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Before Budget, Experts Urge Premium Bonds Review as Prize Rate Sits at 3.6%

Financial advisers say many savers could earn more by moving core cash to guaranteed-interest accounts.

Overview

  • NS&I’s Premium Bonds prize fund rate stands at 3.6% after three reductions this year.
  • The chance of a win is roughly 21,000 to one per £1 bond each month and holdings do not earn compound interest.
  • Easy-access savings accounts are paying around 4.5%, with options such as Leeds Building Society’s Home Deposit Saver at 4.8%.
  • Analysts suggest considering cashing in after several draws with no wins, especially for savings earmarked for specific goals.
  • Commentators do not expect notable Premium Bonds changes in the Autumn Budget and caution against shifting savings into overheated stock sectors.