What Happened
National Savings and Investments (NS&I) has announced a reduction in the Premium Bonds prize fund rate, effective from the April 2026 draw. The rate will decrease from 3.6% to 3.3%, resulting in a total prize distribution of approximately £375 million, down from £408 million in February.
Why It Matters
This adjustment will lead to a decrease in the overall number of Premium Bonds prizes, dropping from 6,183,066 in February to an estimated 5,943,029 in April. The odds of winning will also lengthen from 22,000 to one to 23,000 to one. Despite these changes, NS&I expects to maintain close to six million tax-free prizes in the upcoming draw.
What’s Next
As the prize fund rate has been cut six times since September, this latest change reflects broader trends in the savings market. NS&I aims to balance the interests of savers, taxpayers, and the financial services sector. The number of £25 prizes will increase, while the number of £1 million prizes will remain unchanged at two per month.