NS&I has spoken out to clarify the rules around Premium Bonds. The update comes as some key changes to the scheme are coming in very soon.
The luck-based savings scheme continues to be popular, with each £1 Bond going into a monthly prize draw with the same chance of bagging a prize, of up to £1million.
One advantage of Premium Bonds is you can cash them in at any time, making them a good choice if you want a flexible, easy access home for your savings. You can do this either by phoning up provider NS&I or through your online account.
Guidance on the NS&I website states: “You can cash in all or part of your Bonds at any time.” It can take several days for the money to arrive in your bank account; this depends on when exactly you request the funds.
However, there is one curious rule when it comes to cashing in your Bonds. One option savers have is to cash in specific £1 Bonds.
At first glance, this may seem a needless rule, as each £1 Bond has the same chance of being paired with a prize each month, as long as it’s eligible to go into the prize draw. The odds of winning currently stand at 23,000 to one, although this is changing soon.
NS&I was asked for the reason for the policy. A spokesperson said: “Premium Bonds are one of the UK’s most popular savings products, offering customers the chance to win tax-free prizes each month and the flexibility to manage their savings.
“This includes being able to cash in all or part of their savings when they need. Some customers have an emotional connection to specific Bonds numbers such as ones they were bought as a child or for a special occasion and want to keep hold of them and cash in newer Bonds.
“They can do this by filling in a form to let NS&I know which ones they wish to keep when they withdraw part of their savings.”
Changes to Premium Bonds
The prize fund rate for the scheme is currently 3.3 per cent while the odds of winning are 23,000 to one for each £1 Bond. However, savers will be pleased to know their chances of bagging a prize will be going up soon.
From the July draw, the prize fund rate will move up to 3.8 per cent, while the odds of winning will get a boost, moving to 22,000 to one. This bucks the trend as there were three cuts to the prize rate in 2025, plus another one in January 2026.
The odds of winning stayed at 22,000 to one throughout 2025 and was then reduced to 23,000 to one in January 2026. Many people arrange their accounts so when they win a prize, the funds are automatically used to buy more Bonds.
This increases your chances of winning again. Another perk of doing this is your newly purchased Bonds are eligible to go into next month’s draw.
Otherwise when you purchase new Bonds, you have to wait a full calendar month before they can go into the next prize draw.
