The National Agency for Savings and Investment (NS&I) cut prime bond rates from 3.6% to 3.3% in the April 2026 draw, the latest cut in returns on government-backed savings products.
The Treasury-backed bank has also increased the odds of winning a £1 bond to 23,000 to 1, up from 22,000 to 1 previously.
The bonus fund rates on the popular savings product were last adjusted in August 2025, while the odds were last adjusted in December 2024.
These changes reduce the number of high-value prizes available. The number of £100,000 prizes has dropped from 78 in the last draw to 71 in April. There were 143 prizes worth £50,000, down from 154 in March, and 285 prizes worth £25,000, down from 311 in March.
Read more: Are you the winner of the April 2026 Premium Bond Draw?
NS&I retail director Andrew Westhead said: “Changes to premium bond reward fund rates and odds reflect changes in the wider savings market and ensure we continue to balance the interests of savers, taxpayers and the wider financial services sector.”
NS&I says Prime Bonds remain the UK’s most popular savings account, with recent draws exceeding £40bn since its launch in November 1956.
Premium bonds pay no interest, but instead offer savers the chance to win tax-free bonuses through monthly draws funded at the annual bonus fund rate. Every £1 of bonds purchased is entered into a draw with prizes ranging from £25 to £1 million.
Premium bonds can be held by individuals up to £50,000, including children under 16 years of age. Newly purchased bonds must be held for a full calendar month to be eligible for the monthly drawing.
Premium bonds have long been a favorite among UK savers looking for the chance to win tax-free cash rewards. However, while they offer exciting monthly prize draws, how likely are you to win, and is your money really going to work for you?
In 2025 alone, NS&I paid out more than £4.95 billion on 71.7 million prizes, making it one of the highest payout years on record. December 2025 was particularly busy for the ERNIE (Electronic Random Number Indicator Equipment), the machine used to generate the winning numbers for the UK’s monthly Premium Bond draw, generating more than 6.1 million prizes worth £403.8 million.
Premium bonds are not traditional savings products because they do not earn interest. Instead, every £1 invested buys a bond and is entered into a monthly draw. Prizes range from £25 to £1 million and all prizes are tax-free. Although prizes are chosen at random, the more bonds you hold, the better your chances of winning. Importantly, the number of bonds held has nothing to do with when or where they were purchased.
Read more: Four alternatives to high-quality bonds with better win rates and returns on savings
The bonus rate (NS&I’s closest rate) starts at 3.30% on April 1 and peaks at 4.65% in late 2023. This means that for every £100 invested, you will receive a bonus of £3.30 per year.
The rate is variable, meaning it can change based on changes in the wider savings market or the Bank of England base rate. However, this 3.30% figure is just an average, meaning most savers will see returns well below this level.
According to NS&I, the odds of winning any single bond are currently 1 in 23,000. But for savers hoping for a big payout, the figures tell a more sobering story.
For example, if you invested £1,000 in a good bond, you would have to wait approximately 3,500 years to have a 50-50 chance of winning £1,000. To achieve the same odds of winning £50, it would take more than 200 years. Meanwhile, a 50/50 chance of winning the £1 million jackpot would have to wait 3.2 million years.
Even if you maximize your holdings to £50,000, the possibilities are still daunting. Data scientist Andrew Zelin, who analyzed the figures on behalf of the Home Building Society, said it would take around 60 years to stand a chance of winning the £1,000 prize, and more than 64,000 years to win the £1 million prize.
The chance of winning the £1 million jackpot in one year is 1 in 49,563,028.
Read more: NS&I cuts UK savings bond rates, savers’ returns fall
Figures for 2025 show similar unpredictability. A jackpot winner from Cleveland who held just £100 won £1 million – the second-smallest prize ever won. Another December jackpot winner purchased the winning bond earlier that year, in February.
A total of 24 new millionaires will be created in 2025, and ERNIE has created 568 millionaires since the launch of the £1 million prize in 1994.
While the life-changing chances remain slim, 2025 has also seen some unusual occurrences – someone in Greater London won £100,000 in March on a £14 property purchased in 1977. Another saver won £50,000 in July by holding £71 in 1962.
Premium Bonds act as an easy-to-use savings account with a draw bonus and pose no risk to your capital as they are backed by HM Treasury. But since there’s no guaranteed interest, your money doesn’t grow unless you win – meaning inflation will erode its value over time.
Read more: The best savings accounts after inflation eases
If you’re looking for a stable return on your savings, fixed-rate bonds from banks and building societies can offer better rates. If you’re willing to lock your money for a fixed period, these accounts offer guaranteed interest, which is currently around 4.5% with some lenders.
Mark Hicks, active savings director at Hargreaves Lansdown, said: “Quality bonds hold a special place in people’s hearts and the chance to win tax-free bonuses of up to £1 million is a huge incentive to save. However, the odds of winning anything get even better, from 22,000 to 1 to 23,000 Compared to 1, the bonus rate has also been slashed to 3.30% – a timely reminder if you can get more for your money elsewhere.
“Quality bonds don’t pay interest – their rates are more of a benchmark for the average return on your money. However, the reality is that if you’re not winning anything, you’re getting nothing. It’s well worth looking at the wider savings market to see what deals are available. Cash ISA rates remain incredibly competitive until the end of the tax year, with a market-leading direct rate of 4.3% available on our Active Savings platform. Savers can also earn more than 4% by taking advantage of fixed terms The interest rates are available on the market for regular savings and cash ISA accounts.
“It’s also well worth considering a junior ISA as an alternative for kids with a longer-term view. Growth and income is tax-free, just like a good bond, but if you invest your money for five to ten years or more, there’s real growth potential, and your money has a better chance of growing, significantly faster than inflation.”
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Still, high-quality bonds remain extremely popular. In 2025, more than 470,000 people opened new accounts, with an average opening balance of £10,674. Of these, more than 77,000 children have won more than 1.3 million prizes worth £91.7 million, including 22 Child Millionaires and senior winners.
You can purchase them directly from NS&I in a number of ways:
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Go online to nsandi.com
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Call 08085 007 007
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Send application form by post to NS&I, Sunderland SR43 2SB
The minimum purchase is £25 and you must be 16 or over to purchase. The parent or guardian is responsible for paying premiums until the child’s 16th birthday.
You can reinvest any winnings up to a limit of £50,000 or have it paid into your bank account.
NS&I will notify you via email if you are lucky enough to win, or you can check your deposit through your online account or Prize Checking App. The biggest winners – those lucky enough to receive the £1 million prize – will receive a personal visit from NS&I representatives known as the ‘Million Agents’.
In 2025, Agent Million traveled across the UK, from northeast Scotland to Cornwall, delivering news to 24 jackpot winners. Norwich and Cumbria were particular hotspots, each producing two millionaires.
If you forget your deposit or miss out on a win, you can register with NS&I online or by phone to update your details and check for unclaimed prizes. NS&I allows you to claim bonuses as far back as 1957, the year the Premium Ponds Program began.
Overall, there are 2,754,285p in Premium Bond prizes up for grabs, worth £118m.
NS&I also offers fixed-rate savings products, such as Guaranteed Growth Bonds and Guaranteed Income Bonds, which offer more predictable returns over two-, three- or five-year terms. The bonds, which range in price from £500 to £1 million, are backed by the Treasury and provide comprehensive protection regardless of the amount deposited.
However, NS&I lowered the interest rates on these bonds, following the general trend in the savings market. The two-year growth bond has an interest rate of 3.98%, while the five-year option has an interest rate of 4.05%.
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