NS&I - interest rates changes

  • 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

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.

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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:

  • 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.

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: