Premium Bondholders have more chances to win as NS&I boosts prize pot by £63 million

The Government-backed brand has also raised the rates on its British Savings Bonds for the second time in a month.

Millions of Premium Bondholders will have more chances to win from next month’s prize draw after National Savings & Investments (NS&I) announced today that it’s shortening the odds to 21,000 to one (from 22,000 to one currently).

What’s more, the Government-backed brand is adding 308,000 extra prizes (worth an estimated £63 million) to the pot – boosting its Premium Bond prize fund rate from 3.80% to 4.35%. This means that for every £10,000 of Premium Bonds purchased, NS&I will pay out £435 in prizes on average (up from £380).

“This is the second time this year we have been able to increase the Premium Bonds prize fund rate and shorten the odds,” said Andrew Westhead, NS&I Retail Director. “The September Premium Bonds draw is now expected to have more than 6.5 million tax-free prizes worth over £497 million,” he continued.

However, Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, warned savers not to conflate the prize fund rate with earning interest.

“Premium Bonds can be a fun and unconventional way to win tax-free cash,” she explained, adding that they may particularly appeal to savers “who have already used their ISA allowance or are likely to breach their Personal Savings Allowance”. But, despite the improved odds, Eastell reminded savers that Premium Bonds “are a game of chance” and returns aren’t guaranteed.

British Savings Bonds increased for a second time in a month

Those who don’t want to leave their returns to chance may be pleased to learn that NS&I has also increased the rates paid by its British Savings Bonds for the second time in the space of a month. The new issues, which went on sale today, pay fixed rates of up to 4.85% AER.

^{Source: National Savings & Investments}

Each of these accounts performs competitively within their respective sectors; in fact, the one-year Guaranteed Growth and Income Bonds currently occupy second place on our one-year fixed bond chart (correct as of 18 August 2026).

While it’s still possible to secure a higher return elsewhere – with the very best fixed rate savings accounts offering 5.00% AER – products from NS&I are uniquely 100% backed by HM Treasury which may add to their appeal (particularly among those with larger balances). By contrast, any money held in a standard savings account is usually only protected up to £120,000 by the Financial Services Compensation Scheme (FSCS).

Savers can apply for a British Savings Bond online with a minimum deposit of £500 but should consider their opening amount carefully as neither further additions nor withdrawals are allowed. They’ll then receive interest on anniversary from the Guaranteed Growth Bonds, while the Guaranteed Income Bonds offer monthly returns.

Meanwhile, those who want to keep their cash close to hand will find NS&I has also raised the rates on its easy access accounts with effect from today. But, with its Direct Saver and Income Bonds each now paying 3.75% AER (variable, up from 3.45% AER previously), it should be noted that much more competitive rates are available.