NS&I reduces prize fund rate and lengthens odds for Premium Bonds

NS&I has reported this morning that it is reducing the Premium Bonds prize fund rate to 3.30% with effect from the April 2026 draw, down from 3.60%. At the same time the odds for each £1 Bond will lengthen to 23,000 to 1 from 22,000 to 1.

The Premium Bonds prize fund rate was last changed in August 2025, and the odds in December 2024.

Andrew Westhead, NS&I Retail Director, said: “This change to the Premium Bonds prize fund rate and odds reflects changes in the wider savings market, and ensures we continue to balance the interests of savers, taxpayers and the wider financial services sector. 

“Premium Bonds continue to be the most popular UK savings account. Having recently passed £40 billion in prizes drawn, the April draw is expected to have close to six million tax-free prizes worth around £375 million. Launched 70 years ago in November 1956, Premium Bonds maintain their unique appeal by offering 100% security, the flexibility to withdraw easily, and the excitement of potentially winning a tax-free prize each month.”

Since November 1956, Premium Bonds have offered savers an accessible way to save, with the chance to win tax-free prizes. Instead of paying interest, there’s an annual prize fund rate that funds the monthly draw for tax-free prizes. Each £1 Bond purchased is entered into a monthly prize draw, where prizes range from £25 to £1 million, making it an engaging way to save.

Individuals can hold up to £50,000 in Premium Bonds, including those aged under 16. Nine out of ten prizes are paid directly into the holder’s nominated bank account or automatically reinvested into Premium Bonds to go into the next draw. New Premium Bonds purchases need to be held for one full calendar month before being entered into the monthly prize draw.

Number and value of Premium Bonds prizes