National Savings and Investments (NS&I), the state-backed savings provider, has announced a significant change to its Premium Bonds prize fund rate, promising an 'extra prize' to 322,000 customers within weeks. The rate will increase to 3.80% from the July 2026 draw, improving the odds of winning for the 22 million Premium Bonds holders.
More Prizes and Better Odds
The new rate means the odds of winning for each £1 Premium Bond will shorten to 22,000 to 1, compared to the current odds. This shake-up will deliver an estimated 322,000 extra prizes each month compared to May 2026, bringing the total monthly payout to approximately £436.8 million. In July, there will be an additional 12 prizes of £100,000, 24 more of £50,000, and 49 extra £25,000 prizes.
Savings Account Rate Increases
Alongside the Premium Bonds changes, NS&I is increasing variable interest rates on several savings accounts. The new rates are: Direct Saver at 3.45% gross/AER, Income Bonds at 3.40% gross (3.45% AER), Direct ISA at 3.80% gross/AER tax-free, and Junior ISA at 3.70% gross/AER tax-free.
Andrew Westhead, NS&I Retail Director, commented: 'We regularly review our products to ensure they reflect current market conditions, and we're pleased to be able to improve rates across five variable savings accounts today. This reflects changes in the wider savings market and helps ensure we meet our Net Financing target.'
He added: 'Premium Bonds offer the monthly excitement of tax-free prizes with 100% security backed by HM Treasury, and the flexibility to withdraw at any time. So, I'm pleased that from July we can improve both the prize fund rate and the odds meaning even more chances to win for our 22 million Premium Bonds holders.'
Since their launch in November 1956, Premium Bonds have provided savers with an accessible way to save while offering the chance to win tax-free prizes. Individuals can hold up to £50,000 in Premium Bonds, including those under 16.
