Premium Bonds Prize Fund Rising to 3.8% in July — What This Means for You
Good news for Premium Bond holders: NS&I is increasing the prize fund rate from 3.3% to 3.8% from the July draw, and your odds of winning are improving too.
If you hold Premium Bonds, you’re about to get a better chance at winning. From July, the odds of scooping a prize on each £1 bond are improving from 23,000 to one down to 22,000 to one. That might not sound like a huge shift, but it does mean your money has a slightly better shot at landing a win.
The prize fund rate itself is jumping from 3.3% to 3.8% — the amount NS&I sets aside for monthly prizes. While this won’t affect individual winnings directly, it reflects NS&I’s confidence in keeping Premium Bonds competitive as a savings option. Prizes range from £50 all the way up to a life-changing £1 million jackpot, with monthly draws giving you chances to win.
This isn’t happening in isolation. NS&I has also announced rate increases across its fixed-term Guaranteed Growth and Income Bonds, and its Green Savings Bonds have jumped from 3.82% to 4.45% for three-year terms. One-year Guaranteed Growth and Income Bonds are now at 4.69%, up from 4.5%.
Could there be more increases on the way? George Sweeney from Finder suggests that if interest rates stay higher for longer, we may see further Premium Bond rate hikes “later in the year”. However, he notes NS&I operates differently to commercial banks — it’s a government-run institution tasked with raising £15 billion for the Treasury this tax year. This means its decisions balance public funding needs with keeping products attractive to savers.
The takeaway: if you’re already a Premium Bond holder, your investment just became slightly more attractive. If you’re considering starting, the July changes make it worth a closer look — especially if you’re comfortable with the fact that Premium Bonds aren’t guaranteed returns, but rather a chance to win prizes alongside your capital being safe.
Check NS&I’s official website for full details of all rate changes and to buy or manage your bonds.