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Premium Bonds prize fund was cut to 3.8% in May 2026. Most UK savers shrugged and moved cash to a fixed-rate ISA. The smarter play sat one click away on the NS&I site — and almost nobody noticed.
Premium Bonds remain the most-held financial product in Britain. The May 2026 prize fund rate cut to 3.50% looks small, but it pushes the expected return below the better easy-access ISAs after tax for the first time in three years.
Premium Bonds are the UK's most popular savings product, but most people hold too much or too little in them. Here is how to use them effectively.
What Are Premium Bonds? Premium Bonds are a savings product offered by NS&I (National Savings and Investments), which