73,000 fewer Premium Bond prizes on offer from March as fund rate falls to 4.4%

NS&I is set to drop the prize fund rate on Premium Bonds to 4.4% from 1 March. What does this mean for prizes and are more rate cuts coming?

Decreasing arrow graph on lower fewer coins heaps with magnifying glass, economic recession analysis, less income, and savings, business in decline period
(Image credit: patpitchaya)

Premium Bond holders are set to see the prize fund rate drop from a historic high of 4.65% to 4.4% on 1 March, meaning an estimated 73,000 fewer prizes will be on offer. 

The prize fund rate has stood at its highest level since 1999 from September 2023, when National Savings & Investments (NS&I) increased it from 4% to 4.65% for Premium Bond holders. 

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Value of prizesNumber and total value of prizes in February 2024Number and total value of prizes in March 2024 (estimate by NS&I)Difference in number of prizes from February to March 2024
£1,000,000220
£100,0009185-6
£50,000182170-12
£25,000365339-26
£10,000912848-64
£5,0001,8231,697-126
£1,00019,02417,775-1,249
£50057,07253,325-3,747
£1002,363,5952,130,923-232,672
£502,363,5952,130,923-232,672
£251,038,0031,425,338+387,335
Total5,844,664 prizes worth £475,609,3255,771,425 prizes worth £444,399,400-73,239

Vaishali has a background in personal finance and a passion for helping people manage their finances. As a former staff writer for MoneyWeek, Vaishali covered the latest news, trends and insights on property, savings and ISAs.

She also has bylines for the U.S. personal finance site Kiplinger.com and Ideal Home, GoodTo, inews, The Week and the Leicester Mercury.