Premium Bonds, a popular UK savings product, are set to see their prize rate drop from 3.6% to 3.3% in April 2026, reducing the total prize fund from £408m to £375m. The odds of winning will worsen from 22,000 to one to 23,000 to one per £1 Bond. Research by Vanguard shows that 62% of the 23 million Premium Bond holders have never won a prize.
For savers seeking better odds, several alternatives exist. Chip offers a Prize Savings account with £75,000 in monthly prizes. There is no interest, but every £10 held gives a one in 964 chance of winning, far better than Premium Bonds. Entries are based on the average monthly balance.
Credit union savers can join PrizeSaver, run by the Association of British Credit Unions, with a top prize of £5,000. Every £1 saved earns one entry, but accounts are capped at £200. The Family Building Society's Windfall Bond requires a minimum £10,000 and pays 2.75% interest. Monthly prizes include a £50,000 jackpot, with odds of winning any prize at one in 714.
For those investing, RBS offers a stocks and shares ISA prize draw. Every £50 invested earns one entry, with a top prize of £20,000 and other cash prizes. More investment increases chances. Additionally, some providers like Nationwide make annual Fairer Share payments of £100 to eligible customers.
