Premium Bonds

Treasury written question – answered on 24th June 2021.

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Photo of Matthew Offord Matthew Offord Conservative, Hendon

To ask the Chancellor of the Exchequer, if will make an assessment of the potential merits of raising the limit of the number of Premium Bonds that a person may purchase.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The current Premium Bonds investment limit is £50,000, which is set out in UK legislation. When setting the investment limit, HM Treasury and NS&I must strike a balance between the differing needs of savers, taxpayers and the wider financial sector. While some customers would wish to invest more than the current limit in Premium Bonds, raising the limit could lead to the scheme becoming dominated by a small number of people with large investments. NS&I has found from experience that customers are sensitive to taking part in a prize draw in which some people hold a very large number of bonds. In addition, NS&I is sensitive to changing the investment limit in a way that disadvantages other banks and firms that offer rates of interest with similar returns to Premium Bonds.

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