- See more This is Money on Google - save us as a Preferred Source
National Savings and Investments has boosted the underlying rate on Premium Bonds to 4.35 per cent from the next draw, the highest rate for nearly two years.
The odds of a bond winning a prize are also shortening to 21,000 to 1 from 22,000 to 1. It comes just months after NS&I boosted the rate from 3.3 per cent to 3.8 per cent.
More than 22million people hold Premium Bonds and they are one of Britain's most popular savings products.
We previously reported on how far below financing targets the Treasury-backed bank is for the current financial year.
Compared to the August 2026 draw, it is estimated that there will be over 308,000 further prizes in the September draw, with the prize pot increasing by around £63million to nearly £500million.
In September, there are expected to be 12 additional £100,000 prizes, 27 more £50,000 prizes and an extra 51 £25,000 prizes.
There will be more than 2.3million £100 prizes and 6.5million prizes in total.
Better odds: NS&I has boosted the rate on Premium Bonds from the September draw
In the most recent draw, one of the winners of two £1million jackpots was from a holder in Kent, with the bond only bought six months before.
In total, This is Money exclusive research shows 22 winners have scooped the seven-figure prize when holding the winning bond for 100 days or less.
For those putting in money now, the bonds won't qualify until the October draw. Bonds need to be held for a full month before being eligible.
The Premium Bonds rate fell as low as 1 per cent in December 2020 before rising to a record 4.65 per cent in September 2023, where it sat until a cut in April 2024.
The new 4.35 per cent underlying rate is the third highest NS&I has offered on Premium Bonds in recent history.
| Value of prizes | Number and total value of prizes in August 2026 | Number and total value of prizes in September 2026 (estimate) |
|---|---|---|
| £1,000,000 | 2 | 2 |
| £100,000 | 83 | 95 |
| £50,000 | 165 | 192 |
| £25,000 | 331 | 382 |
| £10,000 | 827 | 954 |
| £5,000 | 1,654 | 1,909 |
| £1,000 | 17,347 | 19,892 |
| £500 | 52,041 | 59,676 |
| £100 | 1,931,214 | 2,366,135 |
| £50 | 1,931,214 | 2,366,135 |
| £25 | 2,289,959 | 1,717,659 |
| Total: | 6,224,837 | 6,533,031 |
| £433,663,575 | £497,326,725 |
Boost for other savings rates
NS&I is also boosting the rate on its Direct Saver and Income Bonds to 3.75 per cent.
The rates were last increased in May 2026 and again these are the highest rates on offer from NS&I since 2024.
However, there are a number of easy-access savings accounts in the independent This is Money best buy tables that beat the Direct Saver.
Both new and existing customers with maturing British Savings Bonds will benefit from new fixed-term issues with improved interest rates from today.
Interest rates have been increased for one, two, three and five-year fixed-term Guaranteed Growth Bonds and Guaranteed Income Bonds.
Customers with Bonds maturing from August 18 will automatically get the new rate.
These replace the issues that went on sale on July 31.
The one-year bond now pays 4.82 per cent and the monthly income version pays 4.72 per cent.
On the Growth Bonds, you can also get 4.81 per cent over two years; 4.83 per cent over three and 4.85 per cent on five years.
The Income Bonds offer slightly less than this, but with the option of a monthly interest payment
Andrew Westhead, NS&I retail director, said: 'Not only is NS&I boosting Premium Bonds from September, but from today we are also increasing interest rates for our British Savings Bonds, plus our Direct Saver and Income Bonds.
'This is to ensure we reflect current market conditions and help to meet our Net Financing target.'
Premium Bonds Winners
| Prize | Area | Value of bond |
| £1,000,000 | Kent | £20,000 |
| £1,000,000 | Hampshire And Isle Of Wight | £40,000 |
| £100,000 | Sefton | £25,000 |
| £100,000 | Surrey | £100 |
| £100,000 | Nottinghamshire | £49,998 |
| £100,000 | Hertfordshire | £25 |
| £100,000 | Newcastle Upon Tyne | £50,000 |
| £100,000 | Surrey | £5,000 |