Premium bond prize fund pot set to increase again

National Savings and Investments (NS&I) have announced another increase to their Premium Bond customers, who are set to get a welcome New Year boost, with an extra £80 million in prizes from the January price draw, with an increase to the prize fund rate from 2.20% to 3.00%.

In October, our articledetailed the increased prize fund rate from 1.40% to 2.20%, which added an expected £76million to the prize fund.

Alongside this, effective from 13^thDecember 2022, the NS&I have also increased interest rates across several of its other variable products.

The New Year increase to the Premium Bond prize fund will mean that customers will have seen the prize fund rate triple in less than a year.  This means a bigger prize pot and more higher value prizes for their customers.

Many investors include premium bonds in their portfolio as they are a source of diversification to help reduce volatility and overall portfolio risk.