NS&I Relaunches Premium Bonds with New Rate Confirmed for Savers

NS&I has confirmed a new prize fund rate for Premium Bonds as part of its regular review of savings products in response to market conditions.

The prize fund rate for Premium Bonds will be set at 3.30% for the April 2026 draw, down from the current rate of 3.60% that has been in effect since August 2025.

At the same time, the odds of winning a prize for each £1 Bond will change from 22,000 to 1 to 23,000 to 1, marking the first adjustment to the odds since December 2024.

NS&I estimates that approximately £375 million in tax-free prizes will be paid out in the April 2026 draw, with close to six million prizes expected to be awarded.

The changes reflect NS&I’s ongoing effort to balance the interests of savers, taxpayers, and the broader financial services sector amid shifting market conditions.

Premium Bonds continue to be the UK’s most popular savings product, with over £40 billion in prizes having been drawn since the product’s launch in November 1956.

Each £1 Bond is entered into a monthly prize draw, where winners can receive tax-free prizes ranging from £25 to £1 million, offering a unique savings option with full government backing and 100% capital security.

Individuals can hold up to £50,000 in Premium Bonds, including holdings on behalf of children under the age of 16.