NS&I Announces Premium Bonds Prize Figures, Urges Customers to Review

The UK’s National Savings and Investments (NS&I) has released new figures regarding Premium Bonds, encouraging customers to review their accounts in light of the latest statistics. In 2025, NS&I distributed an impressive total of £4.95 billion in prizes, with over 71 million individual prizes awarded. This draw, which features prizes ranging from £25 to a £1 million jackpot, allows each £1 Bond an equal chance of winning, currently with odds set at 22,000 to one.

The allure of Premium Bonds remains strong, particularly among younger savers. In the past year, there were 470,660 new accounts opened, with 77,177 of these for children under 16. Notably, one child saver’s account resulted in a £1 million jackpot win. For many, the thrill of potentially winning a prize outweighs the reality of the investment’s performance.

Customer Considerations Amid Changing Prize Rates

Sarah Coles, head of personal finance at Hargreaves Lansdown, has highlighted that while Premium Bonds are a popular choice, customers should carefully consider their financial goals. “People are incredibly attached to their Premium Bonds,” Coles stated, “but as we move into 2026, it’s well worth taking stock of whether they’re right for you.” She noted that while winning a prize provides a sense of reward, the reality is that funds in Premium Bonds do not accrue interest, which can lead to a loss of value over time.

With inflation currently at 3.6% for the year ending October 2025, customers face the risk of their savings diminishing in real terms if they do not win prizes. Coles cautions that families investing in Premium Bonds for children may see the real value of their investments erode significantly over the years, especially given the average account balance for new customers in 2025 was £10,674.

Fluctuating Prize Fund Rates and Alternative Options

The prize fund rate for Premium Bonds has seen multiple adjustments in recent months. As of August 2025, the rate stands at 3.6%, a decline from 4% at the start of the year. This decrease follows a peak of 4.65% in September 2023. The Government has set NS&I’s financing target for the current tax year at £12 billion, which may deter further reductions in the prize fund rate in the near future.

For those considering alternatives to Premium Bonds, Coles advises exploring other savings accounts that may offer better returns. “As we head into the new year, it’s worth considering whether you’re still happy with the deal, or whether you’d prefer the certainty of a strong rate in the wider savings market,” she said.

For long-term savings, especially for children, options like Junior ISAs can provide tax-free growth potential and may outperform Premium Bonds in terms of returns over time. Families can contribute up to £9,000 annually into Junior ISAs, ensuring any interest or investment growth remains tax-free.

NS&I maintains on its website that Premium Bonds offer the chance to win tax-free prizes ranging from £25 to £1 million, along with easy access to funds. However, as the financial landscape continues to evolve, customers are encouraged to assess their savings strategies to ensure they are making the most of their investments.