Premium Bonds July Winners: Should You Invest Before the Rate Drop?

July’s Premium Bonds Winners – Is Now the Time to Cash Out?

Two lucky Premium Bonds holders from Norwich and Nottingham each won £1 million in July’s NS&I prize draw, while 80 others secured £100,000 prizes. But with the prize fund rate dropping from 3.8% to 3.6% in August, savers are questioning whether they should stay invested or switch to better alternatives.

July 2025 Premium Bonds Winners Breakdown

• Two £1 million jackpot winners

  • Norwich winner: Bond number 224LR913240 (held since June 2014, total holding: £50,000)

  • Nottingham winner: Bond number 083EP714276 (held since October 1997, total holding: £49,100)

• Total prizes: 5,995,712 (worth £417.7 million)

• Most prizes (98.8%) were £100 or less

August’s Rate Cut: What It Means for Savers

From August 2025, NS&I is reducing the Premium Bonds prize fund rate to 3.6%—the lowest in over two years. Key changes include:
✔ Same odds of winning (1 in 22,000)
✔ Two £1m jackpots remain
❌ Fewer high-value prizes (154 fewer £5,000+ prizes)
❌ 348,252 fewer mid-tier prizes (£50–£1,000)
✔ More £25 prizes (+363,889)

Should You Still Invest in Premium Bonds?

With better savings rates available elsewhere, here’s what to consider:

• Pros:

  • Tax-free winnings

  • Chance to win big (even with lower rates)

• Cons:

  • Lower returns than top easy-access savings accounts (some offer 4.5%+)

  • No guaranteed interest—you could win nothing

Final Verdict: Is It Worth Staying?

If you’re happy with a lottery-style savings product, Premium Bonds still offer a fun, secure way to save. But if guaranteed returns matter more, high-interest savings accounts or cash ISAs may be a smarter choice.