- Increase to Premium Bonds prize fund rate and improved odds from the September 2026 draw
- There will be an estimated £63 million of extra tax-free prizes in September, compared to August 2026
- Immediate interest rate increases for around 428,000 Direct Saver and 222,000 Income Bonds customers
- Increase in British Savings Bonds (Guaranteed Growth, and Guaranteed Income Bonds) interest rates across all term lengths
Over 22 million Premium Bonds holders will see a boost to the prize fund rate to 4.35%, up from 3.80%, for the September 2026 draw. At the same time, holders will have even more chances to win, with the odds shortening to 21,000 to 1 from 22,000 to 1. The Premium Bonds prize fund rate and odds were last improved in July 2026.
Compared to the August 2026 draw, it is estimated that there will be over 308,000 further prizes in the September draw, with the prize pot increasing by around £63 million to over £497 million. In September, there are expected to be 12 additional £100,000 prizes, 27 more £50,000 prizes and an extra 51 £25,000 prizes. Also, there will be over 2.3 million £100 prizes – more than 6.5 million prizes in total.
From today, NS&I customers will see increases to the variable interest rate for savings they hold in Direct Saver (3.75% gross/AER) and Income Bonds (3.69% gross/3.75% AER). The rates were last increased in May 2026.
Both new and existing customers with maturing British Savings Bonds will benefit from new fixed-term Issues with improved interest rates from today. Interest rates have been increased for 1, 2, 3 and 5-year fixed-term Guaranteed Growth Bonds (GGB) and Guaranteed Income Bonds (GIB). Customers with Bonds maturing from 18 August will automatically get the new rate. These replace the Issues that went on sale on 31 July this year.
Andrew Westhead, NS&I Retail Director, said: "Not only is NS&I boosting Premium Bonds from September, but from today we are also increasing interest rates for our British Savings Bonds, plus our Direct Saver and Income Bonds. This is to ensure we reflect current market conditions and help to meet our Net Financing target.
"This is the second time this year we have been able to increase Premium Bonds prize fund rate and shorten the odds. The September Premium Bonds draw is now expected to have more than 6.5 million tax-free prizes worth over £497 million. Premium Bonds continue to offer over 22 million savers of all ages the monthly excitement of tax-free prizes with 100% security backed by HM Treasury, and the flexibility to withdraw at any time.”
Premium Bonds
| Current prize fund rate (from July 2026) | Current odds (from July 2026) | New prize fund rate (from September 2026) | New odds (from September 2026) |
| 3.80% tax-free | 22,000 to 1 | 4.35% tax-free | 21,000 to 1 |
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
| Value of prizes | Number and total value of prizes in August 2026 | Number and total value of prizes in September 2026 (estimate) |
| £1,000,000 | 2 | 2 |
| £100,000 | 83 | 95 |
| £50,000 | 165 | 192 |
| £25,000 | 331 | 382 |
| £10,000 | 827 | 954 |
| £5,000 | 1,654 | 1,909 |
| £1,000 | 17,347 | 19,892 |
| £500 | 52,041 | 59,676 |
| £100 | 1,931,214 | 2,366,135 |
| £50 | 1,931,214 | 2,366,135 |
| £25 | 2,289,959 | 1,717,659 |
| Total: | 6,224,837 £433,663,575 | 6,533,031 £497,326,725 |
Variable rate savings products – Direct Saver and Income Bonds
| Product | Previous interest rate (from 14 May 2026) | New interest rate from 18 August 2026 |
| Direct Saver | 3.45% gross/AER | 3.75% gross/AER |
| Income Bonds | 3.40% gross/3.45% AER | 3.69% gross/3.75% AER |
Fixed-rate savings products – British Savings Bonds
| Product | Previous interest rate (from 31 July 2026) | New interest rate from 18 August 2026 (on general sale) |
| Guaranteed Growth Bonds 1-year (Issue 92) | 4.72% gross/AER | 4.82% gross/AER |
| Guaranteed Income Bonds 1-year (Issue 92) | 4.63% gross/4.72% AER | 4.72% gross/4.82% AER |
| Guaranteed Growth Bonds 2-year (Issue 80) | 4.70% gross/AER | 4.81% gross/AER |
| Guaranteed Income Bonds 2-year (Issue 80) | 4.61% gross/4.70% AER | 4.71% gross/4.81% AER |
| Guaranteed Growth Bonds 3-year (Issue 82) | 4.68% gross/AER | 4.83% gross/AER |
| Guaranteed Income Bonds 3-year (Issue 82) | 4.59% gross/4.68% AER | 4.73% gross/4.83% AER |
| Guaranteed Growth Bonds 5-year (Issue 74) | 4.75% gross/AER | 4.85% gross/AER |
| Guaranteed Income Bonds 5-year (Issue 74) | 4.65% gross/4.75% AER | 4.75% gross/4.85% AER |
Notes to Editors
- Details of previous prize fund rates for Premium Bonds and interest rates for all NS&I products can be found here.
- All Premium Bonds prizes are free of UK Income Tax and Capital Gains Tax.
- 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.
- The gross rate is the rate of interest paid before the deduction of UK Income Tax.
- NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to over 24 million customers, including over 22 million Premium Bonds holders. All products offer 100% capital security as NS&I is backed by HM Treasury.
- 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.
- The Net Financing target for 2026-27 is £15 billion (+/- £4 billion).