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Two new millionaires a month from August, says NS&I Two new millionaires a month from August, says NS&I
(about 1 hour later)
A second £1m premium bond prize is to be launched from August, National Savings and Investments (NS&I) has confirmed. A second £1m premium bond jackpot is to be launched from August, National Savings and Investments (NS&I) has confirmed.
As a result, two people will become millionaires every month, instead of the current single winner.As a result, two people will become millionaires every month, instead of the current single winner.
The move was first announced by the Chancellor, George Osborne, in his March budget.The move was first announced by the Chancellor, George Osborne, in his March budget.
From Sunday 1 June, bondholders will also be able to own a maximum of £40,000, up from £30,000 now.From Sunday 1 June, bondholders will also be able to own a maximum of £40,000, up from £30,000 now.
From next year, the maximum premium bond holding will be increased further, to £50,000.From next year, the maximum premium bond holding will be increased further, to £50,000.
"Raising the maximum amount that can be invested is good news for customers, because the more they invest, the greater their chance of winning a tax-free prize," said Julian Hynd, the retail director of NS&I."Raising the maximum amount that can be invested is good news for customers, because the more they invest, the greater their chance of winning a tax-free prize," said Julian Hynd, the retail director of NS&I.
A second £1m jackpot was previously introduced in August 2005, but was discontinued three and a half years later, in April 2009.
IncreaseIncrease
More than 21 million people own premium bonds, while 600,000 hold the maximum of £30,000.More than 21 million people own premium bonds, while 600,000 hold the maximum of £30,000.
The average return on premium bonds - ie, the amount paid out in prize money - is 1.3%, which is tax-free.The average return on premium bonds - ie, the amount paid out in prize money - is 1.3%, which is tax-free.
This compares with similar returns on easy access savings accounts.This compares with similar returns on easy access savings accounts.
The Post Office, for example, pays 1.3% to savers, although that includes a bonus rate in the first year.The Post Office, for example, pays 1.3% to savers, although that includes a bonus rate in the first year.
Inflation, as measured by CPI, is currently 1.8%.
From July, savers will also be able to increase the amount they put into Individual Savings Accounts (Isas).From July, savers will also be able to increase the amount they put into Individual Savings Accounts (Isas).
The annual limit for both cash and stocks-and-shares Isas will increase to £15,000 a year.The annual limit for both cash and stocks-and-shares Isas will increase to £15,000 a year.