Martin Lewis’ MoneySavingExpert.com team has analyzed the value of Premium Bonds following NS&I’s latest reduction in the prize fund rate. Premium Bonds, a savings product, offer a chance to win prizes through a monthly draw instead of a fixed interest rate. Prizes range from £25 to £1 million, with a higher number of smaller prizes compared to larger ones.
NS&I recently lowered the Premium Bonds prize fund rate from 3.6% to 3.3% starting from the April 2026 draw. This adjustment decreases the likelihood of winning a prize, with the odds shifting from 1 in 22,000 to 1 in 23,000 per bond.
According to Martin Lewis’ MSE team, the rate cut makes Premium Bonds less competitive compared to other interest-paying accounts. They highlighted that the majority of savers, even with the maximum £50,000 investment, are unlikely to achieve returns matching the previous rates. Interest-bearing accounts now offer a more stable return, such as a 4.5% easy-access rate providing £45 in annual interest for every £1,000 saved.
MoneySavingExpert.com emphasized that most individuals are expected to receive returns below the prize fund rate and have minimal chances of winning the top £1 million prize. However, they mentioned that investing in Premium Bonds could still be a viable option for those who understand and accept the lower probabilities of winning.