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Premium Bonds Prize Rate Cut to 3.3% as Odds Lengthen to 23,000-to-1

Advisers say the lower prize rate with longer odds makes Premium Bonds less suited to people seeking steady returns.

Overview

  • NS&I’s April draw paid 5,951,866 tax-free prizes worth about £376.5 million, including two £1 million winners from Hampshire and Isle of Wight and from Surrey.
  • From this month, the prize fund rate is 3.3% and the odds for each £1 bond are 23,000 to 1, which NS&I says aligns returns with its duty to savers and taxpayers.
  • Financial advisers say many savers chasing steady growth may be better off in fixed-rate or high-interest accounts that guarantee returns.
  • Quilter reports first-time winners typically waited around 3.1 years and that 2025 prize winners held about £39,500 on average, showing how large balances boost the chance of a payout.
  • Regional results included a £100,000 win in Lancashire from a bond bought in March 2021, underscoring how wins are unpredictable even for long-held bonds.