News
NS&I cuts Premium Bond prize fund rate
National Savings & Investments (NS&I) is cutting the Premium Bond prize fund rate to 1.3% from next month to reflect lower interest rates across the savings market.
The reduction of 0.2% means the odds of each £1 Bond number winning a prize have lengthened from 24,000-to-one to 26,000-to-one.
NS&I said the decision to reduce the rate has also been taken to ensure it stays within its Net Financing range for 2013-14.
Last month, NS&I announced it was reducing the interest rates on its Income Bonds, Direct Saver and Direct ISA with effect from 12 September.
Jane Platt, Chief Executive of NS&I, said: “Rates across the savings market have fallen over recent months, resulting in NS&I savings being increasingly attractive.
“To ensure we stay within our Net Financing target – and in light of our framework to balance the needs of our savers, taxpayers and the stability of the broader financial services sector – we now need to reduce the Premium Bond prize fund rate.”
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