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NS&I Cuts Premium Bonds Prize Rate to 3.3% From April as Odds Worsen and Payouts Fall

Analysts say the change reduces average returns for typical holders, prompting small savers to consider guaranteed‑interest accounts.

Overview

  • NS&I will lower the Premium Bonds prize‑fund rate to 3.30% from 3.60% starting with the April 2026 draw.
  • The odds of a win for each £1 bond number will lengthen from roughly 22,000‑to‑1 to about 23,000‑to‑1.
  • April’s prize pot is expected at about £375 million with close to six million tax‑free prizes, with fewer higher‑value awards and more £25 payouts.
  • Analysts estimate a £10,000 holding’s average annual prizes will drop from around £360 to about £330, and they advise modest holders to weigh interest‑paying accounts as many savers have never won.
  • Government documents set a higher NS&I funding target of roughly £15 billion for the next financial year, with CEO Dax Harkins saying pricing will be designed to meet that goal.