Customers will be able to invest a further £10,000 in Premium Bonds from Monday 1 June 2015 after the maximum holding limit was increased from £40,000 to £50,000.
The change follows the Chancellor’s announcement in the 2014 Budget that NS&I would help support savers by increasing the Premium Bonds investment limit. It comes 12 months after the Premium Bonds limit was increased from £30,000 to £40,000 with a second £1 million prize winner also being introduced from August 2014.
The total amount invested in Premium Bonds has increased from £19.7 billion in 2003 (when the previous £20,000 limit was increased to £30,000) to over £53 billion today – an increase of 169%. The total Investment value has increased by £6bn since last June and NS&I expect the total amount will increase again following changes on 1 June this year.
Premium Bonds remain popular with savers for a variety of reasons: they offer a chance to win tax-free prizes, they can be easily bought and managed online or by phone and due to the excitement that ERNIE brings each month when he creates two £1 million jackpot winning Bond numbers and delivers over 2 million other prizes from £25 to £100,000 in value, across the country.
In addition to the changes to the Premium Bonds limit, from Monday 1 June 2015 parents or legal guardians will now have the opportunity to purchase Premium Bonds for their children directly online or by phone for the first time.
Previously parents could only buy by post, or at a Post Office branch, but they can now purchase Bonds for their children (so long as they are under 16) through the internet or over the phone.
Jane Platt, NS&I’s Chief Executive said: “Premium Bonds are one of the nation’s favourite ways to save. Last year we saw a huge level of interest when we raised the limit from £30,000 to £40,000 and this latest increase to £50,000 is further good news for customers who want save more and to give themselves extra chances to win a tax-free prize.”
“Premium Bonds have been with us for almost 60 years and the process of buying them, how much you can invest and even the Bond record itself has changed a lot in that time – but ERNIE and the randomness of how our winners are picked is timeless and well-loved.