The Premium Bonds prize fund rate and winning chances will be increased by NSandI

In addition to raising interest rates on ten savings accounts starting today, NS&I is raising its Premium Bonds prize fund rate and odds of winning starting in September

Starting in September, NS&I will increase the rate of its Premium Bonds prize fund, increasing the monthly prize pot to almost £500 million.

The prize fund rate will rise from 3.80 percent to 4.35 percent starting with the September draw, according to the government-backed savings bank.

According to NS&I, there will be over 308,000 additional prizes available, including 12 more 100,000 prizes, 27 more 50,000 prizes, and an additional 51 25,000 prizes.

Additionally, the total monthly pot will increase by 63 million to over 497 million, and there will be over 2.3 million 100 prizes.

Watch the entire video here. NS&I is also raising the winning odds from 22,000 to one to 21,000 to one starting in September. In July, the odds were increased as well.

According to Caitlyn Eastell, a personal finance analyst at the data company Moneyfactscompare, "Savers who have already used their ISA allowance or are likely to exceed their personal savings allowance may find premium bonds especially appealing."

"But even with the better odds, it's still a game of chance, and the 4.35 percent shouldn't be taken as a headline rate."

"The best easy access ISAs pay over 4.5 percent and returns could be even higher if savers are willing to lock away their cash," Eastell continued."

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Do the savings accounts make sense?

The Direct Saver and Income Bonds may be more alluring now that their rates have gone up if you enjoy the thought of having your money fully backed by the Treasury.

The Financial Services Compensation Scheme (FSCS) protects funds in the majority of savings accounts in the event that your provider fails, but only up to £120,000.

Even though the Treasury is backing your funds through the Direct Saver and Income Bonds, there are currently other easy-access accounts available that offer more favorable rates.

If you open a current account with Santander Edge or Santander Edge Explorer, you will receive 6% interest on your Santander Edge Saver. The monthly fees for the accounts are three and seventeen, respectively.

The Chase Saver offers an interest rate of 4.5 percent on balances up to £3 million, while the Cahoot Sunny Day Saver offers 5 percent on balances up to £3,000 if you don't want to pay a monthly current account fee.

As of this writing, NS&I's adjustments to its fixed-rate British Savings Bonds have made them the best investments.

The one, two, three, and five-year bonds are all in the top ten for their respective terms, according to BFIA's analysis of Moneyfacts data; however, the market's highest rates are currently paying up to 5%.

"Given that this is the most popular term to fix your savings over, NS&I is clearly hoping to persuade rate-chasers to make a small compromise in order to secure a rate that is 100 percent backed by the Treasury," stated Sarah Coles, head of personal finance at investment platform AJ Bell.

"If the rate is your top priority, you can find a more satisfying home for your money because there are better deals available elsewhere, particularly if you are fixing for a longer period of time.

But being so close to the best offers might be enough to entice some savers to join NS&I."