NS&I is raising the Premium Bonds prize fund rate to 4.35% from 3.80% for the September 2026 draw, with odds shortening to 21,000 to 1 from 22,000 to 1. It is the second increase this year, after the rate was last improved in July 2026.
The prize pot is rising by around £63m to more than £497m, with over 308,000 more prizes than in August. September's draw will include 12 more £100,000 prizes, 27 more £50,000 prizes and 51 more £25,000 prizes, taking the total past 6.5 million winners, including more than 2.3 million at £100 each.
Premium Bonds do not pay interest directly. Instead, an annual prize fund rate finances a monthly draw for tax-free prizes ranging from £25 to £1m. Holders can save up to £50,000 each, with a minimum £1 bond, and the scheme is 100% backed by HM Treasury.
Number and value of Premium Bonds prizes
|
Value of prizes |
Number and total value of prizes in August 2026 |
Number and total value of prizes in September 2026 (estimate) |
|
£1,000,000 |
2 |
2 |
|
£100,000 |
83 |
95 |
|
£50,000 |
165 |
192 |
|
£25,000 |
331 |
382 |
|
£10,000 |
827 |
954 |
|
£5,000 |
1,654 |
1,909 |
|
£1,000 |
17,347 |
19,892 |
|
£500 |
52,041 |
59,676 |
|
£100 |
1,931,214 |
2,366,135 |
|
£50 |
1,931,214 |
2,366,135 |
|
£25 |
2,289,959 |
1,717,659 |
|
Total: |
6,224,837 £433,663,575 |
6,533,031 £497,326,725 |
Source: NS&I
Andrew Westhead, NS&I retail director, said: "Not only is NS&I boosting Premium Bonds from September, but from today we are also increasing interest rates for our British Savings Bonds, plus our Direct Saver and Income Bonds. This is to ensure we reflect current market conditions and help to meet our net financing target."
The Direct Saver rate increases to 3.75% gross/AER from 3.45%, affecting around 428,000 customers, while Income Bonds rise to 3.69%/3.75% gross/AER from 3.40%/3.45%, for about 222,000 customers. Rates have also increased across the one-, two-, three- and five-year British Savings Bonds, both Guaranteed Growth and Guaranteed Income versions, replacing the issues that went on sale on 31 July.
The latest move from NS&I may leave savers feeling more encouraged, according to Caitlyn Eastell, personal finance analyst at Moneyfactscompare.
“However, despite the improved odds, they are a game of chance and the 4.35% shouldn’t be mistaken for a headline rate,” she said.
“Premium Bonds can be a fun and unconventional way to win tax-free cash. They may be particularly appealing to savers who have already used their ISA allowance or are likely to breach their personal savings allowance.”
Yet with the cost of living continuing to weigh on household budgets, most savers may not want to leave their returns to chance, especially with the best easy-access savers ISAs paying more than 4.50%, Eastell noted.
“While the latest hike has made their bonds more attractive, savers should still shop around. NS&I’s rates should be compared to the wider market as the highest paying fixed bonds now pay 5%. But savers will also need to pause and assess where the best home for their money is.”
Research has shown that the average saver using Premium Bonds has lost money in real terms over the past decade.