NS&I Premium Bonds: Is the 3.6% Prize Rate Cut the End of the Great British Savings Gamble?

NS&I’s Premium Bonds prize rate drops to 3.6% from August, shrinking the prize pot. Are tax-free jackpots still worth it, or should savers switch to guaranteed returns? (Credit: NS&! X Profile Photo)

The thrill of the Premium Bonds draw has long been a British institution, offering savers a chance to win tax-free prizes instead of guaranteed interest.

But with National Savings and Investments (NS&I) announcing yet another cut to the prize fund rate, from 3.8% to 3.6% starting with the August 2025 draw, savers are questioning whether this beloved savings scheme is losing its sparkle.