Premium Bonds major update issued after ‘careful review’ of prizes available
The prize fund rate for Premium Bonds is going down again from its January 2025 draw.
NS&I has confirmed the prize fund rate will be reduced from 4.15% to 4.00%. The prize fund rate for Premium Bonds is currently 4.4% but NS&I had previously announced it is going down to 4.15% from its December 2024 draw. Premium Bonds are a savings product, but instead of getting a guaranteed rate of interest, you're entered into a monthly prize draw.
This means your chance of getting anything back on your savings is down to luck. The smallest prize you can win is £25 and the biggest prize is £1million – but winning isn’t guaranteed, and some months, you may not win anything at all. The prize fund rate is the closest thing Premium Bonds has to an interest rate.
The odds of winning a prize from the January 2025 draw will remain at 22,000 to 1. There is expected to be over £431million in the prize fund with over 5.8 million prizes available, ranging from two £1million prizes to over 1.8 million £25 prizes. Additionally, from Friday 20 December 2024, NS&I has confirmed the interest rate for its Direct Saver will change to 3.50% gross/AER, and Income Bonds to 3.44% gross/3.49% AER.
Andrew Westhead, NS&I Retail Director, said: "We carefully review our savings rates in response to changes in the broader market. These adjustments help us meet our Net Financing target while balancing the interests of our savers, taxpayers and the wider financial services sector. Premium Bonds remain a popular choice for millions of savers, backed by the 100% government guarantee, with the January 2025 draw set to deliver over 5.8 million tax-free prizes worth more than £431million.”
Have you won big on Premium Bonds and want to share your story? Let us know by emailing: mirror.money.saving@mirror.co.uk
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How to check if you're a Premium Bonds winner
You can use the NS&I online prize checker tool, or the Premium Bonds prize checker app, to see if you've won. If you're a winner, you can have the money paid into their bank account, or reinvest it into new Premium Bonds. You should be emailed or sent a text message from NS&I if you've won.
The odds of a bond winning each month are 21,000 to 1 for every £1 bond – but as we've mentioned above, most prizes are for smaller amounts. NS&I reduced its prize rate from 4.65% to 4.40% from its March 2024 draw. However, there will still be two jackpot prizes of £1million. The prize fund rate is often described as the the nearest thing Premium Bonds has to an interest rate.
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