3.00% p.a. on 1 October and then again to 3.20% p.a. on 1 December, but a change to the Premium Bond regulations means National Savings and Investments (NS&I), which runs Premium Bonds, no longer has to give three months notice when the prize fund is due to change. It also means NS&I is able to bring forward the December rate increase to October. More prizes The double rate increase also means NS&I can increase the total value of prizes available to give away in October and will double the number of £100 prizes to more than 160,000 in response to feedback from customers who say they like to win smaller prizes more often. NS&I will also give away an extra £100,000 prize – taking the total to five – and one more £25,000 prize, taking the total to 18. Four more £10,000 prizes will also be awarded, taking the total to 18. More than 1 million prizes worth over £65 million will be given away in October’s draw. Before December’s increase was brought forward to October, the prize fund pot was an estimated £61 million. The prize fund rate The Premium Bond prize fund rate is variable and it is reviewed whenever there are movements in the Bank of England base rate. The base rate increase in June meant the Premium Bond prize fund rate would increase on 1 October from 2.80% to 3.00%. Under the old three month notice rule, the base rate increase in August would have resulted in the Premium Bond prize fund rate increasing to 3.20% on 1 December but, under the new rules, this change will now occur on 1 October. The odds of winning a prize will be 24,000 to 1 each month. Gill Cattanach, NS&I marketing director, said: “NS&I is always trying to improve what it offers customers and removing the old-fashioned three month notice period brings Premium Bonds into line with the majority of our other savings and investments. This means customers will benefit sooner from the rate increase in the prize fund following the recent increase in the Bank of England base rate.” Premium Bonds legislation Premium Bonds were introduced in 1956 and are governed by the Premium Savings Bonds Regulations 1976 and their terms and conditions which were amended in 2004 to remove the three month notice period. Premium Bonds fast facts
ENDS
Notes to editors A full history of Premium Bonds and a wide selection of photography is available from NS&I. Contact the media team for more information. NS&I is the exclusive sponsor of IX Investor 04, a one-day exhibition at London Olympia on Saturday 23 October 2004, designed to help private investors get the best return on their investments. More information at www.ix-expo.com. NS&I media team
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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