Today, NS&I has announced a number of rate changes for some of its variable and fixed term products as well as launching a new 2 year issue of British Savings Bonds
According to NS&I, the prize fund rate for its popular Premium Bonds will change to 4.15% for the December draw, along with odds of winning at 22,000 to 1, NS&I has announced today in response to a changing savings market.
Additionally, from Wednesday 20 November the interest rate for Direct Saver will change to 3.75% gross/AER, and Income Bonds to 3.69% gross/3.75% AER.
A new 2-year Issue of NS&I’s British Savings Bonds has also gone on sale today offering 4.10% gross/AER for the Guaranteed Growth Bond option and 4.02% gross/4.09% AER for the Guaranteed Income option.
Andrew Westhead, NS&I Retail Director, said:
“As the savings market continues to change, we need to lower the rates on some of our products to help us meet our Net Financing target, while also ensuring we continue to balance the interests of our savers, taxpayers and the broader financial services sector.
“Even with the changes, we’re still expecting to pay out over 5.7 million prizes worth over £435 million in the December Premium Bonds draw.
“Our portfolio of both fixed and variable rate products, plus the unique position of Premium Bonds, continues to give savers the choices they need to help reach their savings goals, backed by the safety and security of our 100% HM Treasury guarantee.”
Premium Bonds
From the December 2024 draw, the prize fund rate for Premium Bonds will change to 4.15%, down from 4.40%. The odds of winning will reduce to 22,000 to 1 from the current odds of 21,000 to 1. The prize fund rate for Premium Bonds was last changed in March 2024.
The December Premium Bonds draw is expected to have over £435 million in the prize fund with over 5.7 million prizes ranging from two £1 million prizes to over 1.5 million £25 prizes.
| Current prize fund rate (from March 2024) | Current odds (from March 2024) | New prize fund rate (from December 2024) | New odds (from December 2024) |
| 4.40% tax-free | 21,000 to 1 | 4.15% tax-free | 22,000 to 1 |
Value of Premium Bonds prizes
| Value of prizes | Number and total value of prizes in October 2024 | Number and total value of prizes in December 2024 (estimate) |
| £1,000,000 | 2 | 2 |
| £100,000 | 88 | 83 |
| £50,000 | 177 | 167 |
| £25,000 | 353 | 332 |
| £10,000 | 883 | 830 |
| £5,000 | 1,766 | 1,664 |
| £1,000 | 18,452 | 17,426 |
| £500 | 55,356 | 52,278 |
| £100 | 2,212,098 | 2,072,099 |
| £50 | 2,212,098 | 2,072,099 |
| £25 | 1,490,033 | 1,509,458 |
| Total: | Total 5,991,306 prizes £461,330,525 | Total 5,726,438 prizes £435,686,300 |
Variable rate savings products
| Product | Previous interest rate (from 23 May 2024 to 19 November 2024) | Interest rate from 20 November 2024 |
| Direct Saver | 4.00% gross/AER | 3.75% gross/AER |
| Income Bonds | 3.93% gross/4.00% AER | 3.69% gross/3.75% AER |
This is the first time that NS&I has reduced interest rates for Direct Saver and Income Bonds since November 2020.
British Savings Bonds
New Issues of 2-year British Savings Bonds went on sale today with a lower rate of 4.10% gross/AER for the Guaranteed Growth option and 4.02% gross/4.09% AER for the Guaranteed Income option. The 2-year Issues of the Bonds were brought back on sale in August this year to offer savers increased choice and longer-term security in a changing market.
| Product | Previous interest rate (on sale from 11 September to 21 October 2024) | New interest rate from 22 October 2024 |
| Guaranteed Growth Bonds (2-year) | 4.25% gross/AER | 4.10% gross/AER |
| Guaranteed Income Bonds (2-year) | 4.17% gross/4.25% AER | 4.02% gross/4.09% AER |
