NS&I  announces Premium Bonds prize increase and odds shorten in boost to holders

NS&I has announced that the Premium Bonds prize fund rate will increase to 3.80% from the July 2026 draw. Holders will have even more chances to win, with the odds shortening to 22,000 to 1 from 23,000 to 1. The Premium Bonds prize fund rate was reduced in April 2026 along with the odds lengthening.

Compared to the May 2026 draw it is estimated that there will be 322,000 extra prizes in the July draw, with the prize pot increasing by over £60 million. In July, there are expected to be 12 additional £100,000 prizes, 24 more £50,000 prizes and an extra 49 £25,000 prizes.

Greig Bingham, Head of Financial Modelling at leading independent financial services consultancy Broadstone, commented: 

“The increase in the Premium Bonds prize fund rate and the shortening of the odds will be welcomed by savers, particularly as it means bond holders are now more likely to win a prize each month. With more than 322,000 additional prizes being added to the draw, NS&I is clearly looking to make Premium Bonds more attractive again following the reductions announced as interest rates dropped.

“What is also notable is the shift in the make-up of prizes. While the total number of prizes is increasing significantly, the proportion of £25 prizes – the smallest available – has fallen from 47% of all prizes to 37%. That means a greater share of the prize fund is being directed towards higher-value prizes, which could make the product feel more rewarding for savers fortunate enough to win.”

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, comments on the latest news from NS&I on the improvement to its Premium Bond, alongside rate increases to selected savings accounts:

“Savers who prefer to keep their pots with NS&I will be delighted to see rates increase, but it is worth noting that the top rates on the market are over 4% on easy access accounts, with some top fixed accounts paying well over 4.50%. However, there is no denying that some savers will forgo higher rates to have their money placed with the brand, as it is 100% backed by HM Treasury.

“This move from NS&I comes at a time where there are expectations for interest to stay higher for longer, so it is important that it remains in a somewhat middle ground space to offer a fair rate, but not lead the market outright. Genuinely, interest rates on savings accounts have been increasing, so now is an ideal time to check the latest deals on the market and review any old pots. 

“The Premium Bond prize rate increasing is a positive signal, and these products are a great option for savers who want the chance to win big, or to even open them as a gift. It’s worth pointing out that the prize fund rate is now back to where it was last year, as it was 3.80% in April 2025. It rises and falls to adjust to the net financing targets and, of course, considers wider interest rate moves. 

“The main drawback to Premium Bonds is that they don’t pay interest, so your deposit erodes in real terms due to inflation, and winning is all about luck. Premium Bonds do not pay a regular income, so a savings account could be a better choice to provide a regular income from a nest egg. Regardless, the fact that savers can open one with just £25 means that Premium Bonds are very accessible and can sit alongside other dedicated savings accounts or investments.

“Interest rates could well increase further this year, unfortunately it’s a bit hard to tell by how much. Expectations are currently driven by concerns over high inflation, so anyone looking at fixed accounts might feel reluctant to lock in. However, it’s important savers understand that different brands can have deals with a shorter shelf-life, such as if a challenger bank reaches its deposit target.”