Investors can put a further £10,000 into premium bonds as of this week, as the second increase in the investment limit in two years is ushered in, Jane Platt has announced.
“Last year we saw a huge level of interest when we raised the limit. This latest increase to £50,000 is good for customers who want to save more and have extra chances to win a tax-free prize,” NS&I’s chief executive said.
The change follows the announcement by the chancellor in the 2014 Budget that an increase would help people save.
Harriet Baldwin, economic secretary to the Treasury, said: “Our long-term plan is all about supporting savers and boosting working people’s financial security at all stages of life.”
According to NS&I, the amount invested in bonds has increased by 169 per cent since 2003, when it was increased from £20,000 to £30,000 for individual savers, taking the total from £19.7bn to £53bn.
Meanwhile, NS&I announced that the two top £1m prizewinners in this month’s draw were a woman living in Wirral who had total holdings of £30,000, with a bond bought in November 2007, and a woman living overseas, with a bond bought in January 2010 with holdings of £21,000.
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Gary Dunn, partner at Lancashire-based True Potential Wealth Management, said: “A lot of people do put the maximum they can into NS&I premium bonds. They work on the premise that the possibility of winning a prize each month outdoes current interest rates – and they have a chance of winning the top prize. I can see pensioners using their tax-free allowance to buy them.”
