NS&I will raise the Premium Bonds prize fund rate to 3.80% from July, giving more than 22 million holders a better chance of winning after last month’s cut to 3.3% from 3.6%. The odds will improve from 23,000 to one to 22,000 to one, and NS&I says the July draw will include 322,000 more prizes than this month’s draw.

The prize pot will rise by more than £60 million, with 12 extra £100,000 prizes, 24 more £50,000 prizes and 49 additional £25,000 prizes. There will also be around 200,000 more £100 winners, taking the total number of £50 and £100 prizes to more than 1.9 million, while the number of £25 prizes is expected to reach 2.8 million, half a million more than this month.

The move comes as NS&I also raises rates across four other variable savings products from today. Direct Saver goes from 3.05% to 3.45%, Income Bonds from 3.01% to 3.40%, Direct ISA to 3.80% and Junior ISA to 3.70%, as the state-backed savings provider looks to keep pace with the wider market.

Andrew Westhead said NS&I regularly reviews its products to make sure they reflect current market conditions, and that it was pleased to improve rates across five variable savings accounts today. He said the changes reflect moves in the wider savings market and help NS&I meet its net financing target.

Premium Bonds remain the odd corner of the savings market: the prize fund rate is the nearest thing to an interest rate, but it is not guaranteed, and the appeal lies as much in the monthly draw as in the return. The bonds are backed by HM Treasury and all prizes are tax-free, with savers able to withdraw at any time.

Westhead said the July changes mean “even more chances to win” for the 22 million Premium Bonds holders. That is the clear attraction here. At a time when the average one-year fixed savings rate stands at 4.16%, according to Moneyfacts, NS&I is offering something different: lower certainty, but more prizes, better odds and the security of a state-backed account.