NS&I cuts Premium Bonds prize pot to 4.40% from March

National Savings and Investments (NS&I) has today announced that its prize fund is being cut from 4.65% to 4.40% with effect from the March draw.

While this is disappointing news for premium bond holders, this time last year the prize fund rate was just 3.00% so it’s still a decent deal when you look at historical returns.

Andrew Westhead, NS&I Retail Director, said:

“After these changes, the Premium Bonds draw in March is expected to pay out over 5.7 million tax-free prizes totalling more than £444 million to savers across the UK.”

From the March 2024 prize draw the Premium Bonds prize fund rate will be reducing by 25 basis points to 4.40%, with the odds remaining the same at 21,000 to 1. This compares to the March 2023 draw when the prize fund rate was 3.30% and the odds were 24,000 to 1.

Current prize fund rate (from September 2023)Current odds (from September 2023)New prize fund rate (from March 2024)Odds (from March 2024)
4.65% tax-free21,000 to 14.40% tax-free21,000 to 1

Value of Premium Bonds prizes

Value of prizesNumber and total value of prizes in January 2024Number and total value of prizes in March 2024 (estimate)
Total:Total5,843,447 prizes£475,510,350Total5,771,425 prizes£444,399,400

Premium Bonds offer a minimum investment starting at just £25. Premium Bonds customers can add to their Premium Bonds holding quickly and securely, both for themselves or a child, via Pay by bank account or bank transfer, and more savings means more chances to win in the monthly prize draws.

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