NS&I is changing the rules for Premium Bonds. They will increase the prize fund rate and the chances of winning. They are also increasing rates for other accounts.

The Premium Bonds prize fund rate will go up to 3.8% from July. The odds of winning will get better, from 23,000 to 1 to 22,000 to 1.

This is a big change. NS&I had lowered the prize rate from 3.6% to 3.3% in April. The odds of winning had also gotten worse.

The prize fund rate was lowered three times in 2025. An expert said it's time for NS&I to increase its rates.

An expert said NS&I was behind other accounts. Easy access savers can get over 4% interest, but Premium Bonds only paid 3.3%.

The increase in the prize rate is NS&I trying to catch up with the market. They did the same with fixed rate accounts in April.

An expert was asked if NS&I will raise the rate again. She said it depends on what happens in the world.

There might be more inflation because of war in Iran. This could keep interest rates high.

The market thinks there will be two more rate rises in 2026. This could make easy access rates, including Premium Bonds, go up.

An expert welcomed the change for bondholders. They now have better odds of winning a prize.

The prize fund rate is back to where it was last year. It changes to adjust to interest rates and targets.

Premium Bonds are popular because people might win a lot of money. Winners can get £100,000 or even £1 million.

The odds of winning are low, and most prizes are small. An expert said this might not be the best savings product for everyone.

Some people like Premium Bonds because they might win a lot of money. But if you save for the long term, you might not win anything and lose money to inflation.

NS&I is also increasing rates for four other savings products. The new rates started on May 14.

The new rates are for other NS&I products.