Major changes to Premium Bonds are coming in soon
NS&I has clarified the rules for Premium Bonds(Image: Getty)
NS&I has issued a statement to explain the rules surrounding Premium Bonds. Big changes to the scheme are set to take effect shortly.
The lottery-style savings product remains a popular choice a among savers, with every £1 Bond entered into a monthly prize draw offering an equal opportunity to win a prize, worth up to £1million. A notable benefit of
Premium Bonds is the option to withdraw them whenever you see fit, making them an attractive option for those seeking flexible, easy access savings. This can be arranged either by contacting provider NS&I by telephone or through your online account.
Information on the NS&I website confirms: “You can cash in all or part of your Bonds at any time.” The funds can take several days to reach your bank account, depending on when you make the withdrawal request.
Nevertheless, there is one peculiar regulation concerning cashing in your Bonds. Savers have the option to withdraw specific £1 Bonds.
At first, this might appear an unnecessary provision, given that every £1 Bond has the very same probability of winning a prize each month, provided it qualifies to go into the prize draw. The current winning odds stand at 23,000 to one, though this is due to change imminently.
NS&I statement
NS&I was questioned about the rationale behind this policy. A spokesperson said: “Premium Bonds are one of the UK’s most popular savings products, offering customers the chance to win tax-free prizes each month and the flexibility to manage their savings.
“This includes being able to cash in all or part of their savings when they need. Some customers have an emotional connection to specific Bonds numbers such as ones they were bought as a child or for a special occasion and want to keep hold of them and cash in newer Bonds.
“They can do this by filling in a form to let NS&I know which ones they wish to keep when they withdraw part of their savings.”
Changes to Premium Bonds coming soon
The prize fund rate for the scheme currently stands at 3.3 per cent, with odds of winning at 23,000 to one for each £1 Bond. But there’s good news on the horizon for savers, as your prospects of securing a prize are set to improve.
From the July draw, the prize fund rate will rise to 3.8 per cent, while the odds of winning will improve to 22,000 to one. This marks a reversal of recent trends, following three reductions to the prize rate during 2025, plus a further cut in January 2026.
Throughout 2025, the odds remained constant at 22,000 to one before being reduced to 23,000 to one in January 2026. Many savers opt to configure their accounts so that any winnings are automatically reinvested into additional Bonds.
This strategy boosts your odds of future wins. An added advantage of this is that your newly acquired Bonds become eligible for the following month’s draw.
In contrast, when your purchase fresh Bonds manually, there’s a waiting period of a full calendar month before they can enter the next prize draw.