New rates for Premium Bonds, Direct Saver and Income Bonds
- Premium Bonds prize fund rate will be 4.00% from the January 2025 draw
- Reduced rates for Direct Saver and Income Bonds from 20 December 2024
The prize fund rate for Premium Bonds will change to 4.00% from the January 2025 draw, with the odds remaining at 22,000 to 1, NS&I announced today in response to changes in the savings market.
Additionally, from Friday 20 December 2024, the interest rate for Direct Saver will change to 3.50% gross/AER, and Income Bonds to 3.44% gross/3.49% AER.
Andrew Westhead, NS&I Retail Director, said:
"We carefully review our savings rates in response to changes in the broader market. These adjustments help us meet our Net Financing target while balancing the interests of our savers, taxpayers and the wider financial services sector.
"Premium Bonds remain a popular choice for millions of savers, backed by the 100% government guarantee, with the January 2025 draw set to deliver over 5.8 million tax-free prizes worth more than £431 million.
Premium Bonds
From the January 2025 draw, the prize fund rate for Premium Bonds will change to 4.00%, down from 4.15%. The odds of winning will remain the same at 22,000 to 1. The prize fund rate for Premium Bonds is also changing for the December 2024 draw, as announced in October 2024.
The January 2025 Premium Bonds draw is expected to have over £431 million in the prize fund with over 5.8 million prizes, ranging from two £1 million prizes to over 1.8 million £25 prizes.
Current prize fund rate (from December 2024) | Current odds (from December 2024) | New prize fund rate (from January 2025) | Odds (no change) |
4.15% tax-free | 22,000 to 1 | 4.00% tax-free | 22,000 to 1 |
Value of Premium Bonds prizes
Value of prizes | Number and total value of prizes in November 2024 | Number and total value of prizes in December 2024 (estimate) | Number and total value of prizes in January 2025 (estimate) |
£1,000,000 | 2 | 2 | 2 |
£100,000 | 89 | 83 | 82 |
£50,000 | 177 | 167 | 166 |
£25,000 | 356 | 332 | 329 |
£10,000 | 887 | 830 | 823 |
£5,000 | 1,766 | 1,664 | 1,648 |
£1,000 | 18,558 | 17,426 | 17,277 |
£500 | 55,674 | 52,278 | 51,831 |
£100 | 2,224,815 | 2,072,099 | 2,001,028 |
£50 | 2,224,815 | 2,072,099 | 2,001,028 |
£25 | 1,498,592 | 1,509,458 | 1,815,854 |
Total: | Total 6,025,741 prizes £463,982,050 | Total 5,726,438 prizes £435,686,300 | Total 5,890,068 prizes £431,938,050 |
Variable rate savings products
Product | Current interest rate (from 20 November to 20 December 2024) | Interest rate from 20 December 2024 |
Direct Saver | 3.75% gross/AER | 3.50% gross/AER |
Income Bonds | 3.69% gross/3.75% AER | 3.44% gross/3.49% AER |
-Ends-
Notes to editors
- NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security as NS&I is backed by HM Treasury.
- AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year, the rate quoted and the AER will be the same.
- Net Financing is the measure of the net change of NS&I funds, meaning total inflows from deposits, retention of maturing monies and capitalised accrued interest, less the total outflows from withdrawals and interest or Premium Bonds prize draw payments. A positive Net Financing figure represents a positive contribution to government financing.
- The Net Financing target for 2024-25 is £9 billion (+/- £4 billion).
- Tax-free means the interest is exempt from UK Income Tax and Capital Gains Tax.
- Information on NS&I’s on sale products can be found here .
- Information on NS&I’s off sale products can be found here .
- NS&I photography and logos are available to download here .