Premium Bonds holders will have better chances of winning from September 2026 after National Savings and Investments (NS&I) announced another increase to its prize fund rate and improved the odds for each eligible Ā£1 Bond.
The prize fund rate will rise from 3.80% to 4.35%, while the odds improve from 22,000-to-1 to 21,000-to-1. More than 22 million Premium Bonds customers could benefit from the changes, although winning remains entirely based on chance.
What changes for Premium Bonds in September?
NS&I estimates the September draw will contain 6,533,031 prizes worth Ā£497,326,725, compared with 6,224,837 prizes worth Ā£433,663,565 in August.
That works out at roughly 308,000 additional prizes and almost Ā£64 million more prize money in a single monthly draw.
The two Ā£1 million jackpots remain unchanged, but the number of several other high-value prizes increases.
- Ā£1 million: 2 prizes
- Ā£100,000: 95, up from 83
- Ā£50,000: 192, up from 165
- Ā£25,000: 382, up from 331
- Ā£10,000: 954, up from 827
- Ā£5,000: 1,909, up from 1,654
- Ā£1,000: 19,892, up from 17,347
- Ā£500: 59,676, up from 52,041
- Ā£100: 2,366,135, up from 1,931,214
- Ā£50: 2,366,135, up from 1,931,214
- Ā£25: 1,717,659, down from 2,289,959
The September figures are estimates and may change depending on the value of eligible Bonds in the draw.
Why are Ā£25 prizes being reduced?
Although there will be more prizes overall, NS&I is shifting part of the prize distribution away from Ā£25 awards.
There are expected to be about 572,300 fewer Ā£25 prizes than in August. At the same time, the number of Ā£50 and Ā£100 prizes rises sharply, alongside increases across several higher-value categories.
Does 4.35% mean you will earn 4.35%?
No. The prize fund rate should not be treated like the interest rate on a savings account.
Premium Bonds pay no regular interest. Instead, the rate determines the overall amount NS&I makes available for prizes. A holder could therefore receive more than the equivalent of 4.35%, less than that amount, or nothing.
For perspective, 4.35% of the maximum Ā£50,000 holding equals Ā£2,175, but a Premium Bonds holder is not guaranteed Ā£2,175 a year.
The official NS&I Premium Bonds guidance explains the prize system, eligibility and tax-free treatment.
Premium Bonds have improved twice in 2026
The latest increase follows another improvement earlier this summer. The prize fund rate was 3.30% in April, increased to 3.80% from July and will reach 4.35% from September.
Over the same period, winning odds have improved from 23,000-to-1 to 22,000-to-1 and now 21,000-to-1.
How much can you hold?
The minimum Premium Bonds purchase is Ā£25, while each person can hold up to Ā£50,000.
Every eligible Ā£1 Bond has the same chance of winning. Someone holding Ā£50,000 simply has more Bond numbers entered into each draw than someone holding Ā£1,000.
Recent data obtained through a freedom of information request highlights the effect of smaller holdings. AJ Bell said 62% of Premium Bonds holders had never won a prize, while fewer than 1% of prizes awarded between February 2025 and January 2026 went to accounts holding less than Ā£1,000.
Southampton Premium Bonds Winners August 2026: Latest Prize Results
Premium Bonds Update: NS&I Prize Rate and Odds Changes for 2026
When do new Premium Bonds become eligible?
New Bonds normally need to be held for one complete month before they enter a prize draw. Buying Bonds shortly before a draw therefore does not mean they will participate immediately.
Existing holders do not need to do anything to receive the improved September odds. Eligible Bond numbers will automatically participate under the new terms.
Are Premium Bonds tax-free and safe?
Premium Bonds prizes are free from UK Income Tax and Capital Gains Tax, which can make them attractive to savers concerned about tax on conventional savings interest.
Money held with NS&I is also 100% backed by HM Treasury. Premium Bonds are not fixed-term products, so holders can cash in some or all of their Bonds when required.
Tax-free savings may become increasingly important as households review their finances. The UK Budget 2026 tax, pension and benefit changes provide wider context for people considering how tax changes could affect their money.
Premium Bonds or a savings account?
The improved prize rate makes Premium Bonds more competitive, but they serve a different purpose from a savings account. A savings account pays interest according to its terms, while Premium Bonds exchange guaranteed interest for the chance to win tax-free prizes between Ā£25 and Ā£1 million.
This means savers seeking predictable returns should compare available savings rates before moving money. Inflation also matters because someone who wins little or nothing could see the real purchasing power of their Premium Bonds balance decline.
The broader UK savings environment is changing too, including planned restrictions on how much some savers can place into cash ISAs from April 2027. Our coverage of the new UK tax and savings changes explains the wider financial backdrop.
For Premium Bonds holders, September nevertheless represents a clear improvement: a larger Ā£497 million prize pot, more than 6.5 million expected prizes and better odds of winning ā without changing the central fact that no individual return is guaranteed.
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