Premium Bonds holders have been warned to “move funds out of accounts” and into a savings account with a guaranteed return. The warning comes ahead of ANOTHER rate cut from National Savings and Investments, which is backed by the Treasury. Amy Knight from Nerd Wallet warned: “From the August prize draw, savers with average luck will see their money boosted by prize draw wins to the tune of 3.6% – only fractionally higher than inflation is currently pushing up the cost of goods and services. “In the ongoing battle to stay on top of rising costs, earning a higher rate of interest than the current CPI rate is the key to ‘beating inflation’.” READ MORE Future of major UK high street chain with 281 shops in doubt CPI is the official measure of inflation. It tells you how much the cost of goods and services has increased over the past year based on a representative basket of household items. To measure CPI each month, the ONS looks at around 180,000 prices across almost 750 typical goods and services to see how prices have changed. Amy had a warning for those with Bonds and said they may find themselves able to maximise their cash through other options. “The best rates are often found on fixed-term savings accounts and fixed-rate bonds, where you commit to leaving your savings untouched for a set period of time,” she said. “These can provide much more reliable returns than Premium Bonds, provided you won’t need to withdraw early.” Ms Knight said: “Anyone on a mission to maximise the growth of their savings should think about moving funds out of Premium Bonds into a savings account with a guaranteed return. “If inflation shoots back up, you’ll be glad to have shifted your savings to an account where your cash is growing faster than inflation is nibbling away at its value.” There are currently 24 million Premium Bonds holders in the UK. She explained: “For someone saving for a specific life event in the short to medium term, Premium Bonds are still part of many people’s savings strategy.” Ms Knight said: “While money invested in Premium Bonds isn’t guaranteed to return you anything, for some financial goals, keeping cash secure until the time comes to use it is the primary objective. “Any growth, in the form of prizes, might be a bonus, but is not the main aim.”