Premium Bond holders will see more prizes handed out from the start of next month.

Following the 0.25% Base Rate increase announced last week, the National Savings & Investments (NS&I) has hiked the Premium Bond prize rate from 1.15% to 1.4% as of the December draw.

The increase means the odds of winning any prize will improve from 30,000 to one to 24,500 to one.

What's more, there will also be an increase in the number of big-value prizes.

There will be an extra £100,000 prize up for grabs, while the number of £50,000 and £25,000 giveaways rise to nine and 18 respectively.

See below for the full list of changes.

Earn up to 5% with a current account

Value of prizes

 

Number of prizes in November 2017

Number of prizes in December 2017 (estimate)

£1,000,000

2

2

£100,000

3

4

£50,000

5

9

£25,000

12

18

£10,000

28

42

£5,000

57

87

£1,000

1,366

1,660

£500

4,098

4,980

£100

22,190

22,792

£50

22,190

22,792

£25

2,325,993

2,853,919

Total:

2,375,944

2,906,305

[Read more: Were you a winner in the most recent Premium Bond draw?]

What else is changing?

Of course, NS&I offers a lot more than just Premium Bonds. The saving institution has announced it will be hiking rates on all existing products as well, which you can see in the table below.

It deserves full credit for passing the full 0.25% increase on to customers. Some banks have only passed on part of the hike, while others haven't bothered at all. 

So, well done NS&I on that front.

Product

Current rate

New rate (from 1 December 2017)

Premium Bonds 1.15% 1.40%

Direct ISA

0.75% tax-free/AER

1.00% tax-free/AER

Direct Saver

0.70% gross/AER

0.95% gross/AER

Income Bonds

0.75% gross/AER

1.00% gross/AER

Investment Account

0.45% gross/AER

0.70% gross/AER

Junior ISA

2.00% tax-free/AER

2.25% tax-free/AER