Britons will have a greater chance of winning a Premium Bonds cash prize thanks to a recent announcement from National Savings and Investments (NS&I).
Last month, the Government-backed bank confirmed the prize fund rate attached to Premium Bonds will rise to 3.80 per cent for July 2026's draw.
Unlike traditional savings accounts, the NS&I does not accrue interest over time; bondholders instead are enrolled in a monthly lottery to boost their finances.
Every month, Premium Bonds customers have the opportunity to win cash prizes, with two lucky individuals taking home £1million at each draw.
Have your chances of winning a Premium Bonds prize improved?
|GETTY / NS&I
Other cash prizes of £100,000, £50,000, and £10,000 are up for grabs, as well as smaller amounts of £10, £50, and £100, which allow savers to gain a return.
Earlier today, NS&I confirmed that June 2026's £1million jackpot winners came from Leeds, and Cheshire & West Chester.
According to the financial institution, the odds of Premium Bonds shortening to 22,000 to 1 from 23,000 to 1. The Premium Bonds prize fund rate was reduced in April 2026, along with the odds lengthening.
After this move, it is projected there will be 322,000 extra prizes in next month's draw compared to May and June with the prize pot increasing by over £60million.
Are you a Premium Bonds prize winner? | GETTY/NS&I LATEST DEVELOPMENTS
Premium Bonds are another option for savers | NSIFurthermore, there will be 12 additional £100,000 prizes, 24 more £50,000 prizes, and an extra 49 £25,000 prizes in July 2026.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: "Savers who prefer to keep their pots with NS&I will be delighted to see rates increase, but it is worth noting that the top rates on the market are over four per cent on easy access accounts, with some top fixed accounts paying well over 4.50 per cent.
"However, there is no denying that some savers will forgo higher rates to have their money placed with the brand, as it is 100 per ecnt backed by HM Treasury.
"This move from NS&I comes at a time when there are expectations for interest to stay higher for longer, so it is important that it remains in a somewhat middle ground space to offer a fair rate, but not lead the market outright.
How have Premium Bonds compared to the Ftse 100? | LIGHTYEAR "Genuinely, interest rates on savings accounts have been increasing, so now is an ideal time to check the latest deals on the market and review any old pots.
"The Premium Bond prize rate increasing is a positive signal, and these products are a great option for savers who want the chance to win big, or to even open them as a gift.
"It’s worth pointing out that the prize fund rate is now back to where it was last year, as it was 3.80 per cent in April 2025. It rises and falls to adjust to the net financing targets and, of course, considers wider interest rate moves.
"The main drawback to Premium Bonds is that they don’t pay interest, so your deposit erodes in real terms due to inflation, and winning is all about luck. Premium Bonds do not pay a regular income, so a savings account could be a better choice to provide a regular income from a nest egg."