Which? uses cookies to improve our sites and by continuing you agree to our cookies policy.

NS&I cuts Premium Bond prize fund

Government body announces 1% reduction in fund

The NS&I logo

Check the NS&I website to see if you have won

National Savings & Investments announced this week that it was slashing its Premium Bond prize fund by just over one percentage point following the recent interest rate cut.

The Government-backed group said it was reducing the Premium Bond prize fund rate from 2.85% to 1.8% from December 1.

It will continue to give out two £1 million jackpot prizes, but the total value of prizes will fall from £87.8 million to £57 million.

The odds of winning a prize will lengthen to 36,000 to one for every £1 invested from 24,000 to one.

This means that someone with average luck who has the maximum £30,000 invested could win around 10 prizes a year.

Other products

National Savings & Investments (NS&I) is also reducing returns on its Income Bonds by less than the fall in the Bank of England base rate, cutting them by 1.3%.

But interest rates on Investment Accounts are being cut by 1.5%, to give a top return of 1.9% for people who have £50,000 invested.

The group’s cash Isa and Easy Access Savings Account were also having their rates cut by 1.5%, although a change to the bottom tier of the Easy Access Savings Account means that people with less than £10,000 invested will actually see a 0.3% increase in the return they receive.

RSS Feeds

For daily consumer news, subscribe to the Which? news RSS feed here. If you have an older web browser you may need to copy and paste this link into your newsreader:  https://www.which.co.uk/feeds/reviews/news.xml . Find out more about RSS in the  Which? guide to news feeds.

Back to top