NS&I boosts Premium Bonds rate and odds for September

National Savings and Investments, the government-backed savings bank, has announced a significant boost to its flagship Premium Bonds product, raising the prize fund rate and improving the odds of winning for the more than 22 million people who hold them. From the September 2026 draw, the prize fund rate will increase from 3.80% to 4.35%, and the odds of winning a prize will shorten to 21,000 to 1 from the current 22,000 to 1.

The changes, announced on August 18, 2026, are designed to help NSI meet its net financing target for the financial year. The treasury-backed bank is also raising interest rates on several other savings products with immediate effect. The variable rate on its Direct Saver account is increasing to 3.75% gross AER, while the rate on Income Bonds rises to 3.69% gross (3.75% AER). Furthermore, NSI has raised the rates on its fixed-term British Savings Bonds, including one, two, three, and five-year Guaranteed Growth Bonds and Guaranteed Income Bonds.

NSI's retail director, Andrew Westhead, stated the moves were necessary to ensure the institution reflects current market conditions and meets its net financing target. This marks the second time this year NSI has...