Premium Bonds prize fund rate to reduce from the January 2025 draw

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Premium Bonds prize fund rate to reduce from the January 2025 draw
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NS&I said it carefully reviews rates in response to changes in the broader market.

The prize fund rate for Premium Bonds will become less generous from the January 2025 draw, NS&I has announced.The prize fund rate for Premium Bonds is already due to be cut to 4.15% in December, down from 4.4%, according to an earlier announcement.The changes include an estimated 82 prizes of £100,000 in January, down from 83 in December.The estimated number of £1 million prizes will remain the same, at two.

NS&I, which is backed by the Treasury, has a duty to balance the needs of savers, taxpayers and the wider financial market. The Bank of England base rate has been cut twice this year.Andrew Westhead, NS&I retail director, said: “We carefully review our savings rates in response to changes in the broader market.

“Premium Bonds remain a popular choice for millions of savers, backed by the 100% Government guarantee, with the January 2025 draw set to deliver over 5.8 million tax-free prizes worth more than £431 million.”

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