After the odds of winning a prize were cut last year, NS&I have made further changes to their popular premium bonds scheme.
Odds of winning a prize were slashed from 26,000 to 1 down to 30,000 to 1 in June last year and now, National Savings & Investments (NS&I) have announced that the “prize fund rate” will be cut too. This means that while the odds of winning a prize will remain at 30,000 to 1, the number of smaller prizes will increase, and there will be fewer £100,000, £25,000, £10,000, £5,000 and £1,000 prizes. This will result in the prize fund rate reducing from 1.25% to 1.15% with the monthly prize pot deceasing from £69.5m to £63.8m in May.
Premium Bond Odds Stay The Same
Premium bonds have been very popular in the past, despite their relatively low interest rates with the lottery aspect appealing to many. This latest cut to prize funds may be enough to put people off from investing though. The good news is that the odds of winning a prize will remain the same, with around 95,000 more £25 prizes being made available.
Other Savings Changes
NS&I are also making changes to three of their other savings products, taking effect on 1 May. Savings rates will be cut on the Direct Isa, income bonds and the Direct Saver accounts. For more information on changes to NS&I premium bonds, head over to The Guardian website.