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The Premium Bonds prize fund rate is set to increase to 4.65 percent from four percent, the highest level since March 1999.
This means more people will have the chance to win cash prizes each month.
Each month, two lucky Britons have the chance to win £1million in the NS&I Premium Bonds prize draw.
Premium Bonds are backed by the Government, so money held in the accounts is safe. Prizes range from £25 to £1 million and are all tax-free.
On their website, NS&I has shared how Britons can boost their chances of winning.
It states: “Instead of gaining interest, every £1 saved in your Premium Bonds gives you the chance every month to win tax-free prizes.
“The more you save (up to the maximum of £50,000), the more chances of winning you have! Prizes range from £25 to two £1million jackpots every month.”
The change in odds will see an estimated extra £66 million added to the prize fund next month, with a potential prize pot of over £470 million.
NS&I estimates that there will be 5,785,904 prizes up for grabs from September – an increase of more than 269,000 when compared to August 2023.
They added: “The only thing that can increase your chances of winning is holding more Premium Bonds. But holding them in sequence won’t make any difference.”
As well as a better chance of winning money in the prize draw, millions of customers across the country will also see a boost to their savings as NS&I announced upcoming interest rate increases across its variable products.
Interest rates for Income Bonds, Direct Saver, Direct ISA, Junior ISA and Investment Account will be increased from August 18 and the increase to the Premium Bonds prize fund rate will come into effect from the September 2023 prize draw.
NS&I Chief Executive, Dax Harkins, said: “These upcoming increases show that we’re supporting savers up and down the country.
“Premium Bonds are one of the nation’s favourite savings products, so increasing the prize fund rate to its best level since 1999 and improving the odds means that more people will have the chance to win prizes each month.
“These rate increases will help ensure that our savings products remain attractive to customers, whilst ensuring that we continue to balance the needs of savers, taxpayers and the broader financial services sector.”
Each Premium Bonds investment must be at least £25. People can buy them online using their secure online system.
Anyone who wins money on Premium Bonds is usually notified by the Government-backed savings organisation via text, email or post.
