Premium bond prize fund cut

Tim Wallace
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SAVERS in premium bonds will see returns fall from next month as the payouts from the instruments are cut, National Savings and Investments said yesterday.

Instead of receiving interest in the conventional way, the 22m investors stand a chance of winning prizes of up to £1m each month.

The overall pot is being cut from £57m each month to £49m, cutting the average return on the total fund from 1.5 per cent to 1.3 per cent.