Premium Bonds prizes raised - but how do they compare with best savings accounts?

"From July, the Premium Bonds prize rate will be 3.8 per cent after it had fallen from 3.6 per cent to 3.3 per cent in April. The odds on winning are also better, down from 23,000 to one to 22,000 to one for each bond held. So there should be an extra 322,000 prizes from the 60m pot. While the moves were welcomed by money experts, they note that NS&I was still far below rivals when it comes to savers earning on their cash."

"Cuts in April meant Premium Bonds were paying a prize rate of just 3.3 per cent, where easy access savers can get their hands on more than ten accounts without restrictions on withdrawals paying over 4 per cent. NS&I customers will also see increases to the variable interest rate for "

"Sarah Coles, head of personal finance at AJ Bell, said: It was starting to get a bit embarrassing for NS&I to have fallen quite so far behind the more competitive accounts in the easy access market."

Premium Bonds prize rates will increase to 3.8% from July after falling to 3.6% and then 3.3% in April. The odds of winning improve from 23,000 to one to 22,000 to one for each bond held. The change is expected to add about 322,000 extra prizes from the 60 million prize pot. Money experts welcomed the updates but said NS&I still lags behind rivals for savers’ returns. Easy access savings accounts can offer more than 4% across multiple options without withdrawal restrictions. Sarah Coles said it became embarrassing for NS&I to fall far behind competitive accounts in the easy access market.

Read at www.independent.co.uk