Premium Bonds

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Premium Bonds vs savings accounts 

This month the prize rate on Premium Bonds rose from 2.2% to 3%. The rate effectively outlines what sort of return you are likely to get if you have average luck.  

However, this is not the same as an interest rate on a savings account. You are not guaranteed to earn a 3% return on your Premium Bond holdings - ultimately the return comes down to how lucky you are, so you could get a far better return, or you may never win a prize at all.

National Savings & Investments (NS&I), which runs the popular Premium Bond accounts, has revealed that the jackpot winners are from South Yorkshire and Wiltshire. Nearly five million prizes are being paid out this month, totalling nearly £300 million - a new record.

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