Overview

• NS&I reduced the Premium Bonds prize fund rate from 4.0% to 3.8% as of April 2025, maintaining odds of 1 in 22,000 for winning a prize.
• Despite the rate cut, NS&I projects over 5.9 million tax-free prizes worth more than £411 million in the April 2025 draw.
• Financial experts highlight the low likelihood of winning significant prizes, with top prize odds described as 'minuscule.'
• Experts like Charlene Young from AJ Bell recommend savers explore higher-yield alternatives, such as tax-free ISAs or other cash accounts offering rates above 3.8%.
• Premium Bonds remain popular, with over £127.7 billion invested by 24 million holders, but concerns grow over the lack of guaranteed returns.