National Savings and Investments has raised the underlying rate on Premium Bonds to its highest level in nearly two years, improving winning odds for more than 22 million account holders.
The state-backed savings provider boosted the prize fund structure to include a larger number of £50,000 and £100,000 payouts. The decision follows years in which returns on the product lagged behind interest rates offered by top commercial bank accounts.
Premium Bonds are the UK's most popular savings product, managed by government-backed NS&I. Rather than paying fixed interest, the scheme allocates interest into a monthly prize fund where tax-free rewards are distributed by random draw.
The rate increase and its impact on savers were discussed by Lee Boyce, Georgie Frost and Helen Crane on the latest episode of the This is Money podcast, examining why NS&I acted and whether bonds are now competitive.
Land Registry delays and mortgage disruption
The podcast panel also examined severe delays at the Land Registry, where a deluge of cases has left homeowners waiting years for property title registration. Buyers who pay their mortgages every month have discovered their properties are still not registered in their names.
The administrative backlog has left affected homeowners unable to remortgage, resulting in financial losses. HM Land Registry is the executive agency responsible for recording land and property ownership across England and Wales, a requirement for mortgage lenders securing home loans.
Rising inflation and energy price caps
Economic pressures formed another focus of the discussion after official data showed UK inflation rose from 2.6 per cent to 2.9 per cent in July. Higher energy costs drove the increase, prompting questions over future decisions on the Bank of England base rate.
Household energy bills are forecast to head higher still, with predictions of another rise in the energy price cap in October. Meanwhile, consumers face new domestic choices as plug-in solar panels, which generate electricity directly into home sockets, become legally available for sale starting next week.
