Premium Bonds savers may be wondering what the future holds as provider NS&I has slashed some of its rates. The prize fund rate for Premium Bonds is currently 3.6 percent. It was cut several times last year, including in January, April and August.
The odds of winning for each £1 Bond that goes into the draw is currently 22,000 to one. However, NS&I has announced it will be slashing some of the rates on its other products.
The savings giant said it will reduce the rate on its Direct Saver from 3.3 percent down to 3.05 percent, while the rate on its Income Bonds will come down from 3.3 percent down to 3.05 percent. These new rates will come in from Thursday, February 12.
Andrew Westhead, NS&I retail director, said: « We keep all our savings rates under review as market conditions change. Today’s changes will help us meet our net financing target whilst continuing to balance the interests of our savers, taxpayers and the wider financial services sector. »
This is the first time NS&I has changed the rates for these two accounts since March 2025. This raises the question of whether or not the Premium Bonds scheme could be made less generous soon.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: « Premium Bond holders will be glad NS&I has chosen this approach, rather than cutting the Premium Bond prize rate. However, they’re not out of the woods just yet.
« NS&I will have an eye on ensuring the prize rate isn’t offering significantly more than the easy access market, so if we see more widespread cuts, Premium Bonds could be next for the chop. » Many savings providers have been reducing their rates in recent months as the base interest rate set by the Bank of England has been falling.
The base rate is currently 3.75 percent, having dropped six times since it reached its peak at 5.25 percent back in August 2023. There were four rate cuts in 2025.
Premium Bonds holders can check if they have any winnings to collect using the prize checker tool on the NS&I website, or through the prize checker app. The first two £1million winners for this year were from Suffolk and from Berkshire.
The prize draw takes place at the start of each month and always includes two jackpot prizes for £1million. Other big cash prizes on offer include for amounts such as £100,000 and £50,000.
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