There will be an estimated £63 million of extra tax-free prizes in September and immediate interest rate increases
NS&I has announced a major change to Premium Bonds from September(Image: Getty)
A major change has this morning been announced to millions of people with Premium Bonds. NS&I today said that there will be an increase to the 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, NS&I said. There is also an immediate interest rate increases for around 428,000 Direct Saver and 222,000 Income Bonds customers.
More than 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