Savings giant NS&I is chopping the Premium Bonds prize fund rate from August, with fewer chances to win some big pots of money.

The prize fund rate will reduce to 3.60% from the August draw, down from 3.80%.

The odds of winning will remain the same, at 22,000 to one.

The changes mean there will be an estimated 75 prizes of £100,000 in August, down from 79 in June.

The estimated number of £50,000 prizes will reduce to 151 in August, from 159 in June.

Meanwhile the estimated number of £25,000 prizes will fall to 302 in August, from 317 in June.

There will be an estimated 754 prizes at £10,000 in August, down from 792 in June.

The estimated number of £1 million prizes will remain the same, at two.

The number of £25 prizes is set to increase in August, with an estimated 2,569,568 available, up from 2,197,831 in June.

NS&I, which is backed by the Treasury, has a duty to balance the interests of savers, taxpayers, and the broader financial services sector.

Andrew Westhead, NS&I retail director, said the adjustment to the prize fund rate “reflects the changing landscape for savings”.

He added: “The August draw is expected to deliver more than six million tax-free prizes worth over £396 million.”

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “The writing has been on the wall for Premium Bond prizes ever since the Bank of England cut interest rates in May.

“The most competitive easy access savings rates have held up impressively, but the market has been inching gradually south.”

She added: “The question for many savers is whether this will be the last time the rate falls.

“On the one hand, NS&I’s fundraising target has risen slightly to £12 billion.

“On the other, at a time when the Bank of England is expected to make two more rate cuts before the end of the year, there’s a decent chance that savings rates will continue to gradually edge lower.”

Laura Suter, director of personal finance at AJ Bell, said: “The top easy access account on the market pays 5% interest.”

She added: “Savers with money in Premium Bonds should really think about whether the account is right for them.

“Considering many Premium Bond holders will never win a prize and the average expected return is lower than the top easy access account, savers could well be better off with a guaranteed return elsewhere.”