Premium Bond £1 million jackpot prize chances halved

Published: 19 March 2009 By MoneyhighStreet Staff Leave a Comment

National Savings and Investments (NS&I) have announced that they are stopping one of the two Premium Bond £1 million jackpot prizes.

NS&I Premium Bonds

This withdrawal of one of the £1 million prizes comes in addition to the Premium Bond minimum win being cut to £25, as announced by NS&I in January.

The overall Premium Bond prize fund rate is being reduced from 1.8% to 1%.

NS&I have committed to hold the prize fund rate at this level for at least the April, May and June 2009 prize draws, regardless of whether there are any further changes to the Bank of England base rate.

Director of Customer Offer at NS&I, Peter Cornish, said ‘Premium Bonds are unique and are hugely popular with our customers. Replacing one of the £1 million jackpot prizes with a wider mix of prizes and introducing the new £25 prize category will help us maintain the frequency of tax-free prizes – something that we know is particularly important to Premium Bond Holders.’

NS&I has also reduced the rate on its ISA products:

  • Cash ISA, reduction of 0.4% to 0.5%
  • Direct ISA, reduction of 0.5% to 1.3%

Investment account interest rates have been reduced so that they pay a maximum of 0.2%.

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