NS&I has removed one of the two monthly £1 million jackpots. The saved cash is to be distributed among other tax-free prised, including a new £25 Premium Bond prize.
The first change in the structure of Premium Bonds since December 2008 is designed to allow more people to win smaller prizes, while still retaining a chance of scooping the £1 million jackpot. It will come into effect from 1 April.
Also, NS&I confirmed that it will be reducing the Premium Bond fund rate from 1.8% to 1%. The new lower rate will be fixed for April, May and June draws, even if there are further changes to the base rate.
Peter Cornish, director of customer offer at NS&I, said: ‘Premium Bonds are unique and are hugely popular with our customers. Replacing one of the £1 million jackpot prizes with a wider mix of prizes and introducing the new £25 prize category will help us maintain the frequency of tax-free prizes, something that we know is particularly important to premium bond holders.’
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