Will Premium Bonds be cut next after NS&I lowers other rates?

There is no confirmation, but a trim is possible. NS&I balances its funding needs and market conditions. If it continues to attract strong inflows, it could reduce the prize rate to moderate balances. Savers should watch monthly updates and be ready to shift excess cash into better-paying easy-access or fixed accounts if value falls.

What changes on 12 February for NS&I customers?

NS&I will cut rates on Income Bonds and Direct Saver from 12 February. The Premium Bonds prize rate stays at 3.6% for now. Check your account pages to see the new rates applied. If your return drops, compare top challengers, consider fixed terms for stability, and keep enough easy-access cash for short-term needs.

Are Premium Bonds better than a savings account right now?

It depends on your goals. Premium bonds offer tax-free prizes and full government backing but uneven returns. Savings accounts give predictable interest and may beat your personal prize outcomes, especially after tax for basic-rate taxpayers. Compare expected returns after tax and inflation, and blend both if you want safety, access, and steadier income.

How should UK savers split cash between Premium Bonds and deposits?

Start with an emergency buffer in easy-access cash, then consider fixed terms for known goals. Add premium bonds for tax-free upside and government security, accepting variability. Higher-rate taxpayers may benefit more from prizes, while income seekers may prefer fixed deals. Review quarterly, rebalance if rates shift, and avoid holding beyond protection limits at one bank.

Global Market Insights

February 01: Premium Bonds Watch as NS&I Slashes Savings Rates Feb 12

ByHuzaifa Zahoor February 1, 2026February 1, 2026

Premium bonds are back in focus after NS&I said it will cut Income Bonds and Direct Saver rates on 12 February while keeping the Premium Bonds prize rate at 3.6% for now. With UK inflation at 3.4%, real returns matter. We explain what the NS&I rate cuts mean, how the prize fund works, and when a trim could hit premium bonds next. We also outline practical moves for UK savers comparing savings rates UK across easy-access and fixed options.