NS&I has confirmed a significant rule change for all 24 million Premium Bonds holders, effective from July 2026. The government-backed savings institution, under the Treasury and Labour government, announced that the prize fund rate will increase to 3.80 per cent for the July 2026 draw.
Improved Odds and Prize Pot
The odds of winning a prize will shorten from 23,000 to 1 to 22,000 to 1, meaning more chances for savers. This adjustment reverses the reduction made in April 2026, when the rate was cut and odds lengthened. The change will result in an additional 322,000 prizes in next month's draw compared to May and June, increasing the prize pot by over £60 million.
Expert Commentary
Rachel Springall, finance expert at Moneyfactscompare.co.uk, noted: "Savers who prefer NS&I will be delighted to see rates increase, but top easy access accounts offer over four per cent, with some fixed accounts paying well over 4.50 per cent. However, the 100 per cent Treasury backing is a key attraction." She added that the move comes amid expectations of higher interest rates, positioning NS&I as a middle-ground option.
June Draw Details
In the June draw, 5,954,593 tax-free prizes totalling £376,627,975 will be paid to winners, with 136,955,621,672 £1 Bonds eligible. Since the first draw in June 1957, total prizes have reached 839 million worth £41.5 billion.
Andrew Westhead, NS&I Retail Director, said: "Agent Million has brightened summer for two £1 million jackpot winners from Leeds and Cheshire & West Chester. This month, ERNIE drew over 5.9 million prizes totalling over £376 million, and with improved rates and odds, there will be even more prizes next month."
Considerations for Savers
Rachel Springall highlighted that while the rate increase is positive, Premium Bonds do not pay interest, meaning deposits erode in real terms due to inflation. She advised: "Savings accounts may be better for regular income, but Premium Bonds offer the chance to win big and can be opened as gifts."
