Savings: Interest rate cut on Premium Bonds, what are the alternatives?

Savings: Interest rate cut on Premium Bonds, what are the alternatives?Premium Bonds, the ever popular tax-free savings account from National Savings & Investments (NS&I), got a little less attractive yesterday, with the news that less money will paid out in prizes from August onwards. Premium Bonds are perhaps the most popular way of saving in the UK, with more than 22 million people holding them. Unlike traditional savings accounts no interest is paid, but each £1 bond is entered into ...

Savings: NS&I to reduce interest rate on Premium Bonds

No quick return for NS&I Index Linked Certificates 150pxMillions of savers will see their tax-free Premium Bonds return less each year, after today’s news that National Savings & Investments (NS&I) will reduce the interest rate paid on these popular accounts. The UK’s 22 million Premium Bond investors don’t actually get interest on their savings, in the way a typical savings account  works, but are eligible to win prizes each month of between £25 and £1 million. However, NS&I has announced it will be cutting the prize fund rate from 1.5% to ...