NS&I has issued a statement to clarify the rules surrounding Premium Bonds, just weeks before significant changes to the scheme come into effect. The luck-based savings product remains popular, with each £1 bond entered into a monthly prize draw offering tax-free prizes, including a top prize of £1 million.
Flexibility of Premium Bonds
One key advantage of Premium Bonds is the ability to cash them in at any time, providing flexible access to savings. Savers can withdraw funds by calling NS&I or through their online account. According to the NS&I website: "You can cash in all or part of your Bonds at any time." However, the transfer time to a bank account can take several days, depending on when the request is made.
Unique Rule for Cashing In Specific Bonds
There is a lesser-known rule that allows savers to cash in specific £1 bonds rather than a lump sum. While each bond has the same chance of winning, some customers have an emotional attachment to certain bond numbers—for example, those bought as a gift for a child or for a special occasion. An NS&I spokesperson explained: "Some customers have an emotional connection to specific Bonds numbers... and want to keep hold of them and cash in newer Bonds. They can do this by filling in a form to let NS&I know which ones they wish to keep when they withdraw part of their savings."
Upcoming Changes to Premium Bonds
The prize fund rate is currently 3.3 percent, with odds of winning at 23,000 to one for each £1 bond. However, from the July draw, the prize fund rate will increase to 3.8 percent, and the odds of winning will improve to 22,000 to one. This marks a reversal of recent trends, which saw three cuts to the prize rate in 2025 and another in January 2026. The odds remained at 22,000 to one throughout 2025 before being reduced to 23,000 to one in January 2026.
Many savers opt to reinvest their prize winnings automatically into new bonds, which increases their chances of winning again. Newly purchased bonds are eligible for the next month's draw, whereas standard purchases require a full calendar month before they can enter.
