Premium Bonds alert for pensioners with holdings as NS&I rates change comes in View Image

Premium Bonds holders have been urged to review their accounts. This comes as NS&I has announced a new issue of British Savings Bonds, with higher rates for the fixed rate products.

The news may leave Premium Bond savers questioning whether the prize fund rate for the scheme could also see an increase. The prize fund rate currently stands at 3.6 percent, having been reduced several times throughout the year.

There were cuts to the rate in January, April and August. Each £1 Bond currently has odds of winning at 22,000 to one. Aaron Peake, personal finance expert at free credit score service CredAbility , warned that Premium Bonds are "not necessarily the best choice for everyone".

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