NS&I Cuts Bonds Prize Fund Rate for January 2025

The prize fund rate will drop to 4%, continuing a series of reductions tied to broader market changes.

The Premium Bonds prize fund rate will decrease to 4% in January 2025, following a prior cut to 4.15% in December 2024.
Despite the rate reduction, the odds of winning will remain unchanged at 22,000 to one.
The number of higher-value prizes, such as £100,000 awards, will decline, while the volume of £25 prizes will increase significantly.
NS&I attributes the cuts to aligning with the Bank of England's interest rate reductions and balancing savers' and taxpayers' interests.
Experts suggest savers consider alternative accounts offering higher returns, as NS&I rates now trail competitors in the market.