NS&I issues update on cut to Premium Bonds prize fund rate

For those who are bond holders, you may have noticed the rate dropped from 4% to 3.8% for April’s draw – the change was originally announced earlier this year.

This came after the Premium Bonds rate was last reduced in January 2025, down from 4.15% to 4%.

However, NS&I previously said the odds of winning will remain the same at 22,000 to one.

What is a Premium Bond?

The changes meant that, for example, the estimated number of £100,000 prizes decreased from 82 in February to an estimated 78 this month.

The number of £50,000 prizes has fallen from 164 in February to an estimated 157 in April, while the number of £25,000 prizes has been reduced from 328 to around 313 over the same period.

Meanwhile, the number of £10,000 prizes has fallen from 820 in February to an estimated 781 in this month’s draw.

But the good news is, there were more chances to win a £25 prize in April, with the number increasing from 1,807,915 in February to an estimated 2,170,903.

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Plus, the number of £1 million prizes up for grabs has remained the same, at two.

Why has NS&I cut April's Premium Bonds rate?

In a statement published by The Mirror, NS&I explained why the change was made to the Premium Bonds prize rate in April.

An NS&I spokesperson shared: "We regularly review our products to ensure they reflect current market conditions. In response to changes in the savings market, NS&I announced in February it would be lowering the prize fund rates on Premium Bonds to 3.80% for the April draw.

"The changes help ensure we continue to balance the interests of savers, taxpayers and the stability of the broader financial services sector. Even with the change, more than 5.9 million prizes worth over £412million were paid out in this month’s prize draw."

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An NS&I spokesperson also told Newsquest: "NS&I reviews the interest rates on all of its products regularly and makes changes when they are appropriate, to ensure that it balances the interests of savers, taxpayers and the broader financial services sector.”

Premium Bonds prize checker - how to check if you have won

You can check your account via the NS&I website.

Prize draws are conducted every month and prizes from £25 up to £1,000,000 are given away.

Recommended reading:

• Millions of Premium Bonds holders warned ahead of looming change

• Martin Lewis calls out 'complete urban myth' around NS&I Premium Bonds

• April Premium Bond winners have been announced - have you won £1 million?

To find out if you have ever won a Premium Bonds prize, you will need to dig out your holder's information and head over to the prize checker.

You will need your holder’s number which you can find on your bond record, or in the app.

You can also use your NS&I number which you should be able to find on any communication about your bonds.