NS&I boosts Premium Bonds odds as 300,000 new cash prizes added to £60m pot
It’s good news for Premium Bonds holders as July is set to be filled with more prizes than before.
NS&I has announced that from the July drawn, the odds of winning them will improve.
In case you’re not actually clued up on what we’re even on about here – let’s clear things up before we get into these new changes.
NS&I Premium Bonds are essentially a savings account you can put money into (and take out when you want) where the interest paid is decided by a monthly prize draw. Every £1 bond has an equal chance of winning, so the more you buy, the more your chances improve.
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And now, NS&I has said the odds for prizes will shorten from 23,000 to one to 22,000 to one for each £1 Premium Bond held.
So, compared with this month’s draw, it’s estimated that July’s will have 322,000 extra prizes with the prize pot increasing by over £60 million.
Andrew Westhead, NS&I retail director, said: “Premium Bonds offer the monthly excitement of tax-free prizes with 100 per cent 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.”
In July there are expected to be 12 additional £100,000 prizes, 24 more £50,000 prizes and an extra 49 £25,000 prizes.
However, the estimated number of £1 million prizes will remain at two.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said that winning is ‘all about luck’ when it comes to Premium Bonds.
She added: “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.”
From today (14 May), NS&I has also increased the variable interest rate for savings held in Direct Saver accounts (to 3.45% AER or annual equivalent rate), Income Bonds (to 3.45% AER), Direct Isas (to 3.80% AER) and Junior Isas (to 3.70% AER).
Springall said: “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%.”
And Sarah Coles, head of personal finance at AJ Bell said: “What happens next for Premium Bonds will depend on the wider world. War in Iran and the resulting rise in the oil price means we could see more inflation.
“This could keep interest rates higher for longer, which in turn would keep easy access rates higher. At the moment, the market is pricing in two more rate rises during the rest of 2026 – and possibly even a third.
“Each rise is likely to push the easy access market higher – including Premium Bonds. It means this might not be the end of the prize rate hikes.”
Jess Battison