National Savings & Investments has announced interest rate cuts to most of its products. The cuts all take effect from 1 May:
New rate from 1/5/2020
1.15% gross/1.16% AER
24,500:1 monthly odds of winning
26,000:1 monthly odds of winning
The premium bond changes mean that from May, 98.95% of all winning draws will be for the minimum prize of £25. However, as the table shows, the underlying prize interest rate for premium bonds is markedly better than what NS&I is offering on its other variable rate products.
NS&I also worsened the terms on their fixed rate products - Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates. These are not on general sale and are only available for reinvestment of maturing plans.