National Savings & Investments (NS&I) today announced that it is reducing the annual Premium Bonds prize fund rate by 0.20% to 1.30% on 1 August 2013. Also on that date, the odds of each £1 Bond number winning a prize will reduce to 26,000 to 1 from 24,000 to 1.
Key facts about NS&I Premium Bonds:
- They give holders the chance to win £1 million every month.
- Instead of paying interest, NS&I hold monthly prize draws with a £1 million jackpot and over 1.7 million other smaller cash prizes.
- Prizes are paid tax free.
- Inflation can however erode their value.
This coupled with June’s inflation figures showing an inflation rate of 2.9% means Premium Bonds are particularly unlikely to stop the value of your money being eroded by inflation.
With interest rates at such low levels it is now particularly difficult to find cash based savings which will protect against inflation.
As independent financial advisers Farrell Financial Planning design low risk investment strategies designed to beat inflation.
Contact us to discover how our expert independent financial advice can help your savings and investments meet your goals.
All information is correct as at 24/07/13.
Investment returns aren’t guaranteed. The value of your investment can go up or down so you may get back less than you paid in. Long term investments are not suitable for everyone.
Information is based on Farrell Financial Planning’s understanding of NS&I’s Premium Bonds.