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What are the odds of winning a Premium Bond prize?

The odds of winning will change from 36,000 to 1, to 24,000 to 1. It is estimated this will create an extra 500,000 Premium Bond prizes to be distributed in the October prize draw.

Premium Bond holders with the maximum amount invested (£30,000) and average luck could win 15 tax-free prizes per year with the new odds.

How the changes affect the Premium Bond prize fund rate

	September 2009	October 2009 (estimate)
Total value of prizes	£33,800,350	£52,471,603
Total number of prizes	1,126,679	1,749,053
Prize fund rate	1.00%	1.50%
Odds of winning a prize	36,000 to 1	24,000 to 1

Why the rate is changing

NS&I reviews return rates on all its savings products monthly. It does this to balance the interests of its savers, the taxpayer and the stability of the wider financial services market.

Earlier in the year, influenced by a historically low Bank of England base rate, NS&I had reduced returns on its prizes. It even scrapped one of its two £1 million jackpots in April 2009. By August, however, NS&I had once more increased returns on several of its accounts.

Peter Cornish, Director of Customer Offer for NS&I, said: "Premium Bonds are hugely popular with our customers and winning prizes frequently is particularly important to them. These changes mean we can increase the frequency of an envelope from ERNIE dropping on their doormat."

Further Information

• Have you won a Premium Bond prize?

• National Savings and Investments

• Apply for Premium Bonds