From 1 September this year, premium bond prizes will make history. The number of monthly prizes will rise above 1 million for the first time ever. The prize fund will increase from 2.6% to 2.8%, meaning that the odds of winning will reduce from 27,500 to 1 to 24,000 to 1.
The maximum investment into premium bonds is £30,000. This means that if a person invests the maximum, an average of 15 prizes each year could be won.
Our View
Premium bonds seem to be back in fashion at the moment but beware of investing the maximum if you want some decent interest each month. Many people invest, thinking they will win thousands each month. The reality is that most people win £50 every other month or so. This could be a lot less than you could get in a regular savings account.
So, if you are after the £million, you might have to wait a while!