Overview
- NS&I said Thursday it will raise the Premium Bonds prize fund rate to 3.80% for the July 2026 draw, with odds per £1 bond moving to 22,000 to 1 from 23,000 to 1.
- The July draw is set to create an estimated 322,000 extra prizes and add more than £60 million to the pot, including more £100,000, £50,000 and £25,000 awards, while the two £1 million jackpots stay the same.
- Alongside the Premium Bonds update, NS&I increased variable rates from Thursday on key accounts including Direct Saver at 3.45%, Income Bonds at 3.40% gross (3.45% AER), Direct ISA at 3.80% and Junior ISA at 3.70%.
- Moneyfacts and AJ Bell said the uplift still trails top easy‑access deals above 4% and some fixed accounts above 4.5%, so savers may get better guaranteed returns by shopping around.
- Premium Bonds pay tax‑free prizes rather than interest and are fully backed by HM Treasury, giving 22 million holders secure capital but no guaranteed income because returns depend on wins.