Premium Bonds may now be the best place for rainy day savings

Are Premium Bonds now the best place for your easy access savings?

NS&I announced this week that the Premium Bonds prize fund rate will be bumped up again in February from 3 per cent to 3.15 per cent.

Compare that to the top easy access deals in This is Money’s best savings rate tables and you can see why Premium Bonds are looking attractive.

The current easy access savings table topper is Yorkshire Building Society’s 3.35 per cent Rainy Day account, but this rate is only paid on the first £5,000 and after that it drops to 2.85 per cent.

On top of that you can only withdraw cash on two days of the year – the anniversary of opening it or the day you close it.

Technically this is easy access, as you can get the cash when you want, but the restrictions are so tight that it won’t suit many.

On the next rung down comes Shawbrook Bank’s easy access account, paying 2.92 per cent, which should be applauded for not carrying any of the caveats that so many of these supposed easy access deals do now.

So, the Premium Bonds rate of return beats the best no strings attached easy access savings deal and comes within a whisker of the top one.

Source of data and images: dailymail