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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 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. | |
Increase | Increase |
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. |
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