Premium Bonds Update: Prize Rate Rise and Bereavement Claims Plan
In a significant development for savers, National Savings and Investments (NS&I) has announced that the Premium Bonds prize fund rate will increase from the July 2026 draw. This move, which also improves the odds of winning for each £1 bond, marks a sharp U-turn from the Treasury-backed bank’s previous decision to cut the rate in April, which had led to a flood of money leaving Premium Bonds. The new rate and odds are expected to restore confidence among the millions of UK savers who view Premium Bonds as a safe and potentially rewarding investment.
While the rate increase is welcome news, NS&I has also been in the spotlight for a more serious issue. On 26 March 2026, the Minister for Pensions, Torsten Bell MP, informed the House of Commons that NS&I had identified a problem where the estates of deceased customers were not always repaid money from all of their accounts following a bereavement claim. In response, NS&I has published a comprehensive delivery plan to address these issues, outlining key measures to support affected estates. The plan aims to ensure that all outstanding funds are promptly and correctly distributed to the rightful beneficiaries.
For those holding Premium Bonds, it’s important to note that while the prize rate is set to rise, bonds can remain in the monthly draw for up to a year after the bondholder’s death. This provides a period during which the estate may still benefit from potential prizes. However, the recent bereavement claims issue highlights the need for clear communication and efficient processes when dealing with the financial affairs of a deceased loved one. NS&I’s commitment to resolving these matters is a positive step, but affected families are advised to stay informed and proactive in their claims.
Looking ahead, the combination of a higher prize rate and improved odds is likely to attract both new and returning investors to Premium Bonds. Yet, the ongoing scrutiny of NS&I’s handling of bereavement claims serves as a reminder that even the most trusted institutions can face challenges. As the July 2026 draw approaches, savers will be watching closely to see if NS&I delivers on its promises, both in terms of returns and in restoring trust through transparent and compassionate customer service.
Shimanta Das 
