NS&I have today (1 February 2019) reduced the minimum initial investment for Premium Bonds from £100 to £25. This is the first time in the 63 years since Premium Bonds launched that the minimum investment has been lowered, and it is the lowest minimum purchase since 1993. The change will allow adults over the age of 16 to purchase or set up a standing order for a minimum of £25, or gift at least £25 to their children or grandchildren.
This change was first announced in the October 2018 Budget, as part of a package of enhancements to Premium Bonds that will be introduced throughout the year, and is aimed at encouraging regular saving and gifting in one of the UK’s best loved savings products.
As well as being able to start investing with £25, customers will be able to set up standing orders to purchase a minimum of £25 to save on a regular basis (the current minimum is £50). The maximum investment limit will remain at £50,000 for each customer. All money invested with NS&I is 100% secure as we are backed by HM Treasury.
One in three people in the UK hold Premium Bonds, which give savers the chance every month to win tax-free prizes ranging from £25 to £1 million. Every £1 Bond number has a separate and equal chance each month of winning a prize of any value and the odds are currently 24,500 to 1.
Gift a regular savings habit
It’s not just over 16s who can benefit from the new £25 minimum investment, as parents and grandparents are also able to purchase a minimum of £25 for under 16s, as well as setting up a standing order.
NS&I will also be allowing all adults to purchase Premium Bonds for under 16s, making Premium Bonds a great gift for nieces, nephews, godchildren or family friends at a date to be announced in due course.
Ian Ackerley, Chief Executive at NS&I, said:
“I am delighted that people up and down the country can start a savings habit more easily by investing just £25 in Premium Bonds. Investing in Premium Bonds provides the opportunity to win tax-free prizes, whilst ensuring that your money is 100% secure.
“Lowering the minimum investment on Premium Bonds is part of how we can support a stronger savings culture across the country and help those who want to be able to save little and often, and for those who want to give the gift of savings to their loved ones.”
Michael Mercieca, CEO of the financial education charity Young Money, commented:
“It is crucial for young people’s futures that they can manage their finances appropriately, and this includes striking a balance between spending and saving. This reduction in the investment threshold enables young people to access this long standing NS&I product more easily.
“Financial education prepares young people for the money-related choices they need to make on a daily basis. This positive development means Premium Bonds become a relevant choice for many more young people”.