Odds of winning with Premium Bonds worsen: Is it time savers looked elsewhere?

National Savings & Investments also revealed it's slashing the Premium Bond prize fund rate.

Millions of Premium Bondholders may be left feeling demoralised after National Savings & Investments (NS&I) today announced it’s reducing the chance of winning in its monthly draws. From the April 2026 draw, the odds of getting your hands on a cash prize will lengthen to 23,000 to one (from 22,000 to one currently).

In a further blow, the Government-backed brand at the same time revealed it’s slashing the Premium Bond prize fund rate from 3.60% to 3.30% - also with effect from the April 2026 draw. This means for every £10,000 of Premium Bonds purchased, NS&I will pay out £330 in prizes on average (down from £360).

“This change to the Premium Bonds prize fund rate and odds reflects changes in the wider savings market, and ensures we continue to balance the interest of savers, taxpayers and the wider financial services sector,” said Andrew Westhead, NS&I Retail Director.

Despite this, Westhead reassured bondholders that the April 2026 draw is still expected to have close to six million tax-free prizes up for grabs, worth around £375 million in total.

Are Premium Bonds worth it?

As well as offering the opportunity to win big, Premium Bonds may appeal to savers as their money is 100% protected by HM Treasury and any prizes are automatically tax-free.

However, Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, warned those with smaller pots that they “may never win a penny” and “could make their money work harder for them”.

“There are lots of easy access accounts which only need £1 to set up, and the pot can then earn some interest. Savers might then feel more inclined to top up the pot regularly towards a specific goal, whereas a Premium Bond could just be forgotten about over time,” she explained.

Even though savings rates have suffered over recent months, inflation easing to 3.0% in January 2026 means it’s still possible for savers to make a real return on their hard-earned cash – particularly as many of the top accounts continue to pay more than 4.00% AER.

“The savings sentiment for consumers can change over time, particularly during times of uncertainty,” said Springall. With interest rates trending downwards, she added it’s important savers take stock of their current situation and consider switching if more competitive returns are available or another type of account better suits their needs.