Premium Bond Rates Drop to 4 15% - DITCH or KEEP? (NS&I Drop rates again!)

NS&I has announced a reduction in the Premium Bonds prize fund rate to 4.15% for the December 2024 draw. The odds of winning will also decrease to 22,000 to 1 from the current 21,000 to 1. This is the second reduction this year after eight consecutive increases between December 2020 and January 2024.

The prize fund rate change puts Premium Bonds further behind standard savings accounts and cash ISAs. For example, easy-access cash ISAs offer up to 5.1% interest, and easy-access savings accounts offer up to 5%. One-year fixed-rate savings accounts offer 4.87%.

While Premium Bonds prizes are tax-free, cash ISAs might still be a better option for many. So in this video I cover the changes being made, whay they are being made, the impact of teh changes, some alternatives and what I am going to do.

0:01 - Intro
0:31 - What is changing?
1:31 - What is driving the changes?
2:29 - Stay or Go and alternatives
4:55 - Who might still benefit
5:55 - What am I going to do?
6:57 - Wrap up

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Disclaimer: This video is provided for information and entertainment purposes only. Please seek the help of a qualified regulated financial professional for any advice. Capital is at risk. Some links are affiliates and I will earn a commission from using them.

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#Premium Bonds #NS&I #Savings #Interest Rates #Prize Fund Rate #Investments

[MakeItCount-]

Another drop from NS&I. Is this going to change your views on PB's?