• Premium Bonds prize fund rate will be 3.80% from the July 2026 draw 
• Odds are shortened to 22,000 to 1 for each £1 Premium Bond held 
• Changes will deliver an estimated 322,000 extra prizes each month compared to May 2026, bringing the total amount paid out to some £436.8 million 
• Increases to interest rates for Direct Saver, Income Bonds, Direct ISA and Junior ISA with immediate effect 
• Increases are a response to changes in the wider savings market and NS&I’s 2026-27 Net Financing target 

Over 22 million Premium Bonds holders will see the prize fund rate increase to 3.80% from the July 2026 draw. At the same time holders will have even more chances to win, with the odds shortening to 22,000 to 1 from 23,000 to 1. The Premium Bonds prize fund rate was reduced in April 2026 along with the odds lengthening. 

Compared to the May 2026 draw it is estimated that there will be 322,000 extra prizes in the July draw, with the prize pot increasing by over £60 million. In July there are expected to be 12 additional £100,000 prizes, 24 more £50,000 prizes and an extra 49 £25,000 prizes. 

From today NS&I customers will also see increases to the variable interest rate for savings they hold in Direct Saver (3.45% gross/AER), Income Bonds (3.40% gross/3.45% AER), Direct ISA (3.80% gross/AER tax-free) and Junior ISA (3.70% gross/AER tax-free). 

Andrew Westhead, NS&I Retail Director, said: "We regularly review our products to ensure they reflect current market conditions, and we're pleased to be able to improve rates across five variable savings accounts today. This reflects changes in the wider savings market and helps ensure we meet our Net Financing target. 

"Premium Bonds offer the monthly excitement of tax-free prizes with 100% security backed by HM Treasury, and the flexibility to withdraw at any time. So, I'm pleased that from July we can improve both the prize fund rate and the odds meaning even more chances to win for our 22 million Premium Bonds holders.” 

Premium Bonds

Since November 1956, Premium Bonds have offered savers an accessible way to save, with the chance to win tax-free prizes. Individuals can hold up to £50,000 in Premium Bonds, including those aged under 16. Premium Bonds offer the security of being 100% backed by HM Treasury. Instead of paying interest, there’s an annual prize fund rate that funds the monthly draw for tax-free prizes. Each £1 Bond purchased is entered into a monthly prize draw, where prizes range from £25 to £1 million, making it an engaging and exciting way to save. 

Number and value of Premium Bonds prizes

Variable rate savings products

Notes to Editors 

1. Details of previous prize fund rates for Premium Bonds and interest rates for all NS&I products can be found here.
2. All Premium Bonds prizes are free of UK Income Tax and Capital Gains Tax.
3. AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year, the gross rate quoted and the AER will be the same.
4. The gross rate is the rate of interest paid before the deduction of UK Income Tax.
5. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments toover24million customers including over 22 million Premium Bonds holders. All products offer 100% capital security as NS&I is backed by HM Treasury.
6. Net Financing is the measure of the net change of NS&I funds, meaning total inflows from deposits, retention of maturing monies and capitalised accrued interest, less the total outflows from withdrawals and interest or Premium Bonds prize draw payments. A positive Net Financing figure represents a positive contribution to government financing.
7. The Net Financing target for 2026-27is £15billion (+/- £4 billion).
8. NS&I photography and logos are available to download here.