Hundreds of thousands more people could be in with a chance of winning Premium Bonds prizes from July, with NS&I (National Savings and Investments) improving the draw odds.
The chances of winning a prize will improve from 23,000-to-one to 22,000-to-one from the July 2026 draw.
NS&I said this change will create an estimated 322,000 additional prizes in July, with the total prize fund increasing by more than £60 million.
The number of £1 million prizes will remain at two.
However, there are expected to be additional winners in the other major categories, including:
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£100,000 – additional 12 winners
Premium Bond holders urged to check for “latest deals”
NS&I has also raised the variable interest rate on several savings products.
From Thursday (May 14), the Direct Saver and Income Bonds accounts now pay 3.45% AER, the Direct ISA pays 3.80% AER, and the Junior ISA pays 3.70% AER.
Finance expert at Moneyfactscompare.co.uk, Rachel Springall, said: “Savers who prefer to keep their pots with NS&I will be delighted to see rates increase, but it is worth noting that the top rates on the market are over 4% on easy access accounts, with some top fixed accounts paying well over 4.50%.”
She added: “This move from NS&I comes at a time where there are expectations for interest to stay higher for longer.”
The finance expert encouraged savers to review their options, adding: “Now is an ideal time to check the latest deals on the market and review any old pots.”
Are Premium Bonds “worth it”?
Ms Springall said that Premium Bonds do not generate regular income, reminding holders that “winning is all about luck”.
She said: “Premium Bonds do not pay a regular income, so a savings account could be a better choice to provide a regular income from a nest egg.”
Head of personal finance at AJ Bell, Sarah Coles, explained that the outlook for Premium Bonds depends on wider economic factors.
Ms Coles said: “War in Iran and the resulting rise in the oil price means we could see more inflation.
“This could keep interest rates higher for longer, which in turn would keep easy access rates higher.
“At the moment, the market is pricing in two more rate rises during the rest of 2026 – and possibly even a third.”
Money Saving Expert founder Martin Lewis has also previously spoken on This Morning about whether Premium Bonds are “worth considering”.
Answering a viewer’s question on the ITV show, Mr Lewis said: “For some people. It’s quite complicated.”
Adding: “The Premium Bonds prize rate is 3.80%, which is less than the top savings accounts.
“But actually, if you have typical luck, which is based on the median average, you will earn less than 4.65%.”
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Lewis then explained how for two to win big, many have to lose: “Think about it this way, for every person that wins £1 million, a lot of people have to win nothing, which is why on average, with typical luck, you get less than 4.65%.
“The maximum is £50,000. So, as a general rule of thumb, if you are a higher or top-rate taxpayer, you have enough savings that you pay interest on it, and you’re looking at putting a large amount in, they can be a pretty good bet.
“If you’re looking at putting a few hundred quid in and you don’t pay tax on your savings, you would be a lot better off with a normal savings account where you’re guaranteed to get the interest.”
Are you a Premium Bond owner? Have you ever won money in one of the monthly prize draws before? Let us know in the comments below.