January will be lucky for some (Picture: Premium Bonds)

If you have money saved with Premium Bonds, the draws from 2023 could bring you more money due to changes being brought in.

There will be an extra £80 million in prizes up for grabs from the January prize draw, and for each draw after that.

Provider NS&I said the prize fund rate will increase from 2.2% to 3%, with more opportunities to win life-changing sums of cash.

You won’t have increased odds of winning a prize overall, but you’re more likely to get a bigger prize. This is because there will be fewer £25 prizes but more of the bigger sums.

There will be an estimated 56 chances to win £100,000, up from 18 in December.

And there will be an estimated 112 £50,000 prizes, up from 36 in December.

There will be 1,118 chances to win £5,000, up from 359 in December’s draw.

And the chance of winning £1,000 has also more than doubled, to 11,983.

But the number of the top prize of £1,000,000 will remain the same, at two.

The changes will see the January 2023 prize fund hit an expected £299,572,750.

More than 570,000 customers holding Direct Saver and Income Bonds will also benefit from Tuesday, as the interest rate on both products increases from 1.80% to 2.30%.

The rate on Direct Saver is now at its highest level since the account was launched in March 2010, while the interest rate on Income Bonds is the highest it has been since February 2009.

NS&I, which is backed by the Treasury, said the changes will mean its products are priced appropriately when compared with the rest of the savings market and ensure that NS&I continues to balance the interests of savers, taxpayers and the broader financial services sector.

Don’t forget to check to see if you’ve won anything (Picture: PA)

NS&I chief executive Ian Ackerley said: ‘The new year increase to the Premium Bonds prize fund rate will mean that customers will have seen the prize fund rate triple in less than a year.

‘This means a bigger prize pot and more higher value prizes for our customers – a great way to start 2023.’

Sarah Coles, senior personal finance analyst, Hargreaves Lansdown, said NS&I has ‘gone to town with more life-changing sums’.

She said: ‘It’s a clever move at a time when we know people are searching for a solution to the financial dead end they’ve found themselves in.

‘We know prize draws become far more tempting at times like this, so Premium Bonds are positioning themselves as the ultimate game of chance – with your money back if you lose.

‘However, before you’re dazzled by the new prizes, it’s important to be aware of what’s involved when you buy Premium Bonds, and the impact of focusing on bigger prizes.

‘Despite the average prize rate rising, there are absolutely no guarantees you’ll get anything like this, because the odds of a win are still 24,000 to one.’

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Provider NS&I said the prize fund rate will increase from 2.2% to 3%, with more opportunities to win life-changing sums of cash.