Premium Bonds prize fund rate drops, odds of winning worsen for savers

The prize fund rate for Premium Bonds will decrease from 4.1 percent in December to 4 percent in January. The odds of winning have also worsened, changing from 21,000 to one to 22,000 to one, remaining at that level in January. Experts suggest that savers with smaller amounts may find it difficult to win significant prizes. For better returns, they recommend investing larger sums, around £20,000 or more, or considering high-interest savings accounts that offer guaranteed returns. Alternative savings options include lottery-style accounts, which provide chances to win prizes while saving. These accounts often have higher interest rates than Premium Bonds, making them appealing for those seeking both excitement and reliable growth.