Date announced for prize and odds change to come in as bosses say it ‘reflects changes in the wider savings market’
NS&I has said it is reducing prize fund rate and lengthening odds for Premium Bonds(Image: PA)
People with Premium Bonds have been given bad news as NS&I has this morning announced a major change to prize rates and the odds of winning. NS&I is reducing the Premium Bonds prize fund rate to 3.30% with effect from the April 2026 draw, down from 3.60%.
At the same time the odds for each £1 Bond will lengthen to 23,000 to 1 from 22,000 to 1. Andrew Westhead, NS&I Retail Director, said: “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 interests of savers, taxpayers and the wider financial services sector.
“Premium Bonds continue to be the most popular UK savings account. Having recently passed £40 billion in prizes drawn, the April draw is expected to have close to six million tax-free prizes worth around £375 million. Launched 70 years ago in November 1956, Premium Bonds maintain their unique appeal by offering 100% security, the flexibility to withdraw easily, and the excitement of potentially winning a tax-free prize each month.”
The Premium Bonds prize fund rate was last changed in August 2025, and the odds in December 2024.
Current prize fund rate (from August 2025): 3.60% tax-free
Current odds (from December 2024): 22,000 to 1
New prize fund rate (from April 2026) :3.30% tax-free
New odds (from April 2026): 23,000 to 1
People can hold up to £50,000 in Premium Bonds, including those aged under 16. Nine out of ten prizes are paid directly into the holder’s nominated bank account or automatically reinvested into Premium Bonds to go into the next draw. New Premium Bonds purchases need to be held for one full calendar month before being entered into the monthly prize draw.
Martin Lewis has previously weighed in on Premium Bonds following a query from a podcast listener about the optimal destination for their savings. During his BBC programme, coinciding with NS&I’s announcement of the latest winning numbers, he fielded a question from a couple holding £60,000 in bonds who were questioning whether this remained the wisest investment choice.
The personal finance guru, who also presents on ITV, expressed his belief that in the majority of circumstances, savers would be better served by placing their money in a traditional savings account. Caller Josie enquired: “My partner and I have £60,000 in Premium Bonds is it now time to start looking to invest the money somewhere else?”.
Addressing the odds of success, Mr Lewis previously explained before the fund rate went down to 3.3% from 3.6%: “The premium Bond prize fund rate is 3.6 per cent currently. Now what that means is if you were to add up every single Premium Bond in existence in the UK and you take 3.6 per cent of it that’s how much they are paying in prizes in a year.
“Now what that doesn’t mean because it doesn’t work that way is if you put £100 in Premium Bonds you’re going to get £3.60 because that’s impossible. The smallest prize is £25. So what happens on £100 is a lot of people get nothing and a few get £25. That means the mean average is 3.6 per cent but far more important is the median average which is zero on £100 in Premium Bonds over a year.
“Median is if you lined everybody up who had £100 in Premium Bonds from those who win the most to those who win the least what would the person exactly half way along win.”
“I state that so I can explain to you that when I’m going to talk to you about Premium Bonds now, when I talk about someone with average luck, I’m talking about someone who wins the median average amount because that is the best way to address typical luck in Premium Bonds.
“The first thing to say is someone with typical luck will always win less than the mean average, less thank the 3.6 per cent. What affects the amount you win, generally, is the amount you’ve got in. The more you have in the closer you will get to the mean average of 3.6 per cent on typical luck.”