The change will take impact in April’s prize draw.
NS&I makes main change to Premium Bonds guidelines in blow to savers (Picture: Getty)
NS&I has introduced it’s decreasing the Premium Bonds prize fund charge to three.30% with impact from its April 2026 draw. The change lowers the speed to three.60% and elongates the chances for every £1 bond to 23,000 to 1 from 22,000 to 1.
The Premium Bonds prize fund charge was final modified in August, and the chances in December 2024. Andrew Westhead, NS&I Retail Director, stated: “This variation to the Premium Bonds prize fund charge and odds displays modifications within the wider financial savings market, and ensures we proceed to steadiness the pursuits of savers, taxpayers and the broader monetary companies sector.”
Mr Westhead stated Premium Bonds proceed to be the preferred UK financial savings account.
He added that having not too long ago handed £40billion in prizes drawn, NS&I expects the April draw to have shut to 6 million tax-free prizes value round £375million.
NS&I’s Retail Director stated: “Premium Bonds keep their distinctive attraction by providing 100% safety, the pliability to withdraw simply, and the joy of doubtless successful a tax-free prize every month.”
Whereas NS&I’s prize fund charge drops from April’s draw, it estimates two savers will scoop the highest prize of £1million. The variety of folks successful the bottom prize of £25 is anticipated to rise from 2,643,007 to 2,806,003.
However prize quantities in between are all anticipated by NS&I to see a drop.
As a substitute of paying curiosity, there’s an annual prize fund charge which funds a month-to-month draw. Every £1 bond bought is entered right into a month-to-month prize draw.
NS&I stated there are greater than 22 million Premium Bonds holders within the UK. Savers can maintain as much as £50,000 in Premium Bonds. All NS&I’s merchandise are backed by HM Treasury.
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