As of Monday 1st June, National Savings & Investment (NS&I) have increased the cap on Premium Bonds by £10,000 to a total of £50,000. This is the second time in two years in which NS&I have increased the total cap on the amount savers can invest. As a result of the increase, it is predicted that savers are expected to buy billions more bonds.
Premium Bonds are Britain's most popular savings product. Instead of paying interest, each month ERNIE, the Blackpool-based random number generator, produces numbers that deliver prizes ranging from £25 up to the £1m jackpot. Last month, ERNIE paid out more than 2 million prizes, totalling £60m in value.
The increase in the Premium Bond limit is also joined by changes to the way that parents or guardians can buy Premium Bonds for their children. They can now apply online or by phone for the first time. Previously, it was only possible to purchase bonds for those aged under-16 by post or at a Post Office counter.
If you're looking to invest in Premium Bonds, please note that they do not deliver guaranteed returns and the odds of winning for each £1 bond is 26,000 to 1.