You can now buy Premium Bonds with less as NS&I slashes the minimum savings limit to £25

SAVERS can now put as little as £25 into Premium Bonds thanks to a shake up at National Savings and Investments (NS&I).

The Government's savings arm has confirmed that it is reducing the minimum investment from £100 to allow more people to access the bonds.

This is the first time that NS&;I has dropped a minimum investment rate since the bonds were introduced 63 years ago in 1956.

It's also the lowest minimum purchase since 1993.

As well as accessing one off investments at this new, lower rate, customers will also be able to set up standing orders to purchase £25 worth of bonds.

Previously, you had to invest at least £50 each time by standing order.

NS&I pays an annual prize fund interest rate of 1.4 per cent, but what you actually get back will depend on how often you win (if at all) and how much the prizes are worth.

You can see what your odds are like and whether you'd be better off with a savings account by using .

For instance, the calculator says that if you only hold £1,000 worth of bonds for a year, you're unlikely to win anything at all.

Each bond has an equal chance of winning, so the more you buy, the more your chances improve.

Any money invested is protected, as NS&I is backed by the Treasury.

Ian Ackerley, chief executive at NS&I, said: "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 the financial education charity Young Money, added: “It is crucial for young people’s futures that they can manage their finances appropriately, and this includes striking a balance between spending and saving.

"This reduction in the investment threshold enables young people to access this long standing NS&I product more easily."

What are Premium Bonds, where can you buy the UK’s biggest savings product and how to check if you have won?

The February 2019 Premium Bonds winning numbers have been revealed – find out if you won the £1million cash prize.

Four alternatives to Premium Bonds – we reveal how to win big on your savings.

We pay for your stories! Do you have a story for The Sun Online Money team? Email us at money@the-sun.co.uk or call 0207 78 24516. Don't forget to join the for the latest bargains and money-saving advice.