There are many prizes up for grabs every month
There are many prizes up for grabs every month
Major changes to the Premium Bonds prize rate has been announced by National Savings and Investments, it will be cut from 3.6% to 3.3% from the April 2026 draw. It is also lengthening the odds for each £1 bond winning a prize to 23,000 to 1 from the current 22,000 to 1.
The prize fund rate for the savings service was last changed in August 2025, following reductions in April 2025 and in January 2025. There will be fewer chances to win Premium Bond prizes from the April draw after savings giant NS&I announced the changes.
NS&I, which is backed by the Treasury, has a duty to balance the interests of its savers, taxpayers and the market and it is set targets for the amount of net finance it needs to raise each year for government.
Andrew Westhead, NS&I retail director, 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.”
Instead of paying interest, Premium Bonds offer savers an annual prize fund rate that funds the monthly draw for tax-free prizes. Each £1 bond purchased is entered into a monthly draw, where prizes range from £25 to £1 million.
The estimated number of £1 million prizes is set to remain unchanged in April, at two. The estimated number of £100,000 prizes is expected to fall to 71 in April, from 78 in February. NS&I also said the number of £50,000 prizes will fall from 154 in February to an estimated 143 in April.
There will be around 284 prizes worth £25,000 in April, down from 311 in February. The estimated number of £10,000 prizes will fall from 777 to 712 over the same period. However, the number of £25 prizes will go up, with around 2,806,003 predicted for April, compared with 2,643,007 in February.
People can hold up to £50,000 in Premium Bonds, including those aged under 16. All Premium Bonds prizes are free of UK Income Tax and Capital Gains Tax, so winners can keep the entirety of the money they win.
You get a unique bond number for every £1 invested, and you can invest from £25 up to £50,000 in total in Premium Bonds. If you need to withdraw your funds, you can cash in all or part of your Premium Bonds at any time.
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