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Premium Bonds savers are being warned over a prize rate cut as NS&I rolled out a big change in November. Ahead of Christmas, NS&I announced a new issue of its British Savings Bonds that have gone on sale, with higher interest rates.

This includes the fixed-term issues of its Guaranteed Growth Bonds and Guaranteed Income Bonds. The uptick in rates may prompt Premium Bonds holders to ask if there will be a similar increase in the prize fund rate.

NS&I has cut the prize rate for Premium Bonds several times this year, in January, April and August. The rate is currently 3.6 percent, with the odds of each £1 Bond winning a prize at 22,000 to one.

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Sarah Coles, head of personal finance at Hargreaves L

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