NS&I brings in new Premium Bonds rules which will begin 'from December'
New National Savings and Investment rules are coming in from December. The financial provider, which is backed by the Treasury, has moved to announce rate changes for some variable and fixed term products and the Premium Bonds prize fund rate will be 4.15% and odds of winning 22,000 to 1 for the December draw.
There will be a reduced rates for Direct Saver and Income Bonds from 20 November 2024. The prize fund rate for Premium Bonds will change to 4.15% for the December draw, along with odds of winning at 22,000 to 1, NS&I has announced today in response to a changing savings market.
Additionally, from Wednesday 20 November the interest rate for Direct Saver will change to 3.75% gross/AER, and Income Bonds to 3.69% gross/3.75% AER. A new 2-year Issue of British Savings Bonds has also gone on sale today offering 4.10% gross/AER for the Guaranteed Growth Bond option and 4.02% gross/4.09% AER for the Guaranteed Income option.
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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.”
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.