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.
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.
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