NS&I has announced a major change to Premium Bonds, with an increase to the prize fund rate and improved odds from the September 2026 draw. The prize fund rate will rise to 4.35%, up from 3.80%, and the odds of winning will shorten to 21,000 to 1 from 22,000 to 1.
£63 million in extra prizes
Compared to the August 2026 draw, an estimated £63 million of extra tax-free prizes will be available in September, with over 308,000 further prizes. The prize pot will increase to over £497 million.
The September draw is expected to include 12 additional £100,000 prizes, 27 more £50,000 prizes, and an extra 51 £25,000 prizes. There will also be over 2.3 million £100 prizes, bringing the total to more than 6.5 million prizes.
Interest rate increases for other savings
From today, NS&I customers will see increases to the variable interest rate for Direct Saver (3.75% gross/AER) and Income Bonds (3.69% gross/3.75% AER). This affects around 428,000 Direct Saver and 222,000 Income Bonds customers.
New and existing customers with maturing British Savings Bonds will benefit from new fixed-term Issues with improved interest rates from today. Interest rates have been increased for 1, 2, 3 and 5-year fixed-term Guaranteed Growth Bonds and Guaranteed Income Bonds. Customers with Bonds maturing from 18 August will automatically get the new rate.
NS&I statement
Andrew Westhead, NS&I Retail Director, 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.”
He 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. Premium Bonds continue to offer over 22 million savers of all ages the monthly excitement of tax-free prizes with 100% security backed by HM Treasury, and the flexibility to withdraw at any time.”
