HC Deb 29 July 1976 vol 916 cc397-8W
Mrs. Wise

asked the Chancellor of the Exchequer whether he intends to make any changes to the terms of premium savings bonds.

Mr. Denzil Davies

Yes. The underlying rate of interest which determines the premium savings bond prize fund will be increased from 5½ to 5⅝ per cent. per annum from November 1976 and will take effect from the November prize draw. From 1st November the minimum purchase of premium savings bonds will be increased from £2 to £5 and bonds will be sold in multiples of £5 only. The prize draw will continue to be based on £1 units each with its own number and each having its own separate and equal chance of success.

The additional prize money which will be generated by the increase in the underlying interest rate will be distributed by increasing the top monthly prize from £75,000 to £100,000 and by making certain other changes in the monthly prize structure. Details of the changes in prize structure will be published in the London, Edinburgh and Belfast Gazettes.