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NS&I Cuts Premium Bonds Prize Fund Rate to 3.6% for August Draw

Experts say shrinking prize allocations will lead savers to consider higher-yield accounts.

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Overview

  • NS&I will lower the annual prize fund rate from 3.8% to 3.6% for the August 2025 draw, marking its second cut this year.
  • The odds of winning remain at 1 in 22,000, but the total prize pot is set to fall from £416.2 million in June to an estimated £396.7 million in August.
  • High-value prizes will be scaled back, with £100,000 awards dropping from 79 to 75 and £50,000 prizes from 159 to 151.
  • Lower-tier payouts will rise, as £25 prizes increase by more than 370,000 to over 2.5 million in the next draw.
  • Personal finance specialists warn that average returns on Premium Bonds may trail top easy-access savings rates and advise holders to reassess their options.