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The odds of winning Premium Bonds prizes will improve from the July draw, provider NS&I has announced.
The odds will shorten to 22,000 to one, from 23,000 to one, for each £1 Premium Bond held, the Treasury-backed savings giant said.
Compared with the May 2026 draw it is estimated that there will be 322,000 extra prizes in the July draw, with the prize pot increasing by more than £60 million.
In July there are expected to be 12 additional £100,000 prizes, 24 more £50,000 prizes and an extra 49 £25,000 prizes.
The estimated number of £1 million prizes will remain at two.
From Thursday, NS&I has also increased the variable interest rate for savings held in Direct Saver accounts (to 3.45% AER or annual equivalent rate), Income Bonds (to 3.45% AER), Direct Isas (to 3.80% AER) and Junior Isas (to 3.70% AER).
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, 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.”
Ms Springall said that with interest rates on savings accounts increasing, “now is an ideal time to check the latest deals on the market and review any old pots.”
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She added that with Premium Bonds, winning is “all about luck,” adding: “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.”
Sarah Coles, head of personal finance at AJ Bell said: “What happens next for Premium Bonds will depend on the wider world. 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.
“Each rise is likely to push the easy access market higher – including Premium Bonds. It means this might not be the end of the prize rate hikes.”
Ms Coles added: “The cash Junior Isa rate is now pretty competitive.
“If you’re opening one for an older teenager who needs the money at 18, this could be a decent option. However, for younger children, with a longer time-horizon, investment often makes far more sense.”
The value of investments can go down as well as up.
