National Savings and Investments (NS&I) announced it is raising the underlying rate for Premium Bonds to 4.35%, effective from the September draw. This marks the highest rate for the savings product in nearly two years and follows a previous increase in May 2026, when the rate rose from 3.3% to 3.8%.
The odds of winning a prize with Premium Bonds are also improving, shifting from 22,000 to 1 to 21,000 to 1. With over 22 million people holding Premium Bonds, they remain a popular savings choice in the United Kingdom.
For the September draw, it is estimated that there will be over 308,000 additional prizes compared to the August draw, with the total prize fund increasing by approximately £63 million to nearly £500 million. The number of higher-tier prizes is also set to increase, with 12 additional £100,000 prizes, 27 more £50,000 prizes, and an extra 51 £25,000 prizes. In total, more than 2.3 million £100 prizes and 6.5 million prizes of all values are expected.
NS&I is also increasing interest rates for its Direct Saver and Income Bonds to 3.75%, effective from August 18, 2026. Rates for British Savings Bonds, including one, two, three, and five-year fixed-term Guaranteed Growth Bonds and Guaranteed Income Bonds, have also been improved. New fixed-term issues for maturing British Savings Bonds will offer improved rates, with the one-year bond now paying 4.82% and its monthly income version paying 4.72%.
Andrew Westhead, NS&I retail director, stated that these rate adjustments are intended to reflect current market conditions and help NS&I meet its Net Financing target. While these changes aim to offer competitive rates, some easy-access savings accounts available through independent financial advisors may offer higher returns than the Direct Saver.