The National Savings and Investments (NS&I) has announced a major upcoming change to its Premium Bond interest rate.

NS&I already slashed its prize fund once this year, going from 4% to 3.8% in April, and is now now set to reduce by a further 0.2% to 3.6% from August.

Despite the reduction in interest rate, NS&I has confirmed that odds of winning remain at 22,000 to 1 for each £1 Premium Bond held. This reduction in the prize fund rate means that the same amount of people will win, but there will be fewer large prizes.

As an example, the estimated number of £100,000 prizes will decrease from 79 in June to an estimated 75 in August. The number of £50,000 prizes will fall from 159 to 151, while the number of £25,000 prizes will reduce from 317 to around 302 over the same period.

Following in a similar pattern, the number of £10,000 prizes will fall from 792 in June to an estimated 752 in August, however the number of £1 million prizes up for grabs will remain the same, at two.

There will be a higher chance of winning a £25 prize, with the number increasing from 2,197,831 in June to an estimated 2,569,568 in August.

The total value of the prize pot will reduce from £416,221,075 in June to an estimated £396,738,700 in August. The number of prizes will remain fairly similar, at 5,974,465 in June and an estimated 6,011,195 in August.