July's top Premium Bonds prize of £1 million - the lucky winner revealed
In a recent announcement, the National Savings and Investments (NS&I) has revealed that the prize fund rate for its Premium Bonds will be reduced from 3.8% to 3.6% starting from August 2025. This adjustment will result in fewer high-value tax-free prizes available, as the overall prize fund shrinks by approximately £20 million compared to June 2025.
Despite this change, the odds of winning remain unchanged at 22,000 to 1 for each £1 bond held. The total number of prizes will remain slightly above 6 million, with more than 80% of the expected 6 million prizes in August being smaller amounts like £25, £50, or £100. This results in a slight dip in the average effective return for savers.
Here's a comparison of the key aspects of the Premium Bonds before and after the August 2025 adjustment:
| Aspect | Current (up to July 2025) | From August 2025 | |---------------------------|---------------------------|----------------------------| | Prize fund rate | 3.8% | 3.6% | | Odds of winning | 22,000 to 1 | 22,000 to 1 (unchanged) | | Total prize fund | ~£416 million (approx.) | ~£396 million (approx.) | | Number of prizes | Slightly fewer than 6 million | Slightly over 6 million | | Prize distribution | More higher-value prizes | More smaller prizes (80% under £100) | | Effective average return | Higher | Slightly lower |
This adjustment reflects the changing savings landscape but retains Premium Bonds' appeal of security (backed by HM Treasury), liquidity, and the excitement of tax-free prize draws.
In July's draw, a total of 5,995,712 prizes were distributed, with over £417 million being awarded to bondholders. Among the winners were residents from Norwich and Nottingham, with one lucky Kent resident walking away with £100,000 from a bond they purchased in April.
Unclaimed Premium Bonds prizes do not have an expiration date. As of 1 July, there are 2,598,139 unclaimed Premium Bonds prizes worth £103,270,175. To check if you have won in July's draw, you can access the online NS&I prize checker tool, use the NS&I app, Amazon's Alexa, or contact NS&I via phone or post.
It's important to note that the method for checking for unclaimed Premium Bonds prizes is the same as checking for July's draw winnings. Premium Bonds winnings will be paid via the method chosen when the account was opened, with 90% either directly deposited into a bank account or reinvested.
For more information on how to check for Premium Bonds, you can refer to a separate article or visit the NS&I website. The total value of prizes in July's draw was £417,701,175, and a table showing the number of prizes given out organized by their value can be found on the NS&I website.
[1] NS&I. (1 July). Premium Bonds changes: What you need to know. Retrieved from
- In the changing landscape of personal-finance, the lowered prize fund rate for NS&I's Premium Bonds, despite remaining at 22,000 to 1 odds, could impact the average effective return for savers, as the shift in prize distribution will result in more smaller prizes.
- Those interested in investments could consider NS&I's Premium Bonds, which offer security through HM Treasury, liquidity, and the excitement of tax-free prize draws, with the potential to add bonds to their personal-finance portfolio.
