NS&I Premium Bond prize fund explained – what does the rate rise mean?

There’s great news for premium bond holders! The prize fund rate is rising from 1% to 1.4% in June 2022. But what does this actually mean? Are you guaranteed a 1.4% return on your investment? What chance do you have of winning the £1 million jackpot?

Premium Bonds are the UK's biggest savings product, with more than 21 million people saving over £117 billion in them. They are run by National Savings and Investments - known as NS&I - a government-owned bank dedicated to savings.

There are some amazing benefits of investing in premium bonds, but how the prize fund pay-out works can be confusing. My latest video explains how the prize fund differs from normal savings interest, how to work out your odds of winning and when premium bonds should be part of your savings plan.