What Happened
National Savings and Investments (NS&I) has announced a reduction in the Premium Bonds prize fund rate, effective from the April 2026 draw. The rate will decrease from 3.6% to 3.3%, resulting in an estimated total prize distribution of £375 million, down from £408 million in February. This change will also lead to a decrease in the total number of Premium Bonds prizes, dropping from approximately 6,183,066 to an estimated 5,943,029.
Why It Matters
The adjustment in the prize fund rate and the odds of winning, which will lengthen from 22,000 to one to 23,000 to one, may leave millions of Premium Bondholders feeling disheartened. According to NS&I, this decision reflects broader changes in the savings market and aims to balance the interests of savers, taxpayers, and the financial services sector. Despite the cuts, NS&I anticipates that the April draw will still feature close to six million tax-free prizes.
What’s Next
As the prize fund rate decreases, the number of prizes available in most denominations will also decline. However, the number of £25 prizes will increase from 2,643,007 to an estimated 2,806,003. The number of £1 million prizes will remain unchanged at two per month. This marks the sixth reduction in the prize fund rate since September, indicating a trend that may continue in response to economic conditions.
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