National Savings

National Savings and Investments

NS&I PREMIUM BONDS

CHANGES TO TERMS AND CONDITIONS AND PRIZE VALUES

NS&I is making some important adjustments to Premium Bonds terms and conditions and prize values.

With the Bank of England base rate now at historically low levels, we are reviewing different options for the Premium Bonds prize fund. The new terms and conditions will give us the flexibility to adapt the prize fund more quickly in response to changes in the base rate.

The two main changes to the terms and conditions are as follows, and will be effective from 1 February 2009:

•    Removing the requirement to give three months’ notice to change the individual prize values.

•    Taking out the detail of how the prize fund is shared between the individual prize values. From 1 February 2009 this information will be published in a separate prize draw details leaflet, available direct from NS&I and from Post Office® branches.

A new, additional £25 Premium Bond prize category may be introduced to the prize values from 1 April 2009

To ensure that NS&I still pays out as many prizes as possible, even in a low interest rate environment, we now have the option to create a new £25 prize category in addition to the current categories, ranging from £50 to £1 million.

The Premium Bonds prize fund rate will be held at the current level until at least the March 2009 draw (inclusive)

Despite reductions in the base rate, NS&I will be holding their Premium Bonds prize fund rate at the level that applied on 1 December 2008. This means that the Premium Bonds prize fund rate will be kept at 1.8% until at least the March 2009 draw (inclusive).

For more information on the changes to Premium Bonds

You can contact NS&I direct, or from 2 February 2009 you can pick up brochures showing the new terms and conditions at the Post Office® and most branches of WHSmith. If you would like to read the new terms and conditions for Premium Bonds in full, before they are introduced, simply visit our website www.nsandi.com and follow the links in the News from NS&I section.

National Savings and Investments is backed by HM Treasury