Hard-pressed savers can now invest in Premium Bonds with as little as £25, after National Savings & Investments (NS&I) cut the minimum investment requirement for the first time in 63 years.
Previously customers had to deposit at least £100 to purchase Premium Bonds, but this threshold has been lowered to encourage young people to invest and to make it easier for customers to make small investments on behalf of their children and grandchildren.
The Government-backed NS&I said it hoped the change would encourage customers of all ages to invest small sums on a regular basis, with regular standing orders for £25 also now permitted. The upper limit for investment remains at £50,000 per customer.
Savers have turned to Premium Bonds in large numbers in recent years, preferring to take a chance on prize payouts rather than stick with high street savings accounts offering paltry rates of interest.
Monthly prizes range from £25 to two £1m top prizes, with the odds of winning a prize standing at 24,500 to 1.