Overview

• The cut from 3.8% to 3.6% marks the fourth prize fund reduction since December 2024.
• Odds of each £1 bond winning remain at 22,000 to one; a reduced prize fund means fewer big payouts.
• At 3.6%, the prize fund is only marginally above the 3.5% inflation rate, limiting real returns for average savers.
• Personal finance experts predict the rate could fall to around 3.3% by the fourth quarter if Bank of England base rates are cut again.
• Premium Bonds continue to offer government-backed security and tax-free winnings for those seeking low-risk savings.