The new NS&I rates will come in from next month
NS&I has slashed some of its rates(Image: Getty)
Premium Bonds holders may be asking what lies ahead for them as provider NS&I has reduced some of its rates. The prize fund rate for Premium Bonds currently stands at 3.6 percent, having been cut several times last year, including in January, April and August.
The odds of winning for each £1 Bond entered into the draw are presently 22,000 to one. However, NS&I has revealed plans to slash some of the rates on its other products. The savings provider announced it will lower the rate on its Direct Saver from 3.3 percent to 3.05 percent, while the rate on its Income Bonds will drop from 3.3 percent to 3.05 percent.
These new rates will take effect from Thursday, February 12. Andrew Westhead, NS&I retail director, said: “We keep all our savings rates under review as market conditions change. Today’s changes will help us meet our net financing target whilst continuing to balance the interests of our savers, taxpayers and the wider financial services sector.”
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This marks the first time NS&I has changed the rates for these two accounts since March 2025, leading to speculation about whether the Premium Bonds scheme could soon become less generous. Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “Premium Bond holders will be glad NS&I has chosen this approach, rather than cutting the Premium Bond prize rate. However, they’re not out of the woods just yet.”
She explained why there could be changes ahead for Premium Bonds: “NS&I will have an eye on ensuring the prize rate isn’t offering significantly more than the easy access market, so if we see more widespread cuts, Premium Bonds could be next for the chop.”
A downward trend
Many savings providers have been lowering their rates in recent months as the base interest rate set by the Bank of England has been consistently decreasing. The base rate currently stands at 3.75 percent, having fallen six times since it hit its peak at 5.25 percent back in August 2023.
There were four rate reductions in 2025. Premium Bonds holders can check if they have any winnings to claim using the prize checker tool on the NS&I website, or via the prize checker app.
The first two £1million winners for this year hailed from Suffolk and Berkshire. The prize draw happens at the beginning of each month, with two jackpot prizes for £1million always in the pot of winnings.
Other substantial cash prizes up for grabs include amounts such as £100,000 and £50,000. Most of the prizes are for much lower amounts, such as £50 or £25.
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