The prize fund rate for Premium Bonds is to increase from 3.15 percent to 3.3 percent for the March 2023 draw, NS&I announced today. The rate boost means £15million in prizes have been added to the fund.

The chances of winning a prize in the Premium Bonds draw remain at 24,000 to one.

NS&I has also increased the interest rates on some of its savings accounts, effective from today, with the rate on the Direct Saver and Income Bonds both increasing to 2.85 percent.

The Premium Bonds changes mean in the March 2023 draw, there will be around 60 prizes worth £100,000 up for grabs, as well as around 120 prizes for £50,000.

Almost 250 prizes worth £25,000 will be on offer as well as more than 13,000 prizes for £1,000.

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Ian Ackerley, chief executive of NS&I, said: “Premium Bonds are one of the nation’s most loved ways to save, giving people the monthly anticipation of a potential win while knowing their money is 100 percent safe.

“We’re also giving a Valentine’s Day boost to our Direct Saver and Income Bonds customers who will see their interest rates rise from today.

“We are committed to ensuring our products remain attractive and our customers can continue to save with confidence.

“Today’s changes mean that we continue to balance the interests of savers, taxpayers and the broader financial services sector.”

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“I own a travel business and during Covid, life was very, very hard. Any savings that I’d got, I used, so there was a period of time when I didn’t have any and now I have some savings again.”

An individual has to buy at least £25 worth of Premium Bonds from NS&I when purchasing the Bonds, but each £1 Bond has an equal chance of winning a prize.

Ms Harris said there is a false myth that newer Bonds have a better chance of winning than older ones.

She explained: “It’s definitely a myth that your newer Bonds or your older Bonds perform better.

“When you win, you are able to check which Bonds have won for you, whether they were your oldest or your newest.

“There are a lot of people that believe that your older Bonds don’t perform as well, but I’ve had a mixture of newer and older ones.

“However, when I’ve cashed them in, I do always cash in the older Bonds rather than the newer ones.”