NS&I trims Premium Bonds prize fund rate to 3.6%
NS&I cut the Premium Bonds prize fund rate by 0.2 percentage points, reflecting falling rates across the savings market.
By Money Guide editorial team
Published:
National Savings & Investments cut the prize fund rate on Premium Bonds to 3.6% from May's draw, down from 3.8%, mirroring rate moves elsewhere in the savings market.
The Premium Bonds prize fund rate represents the value of prizes paid out as a percentage of bonds held; it is not a guaranteed individual return. Statistically, a holder with an average run of luck and an average-sized holding will earn less than the headline rate — much less for smaller holdings.
Premium Bonds are useful for savers who already have an easy-access cash buffer and who want a small chance of large prizes; their tax-free status is most valuable for higher-rate and additional-rate taxpayers who have used their Personal Savings Allowance.
NS&I's Direct Saver and Income Bonds rates were also reviewed, with NS&I continuing to balance the need to meet its annual net financing target with competitive positioning.