Now savers can invest in Premium Bonds with just £25
Savings provider NS&I cut the minimum initial investment for Premium Bonds from £100 to £25 on Friday – helping people start a savings habit more easily.
It marks the first time in the 63 years since Premium Bonds launched that the minimum investment has been lowered, and is the lowest minimum purchase since 1993, NS&I said.
The change will allow people over the age of 16 to purchase or set up a standing order for a minimum of £25, or gift at least £25 to children or grandchildren.
The change was first announced in the October 2018 Budget, as part of a package of changes to Premium Bonds, and aims to encourage regular saving.
The maximum investment limit will remain at £50,000 for each customer.
Money invested with NS&I is 100% secure as it is backed by the Treasury.
One in three people in the UK hold Premium Bonds, which give savers the chance every month to win tax-free prizes ranging from £25 to £1 million.
Every £1 bond number has a separate chance each month of winning a prize and the odds are currently 24,500 to one.
Ian Ackerley, chief executive at NS&I, said: “I am delighted that people up and down the country can start a savings habit more easily by investing just £25 in Premium Bonds.
“Investing in Premium Bonds provides the opportunity to win tax-free prizes, whilst ensuring that your money is 100% secure.
“Lowering the minimum investment on Premium Bonds is part of how we can support a stronger savings culture across the country and help those who want to be able to save little and often, and for those who want to give the gift of savings to their loved ones.”
Michael Mercieca, chief executive of financial education charity Young Money, said: “This reduction in the investment threshold enables young people to access this long standing NS&I product more easily.
“Financial education prepares young people for the money-related choices they need to make on a daily basis.
“This positive development means Premium Bonds become a relevant choice for many more young people.”