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Premium Bonds prize fund rate to be cut to 4.15% from December

The prize fund rate for Premium Bonds will be cut from 4.40% to 4.15% for the December 2024 draw, along with odds of winning increased from 21,000 to 1 to 22,000 to 1, NS&I has announced today.

This will be disappointing news for the 24 million plus Premium Bond holders but the move isn’t surprising as it’s in line with the general down wards movement of interest rates in the UK savings market.

Andrew Westhead, NS&I Retail Director, said:

“As the savings market continues to change, we need to lower the rates on some of our products to help us meet our Net Financing target, while also ensuring we continue to balance the interests of our savers, taxpayers and the broader financial services sector.

“Even with the changes, we’re still expecting to pay out over 5.7 million prizes worth over £435 million in the December Premium Bonds draw.

“Our portfolio of both fixed and variable rate products, plus the unique position of Premium Bonds, continues to give savers the choices they need to help reach their savings goals, backed by the safety and security of our 100% HM Treasury guarantee.”

Premium Bonds

From the December 2024 draw, the prize fund rate for Premium Bonds will change to 4.15%, down from 4.40%. The odds of winning will reduce to 22,000 to 1 from the current odds of 21,000 to 1. The prize fund rate for Premium Bonds was last changed in March 2024.

The December Premium Bonds draw is expected to have over £435 million in the prize fund with over 5.7 million prizes ranging from two £1 million prizes to over 1.5 million £25 prizes.

Current prize fund rate (from March 2024)Current odds (from March 2024)New prize fund rate (from December 2024)New odds (from December 2024)
4.40% tax-free21,000 to 14.15% tax-free22,000 to 1

Value of Premium Bonds prizes

Value of prizesNumber and total value of prizes in October 2024Number and total value of prizes in December 2024 (estimate)
£1,000,00022
£100,0008883
£50,000177167
£25,000353332
£10,000883830
£5,0001,7661,664
£1,00018,45217,426
£50055,35652,278
£1002,212,0982,072,099
£502,212,0982,072,099
£251,490,0331,509,458
Total:Total
5,991,306 prizes
£461,330,525
Total
5,726,438 prizes
£435,686,300

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