Premium Bonds vs Savings Rates
Premium Bonds (Prize Fund Rate)
3.60%
Tax-free
Best Easy Access Savings
4.00%
Taxable
Bank of England Base Rate
3.75%
⚖️
It depends on your tax situation
Higher-rate taxpayers may benefit from Premium Bonds' tax-free status. Basic-rate taxpayers with PSA allowance remaining get better returns from savings accounts.
Rates as of January 2026 · Updated monthly
Full comparison with tax calculator →
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