New prize fund rate for August Premium Bonds draw
- Premium Bonds prize fund rate will be 3.60% from the August 2025 draw
- 6 million tax-free prizes expected to be paid out in August 2025
- Odds remain at 22,000 to 1 for each £1 Premium Bond held
NS&I is reducing the Premium Bonds prize fund rate to 3.60% with effect from the August 2025 draw, down from 3.80%. There is no change to the odds, which remain at 22,000 to 1.
The Premium Bonds prize fund rate was last changed in April 2025.
Andrew Westhead, NS&I Retail Director, said: “This adjustment to the Premium Bonds prize fund rate – the first in four months – reflects the changing landscape for savings.
“Premium Bonds maintain their unique appeal by offering complete security backed by HM Treasury, the flexibility to withdraw easily, and the excitement of potentially winning a tax-free prize each month. The August draw is expected to deliver more than 6 million tax-free prizes worth over £396 million.
“By making this adjustment now, we’re able to continue to balance the interests of savers, taxpayers and the stability of the broader financial services sector.”
| Current prize fund rate (from April 2025) | Current odds (from December 2024) | New prize fund rate (from August 2025) | Odds from August 2025 (no change) |
| 3.80% tax-free | 22,000 to 1 | 3.60% tax-free | 22,000 to 1 |
Since November 1956, Premium Bonds have offered savers an accessible way to save, with the chance to win tax-free prizes. Instead of paying interest, there’s an annual prize fund rate that funds the monthly draw for tax-free prizes. Each £1 Bond purchased is entered into a monthly prize draw, where prizes range from £25 to £1 million, making it an engaging way to save.
Individuals can hold up to £50,000 in Premium Bonds, including those aged under 16. Premium Bonds offer the security of being 100% backed by HM Treasury, alongside the excitement of potentially winning tax-free prizes. Nine out of ten prizes are paid directly into the holder’s nominated bank account or automatically reinvested into Premium Bonds to go into the next draw. New Premium Bonds purchases need to be held for one full calendar month before being entered into the monthly prize draw.
Number and value of Premium Bonds prizes
| Value of prizes | Number and total value of prizes in June 2025 | Number and total value of prizes in August 2025 (estimate) |
| £1,000,000 | 2 | 2 |
| £100,000 | 79 | 75 |
| £50,000 | 159 | 151 |
| £25,000 | 317 | 302 |
| £10,000 | 792 | 754 |
| £5,000 | 1,585 | 1,507 |
| £1,000 | 16,649 | 15,869 |
| £500 | 49,947 | 47,607 |
| £100 | 1,853,552 | 1,687,680 |
| £50 | 1,853,552 | 1,687,680 |
| £25 | 2,197,831 | 2,569,568 |
| Total: | 5,974,465 £416,221,075 | 6,011,195 £396,738,700 |
Notes to Editors
- Details of previous prize fund rates for Premium Bonds can be found here .
- All Premium Bonds prizes are free of UK Income Tax and Capital Gains Tax.
- NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to over 24 million customers. All products offer 100% capital security as NS&I is backed by HM Treasury.
- Net Financing is the measure of the net change of NS&I funds, meaning total inflows from deposits, retention of maturing monies and capitalised accrued interest, less the total outflows from withdrawals and interest or Premium Bonds prize draw payments. A positive Net Financing figure represents a positive contribution to government financing.
- The Net Financing target for 2025-26 is £12 billion (+/- £4 billion).
- NS&I photography and logos are available to download here .