Premium Bonds prize fund rate will be cut within days with fewer high value prizes up for grabs
NS&I is reducing the Premium Bonds prize fund rate
NS&I | GETTY
There will be fewer high value prizes up for grabs in the upcoming Premium Bonds prize draw, as NS&I is reducing the prize fund rate from next month.
The rate will be cut from 4.65 per cent to 4.40 per cent, but the odds of winning a prize will remain at 21,000 to one per £1 Bond number.
NS&I announced the decision last month and predicted the number and total value of prizes which would be up for grabs after the changes.
While there are still set to be two £1million jackpot winners this month, it’s estimated there will be fewer high-value prizes in March 2024.
For instance, there were 91 payouts of £100,000 and 182 winners of £50,000 in January 2024, but this is estimated to fall to 85 and 170 respectively in March.
There will be more lower value prizes available, if the forecast is correct, however.
In January, there were 1,037,784 winners of the £25 prize and in March, there’s expected to be 1,435,338.
In total, there were 5,843,447 prizes in January with a total prize fund of £475,510,350.
It’s estimated there will be 5,771,425 prizes from a £444,399,400 fund in March.
Despite the fall in the prize fund rate, it remains higher than in the March 2023 prize draw.
Last March, the rate was 3.30 per cent and the odds were 24,000 to one.
Andrew Westhead, NS&I Retail Director, said: “These changes reflect our requirement to strike a balance between the interests of our savers, taxpayers and the stability of the broader financial services sector.
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Andrew Westhead is NS&I's Retail Director
NS&I
“In a dynamic savings market, it’s important that our rates are set at an appropriate position against those of our competitors as we work towards meeting our annual Net Financing target.
“After these changes, the Premium Bonds draw in March is expected to pay out over 5.7 million tax-free prizes totalling more than £444million to savers across the UK.”
NS&I will announce some details about the Premium Bonds prize winners on Friday March 1.
The government-backed savings provider will update the Premium Bonds prize checker the following day.
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