Record £91bn held in Premium Bonds as savers flock to safety
More than £1.6bn was placed into Premium Bonds in May 2020 marking the biggest monthly increase since 2006. As interest rates have fallen, NS&I have sought to support the market with a planned rate reduction on the Income Bond cancelled. Premium Bonds pay no interest but instead, holders are entered into a monthly lottery draw with tax-free cash prizes on offer between £25 and £1m. The maximum investment is £50,000. Bonds must be held for at least one month before they are eligible for a prize draw.