NS&I has confirmed that over 22 million Premium Bonds holders will receive a boost from September, as the prize fund rate rises to 4.35 per cent from 3.80 per cent for the September 2026 draw. The odds of winning will also shorten to 21,000 to 1 from 22,000 to 1, marking the second improvement this year.
Prize Fund Increase and Odds Shortening
The prize fund rate and odds were last improved in July 2026. Compared to the August 2026 draw, it is estimated that there will be over 308,000 further prizes in the September draw, with the prize pot increasing by around £63 million to over £497 million.
In September, there are expected to be 12 additional £100,000 prizes, 27 more £50,000 prizes, and an extra 51 £25,000 prizes. The changes are part of NS&I's efforts to reflect current market conditions and meet its Net Financing target.
Additional Rate Increases and Official Statement
NS&I's Andrew Westhead said: “Not only is NS&I boosting Premium Bonds from September, but from today we are also increasing interest rates for our British Savings Bonds, plus our Direct Saver and Income Bonds. This is to ensure we reflect current market conditions and help to meet our Net Financing target.”
Westhead added: “This is the second time this year we have been able to increase Premium Bonds prize fund rate and shorten the odds. The September Premium Bonds draw is now expected to have more than 6.5 million tax-free prizes worth over £497 million.”
Impact on Savers and Treasury Backing
The move from NS&I, which is backed by the Treasury and the Labour Party government, comes ahead of the September draw at the start of next month. In a statement issued on Tuesday (August 18), Westhead said: "Premium Bonds continue to offer over 22 million savers of all ages the monthly excitement of tax-free prizes with 100 per cent security backed by HM Treasury, and the flexibility to withdraw at any time."
The increased prize fund and shorter odds mean that savers have a better chance of winning, with the September draw expected to deliver a significantly larger prize pot. This change is part of NS&I's ongoing strategy to remain competitive in the savings market while supporting its financing objectives.
