NSI Raises Premium Bonds Rate to 3.80%, Odds to 22,000:1

National Savings and Investments (NSI) announced Thursday that it will raise the Premium Bonds prize fund rate to 3.80 percent starting with the July draw, up from 3.3 percent, while improving the odds of winning any prize to 22,000 to one per pound bond from 23,000 to one. The changes, affecting more than 22 million bondholders across the United Kingdom, reverse reductions made earlier this year.

The adjustments will result in about 322,000 additional prizes in July compared to the current month's draw, NSI said, with the total prize fund increasing by more than 60 million pounds. This includes 12 extra 100,000-pound prizes, 24 more 50,000-pound prizes and 49 additional 25,000-pound prizes. The draw will also feature roughly 2.8 million more 25-pound prizes, alongside increases in 50-pound and 100-pound prizes totaling around 200,000 more such awards. As always, two one-million-pound jackpots will be awarded each month.

The prize fund rate serves as the equivalent of an interest rate for Premium Bonds, a government-backed savings product where participants forgo traditional interest for a chance at tax-free prizes rather than guaranteed returns. NSI, fully backed by HM...