NS&I makes major Premium Bonds rate change in win for 22 million customers

NS&I will increase the Premium Bonds prize fund rate in July, in a new win for 22 million savers. Customers will also have more chances to win, with the odds shortening to 22,000 to 1 from 23,000 to 1. The new prize fund rate will be 3.8%, up from 3.3%.

Premium Bonds are a savings account offered by National Savings and Investments (NS&I), one of the largest savings institutions in the UK, backed by the Treasury. The accounts don’t earn interest in the traditional sense. Instead, each bond is entered into a monthly, randomly generated prize draw. Andrew Westhead, NS&I retail director, said: "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.”

Compared to the May 2026 draw, NS&I estimates there will be 322,000 more prizes in the July draw, with the prize pot increasing by more than £60million.

In July, there are expected to be 12 more £100,000 prizes, 24 more £50,000 prizes, and 49 more £25,000 prizes.

Between £25 and £50,000 can be invested in Premium Bonds overall, and prizes of up to £1million can be won at the start of every month. NS&I says the more bonds a person has, the higher their chance of winning a prize.

In May, 5,947,523 tax-free prizes were paid to Premium Bonds prize winners totalling £376,180,825.

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Additionally, starting today, Thursday, May 14, NS&I customers will notice increases in the variable interest rates across four savings accounts. The new rates include:

• Direct Saver: 3.45% gross/AER
• Income Bonds: 3.40% gross/3.45% AER
• Direct ISA: 3.80% gross/AER (tax-free)
• Junior ISA: 3.70% gross/AER (tax-free)

Mr Westhead added: "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."