The prize fund rate will drop from 3.6% to 3.3%, and the odds will be lengthened from 22,000 to one to 23,000 to one, NS&I said.
NS&I, which is backed by the Treasury, has a duty to balance the interests of its savers, taxpayers and the market.
It is set targets for the amount of net finance it needs to raise each year for the government.
What is a Premium Bond?
Andrew Westhead, retail director at NS&I, 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 changes follow a cut to the Bank of England base rate in December, with further reductions still a possibility.
Instead of earning interest, Premium Bonds offer the chance to win tax-free prizes through a monthly draw.
Prizes range from £25 up to £1 million, but the number of higher-value prizes will decrease under the revised rate.
🎉 That winning feeling!
The moment one of our latest Premium Bonds winners discover they’ve just won £1 million 💷 pic.twitter.com/NPOjSKDCRQ— nsandi (@nsandi) February 17, 2026
In April, £1 million prizes will remain at two, but £100,000 prizes are expected to fall to 71 in April from 78 in February.
The number of £50,000 prizes will drop to 143 in April from 154 in February, and £25,000 prizes are set to fall to 284 in April from 311 this month.
The estimated number of £10,000 prizes will also decline, from 777 to 712 in the same period.
However, the number of £25 prizes will rise to about 2,806,003, up from 2,643,007 in February.
The total number of prizes in the April draw is expected to be 5,943,029, down from 6,183,066 in February.
Laura Suter, director of personal finance at AJ Bell, said: “The Premium Bond ‘prize fund rate’ is intended to give savers some comparison with how the account compares to normal savings accounts.”
📱 Have you checked the Premium Bonds prize checker app yet to see if you’ve won one of the 6 million prizes paid out this month?
💷 One saver won £100,000 from £150 worth of Bonds purchased in 2022.
See the full high value prize list here 👇https://t.co/kLBW8YBpcq pic.twitter.com/qFWGCh3SkY— nsandi (@nsandi) February 5, 2026
But she said: “Clearly not everyone has ‘average’ luck, otherwise the prizes would be handed out equally to every saver.
“The fact that there are some very large prizes also skews the figures.”
Ms Suter added: “Savers with money in Premium Bonds should really think about whether the account is right for them.
“Considering many Premium Bond holders will never win a prize and the average expected return is lower than the top easy access account, savers could well be better off with a guaranteed return elsewhere.
“Despite interest rate cuts, these accounts are still likely to continue to be very popular as they are backed by NS&I, and many savers have huge brand loyalty to the organisation.”