Cuts to interest rates from the Bank of England and government bond yield fluctuations have put pressure on NS&I.
Savers will see the premium bond prize rate maintained at last November's level of 1.8 percent through February and March, National Savings & Investments (NS&I) has confirmed.
The move comes despite the Bank of England cutting interest rates in December and in January to an all-time low of 1.5 percent. However, other savings products and income bonds have had their rates reduced by up to one percent.
Savings rates from the government-backed provider are generally dependent on returns on government bonds as well as interest rates from the Bank of England.
Due to this, fixed-rate savings products are also to be reduced by up to 1.85 percent thanks to fluctuations in bond yields.
NS&I also announced that it would introduce £25 Premium Bond prizes in the future, but not before April 1st. Currently, prizes start at £50 and go up to a £1 million jackpot.
The firm said that this move came due to customer demand for more frequent prize winnings.
Peter Cornish, a director at NS&I, added: "We always set our interest rates in a fair and measured way. Since the changes to the base rate last December we have taken the time to understand the full impact of any potential changes on our customers.
"Premium Bonds are unique. From listening to our customers we know how important winning prizes regularly is to them."
