NS&I - interest rates changes

Banking Personal Banking
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  • Premium Bonds prize fund rate increases to 4.65% from September draw – highest level since March 1999, adding £66 million to the prize fund

  • Premium Bonds odds to improve to 21,000 to 1 from 22,000 to 1 – their best level since the April 2008 prize draw

  • Interest rates for Income Bonds, Direct Saver, Direct ISA, Junior ISA and Investment Account to be increased from 18 August

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Good news. Premium Bonds become increasingly good (or at least less bad) an option as interest rates increase and more and more people find themselves hitting the personal tax-free allowance.

1 Like
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If you have £50k maybe.

My big money is all locked away now.

Seemed good idea at the time, when all the chatter was around fixed term rates peaking.

Another myth busted :man_facepalming::rofl:

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  • New 4.40% prize fund rate for Premium Bonds from March 2024 draw
  • Odds remain the same at 21,000 to 1 for each £1 Bond
  • NS&I required to strike a balance between the interests of savers, taxpayers and the broader financial services sector

NS&I is reducing the prize fund rate for Premium Bonds from 4.65% to 4.40% from the March 2024 draw. The odds of any £1 Bond number winning a prize will remain the same at 21,000 to 1.

Andrew Westhead, NS&I Retail Director, said:

“These changes reflect our requirement to strike a balance between the interests of our savers, taxpayers and the stability of the broader financial services sector. In a dynamic savings market, it’s important that our rates are set at an appropriate position against those of our competitors as we work towards meeting our annual Net Financing target.

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For the sharp-eyed amongst us, I’ve adjusted the thread title to something generic. The original title announced a rate increase…….:face_with_raised_eyebrow: