NS&I issues new Premium Bonds rules from January 2025 after 'careful review'

National Savings and Investments has announced its rate will drop from January - in a brutal blow to your odds of winning. The Premium Bonds prize fund rate will be 4.00% from the January 2025 draw, NS&I, which is backed by the Treasury, has confirmed.

Reduced rates are for Direct Saver and Income Bonds from 20 December 2024. The prize fund rate for Premium Bonds will change to 4.00% from the January 2025 draw, with the odds remaining at 22,000 to 1, NS&I announced today in response to changes in the savings market.

Andrew Westhead, NS&I Retail Director, said: "We carefully review our savings rates in response to changes in the broader market. These adjustments help us meet our Net Financing target while balancing the interests of our savers, taxpayers and the wider financial services sector.

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"Premium Bonds remain a popular choice for millions of savers, backed by the 100% government guarantee, with the January 2025 draw set to deliver over 5.8 million tax-free prizes worth more than £431 million." Additionally, from Friday 20 December 2024, the interest rate for Direct Saver will change to 3.50% gross/AER, and Income Bonds to 3.44% gross/3.49% AER.

From the January 2025 draw, the prize fund rate for Premium Bonds will change to 4.00%, down from 4.15%. The odds of winning will remain the same at 22,000 to 1. The prize fund rate for Premium Bonds is also changing for the December 2024 draw, as announced in October 2024.

The January 2025 Premium Bonds draw is expected to have over £431 million in the prize fund with over 5.8 million prizes, ranging from two £1 million prizes to over 1.8 million £25 prizes. The odds of a bond winning each month are 21,000 to 1 for every £1 bond.

NS&I reduced its odds in December too.