A healthy credit score has its benefits, so make sure you manage your debt correctly.
Discover the best travel insurance policy for your next trip.
Find current accounts offering in-credit interest rates up to 5.00% AER.
Explore the best cards with a 0% introductory period.
Could the value of your state pension rise by more than inflation?
Will your loved one's gift be tax affected?
Looking for inflation beating returns? Investing in shares could be an option.
A healthy credit score has its benefits, so make sure you manage your debt correctly.
Discover the best travel insurance policy for your next trip.
Find current accounts offering in-credit interest rates up to 5.00% AER.
Explore the best cards with a 0% introductory period.
Could the value of your state pension rise by more than inflation?
Will your loved one's gift be tax affected?
Looking for inflation beating returns? Investing in shares could be an option.
The prize fund now includes more prizes from £50 to £100,000.
The National Savings and Investments (NS&I) is set to increase its Premium Bond prize fund rate to 3.30% AER from March. This will be the third increase to the prize fund this year, having finished 2022 at 2.20% AER.
“Premium Bonds are one of the nation’s most-loved ways to save, giving people the monthly anticipation of a potential win while knowing their money is 100% safe,” said Ian Ackerley, outgoing Chief Executive at the NS&I.
While the Government-backed institution expects the latest increase to add around £15 million to towards its prizes, the chance of winning a prize remains at 24,000 to one. The last time these odds changed was in September’s increase.
As with the most recent draws, the increased rate will make some of the existing prizes more valuable.
There will now be three more prizes of £100,000, six more prizes of £50,000, and 12 more prizes of £25,000, to name a few.
As a result, there will be over 243,000 fewer £25 prizes on offer.
The answer ultimately comes down to your appetite for risk. This, among other factors you need to consider, is explained in more detail in our guide on Premium Bonds.
The Income Bond and Direct Saver will likely attract those who prefer a guaranteed rate of interest. On the other hand, the NS&I’s Premium Bonds might entice those who have exceeded their Personal Savings Allowance or who enjoy the thrill of a random prize each month.
In addition to its Premium Bonds, the NS&I increased the rate on its Direct Saver and Income Bonds to 2.85% AER and 2.89% AER respectively.
While both offers are easy access accounts, the main difference comes through how the interest is paid. The Direct Saver pays interest yearly, while the Income Bond pays its rate monthly.
This means the Direct Saver will likely appeal to those who wish to save and earn consistent compound interest, while the Income Bonds could benefit those willing to supplement their regular income.
Further details of these accounts can be found on our savings chart.
At 3.10% AER, the top rate on the easy access chart comes from Paragon Bank. More information on this deal can be found in an article written last week.
While the Direct Saver and Income Bonds’ rates are lower than Paragon Bank’s offer, the Premium Bond Prize Fund does better this rate.
Despite this comparison, it is important for savers who are looking at investing in Premium Bonds to remember that winning a prize is not guaranteed.
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Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
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Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
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Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
Selected savings rates edge higher as attention is focused on the next inflation announcement on 22 May.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes a one-year bond from Hodge Bank and a two-year fixed mortgage from MPowered Mortgages.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
Changes in the easy access ISA market see Zopa take a top-three position.
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