- Your money buys £1 Bond units, and every eligible £1 unit has its own Bond number and one entry in each monthly draw.
- You do not receive a fixed rate of interest. Your return depends on whether your Bond numbers win prizes.
- Prizes are free from UK Income Tax and Capital Gains Tax.
- New purchases normally need to be held for one full calendar month before their first draw.
- You can cash in all or part of your holding through NS&I, subject to its current processes and terms.
What are Premium Bonds?
Premium Bonds are a savings product offered by National Savings & Investments (NS&I). You keep the value of the Bonds you buy, while eligible Bond numbers take part in a monthly prize draw. Unlike an ordinary savings account, Premium Bonds do not pay interest directly to every saver.
The attraction is the chance to win a tax-free cash prize. The trade-off is uncertainty: you may win more or less than the prize fund rate suggests, and you may win nothing at all. The amount held also does not grow automatically, so inflation can reduce its spending power over time.
This website is independent of NS&I. It explains published information and provides private, local tools; it does not sell Premium Bonds or manage NS&I accounts.
Who can hold Premium Bonds?
People aged 16 or over can buy Premium Bonds for themselves, subject to NS&I’s current eligibility and payment requirements. NS&I states that an adult buyer needs a UK bank account.
A child under 16 can also hold Premium Bonds. A parent or guardian manages the holding until the child turns 16, including when another person buys Bonds as a gift.
Eligibility and application rules can change. Check NS&I’s current product information before applying, especially if you live outside the UK or are buying for a child.
How much can you invest?
The minimum purchase is £25, and the maximum holding is £50,000 per person. The limit applies to the total value held for that person, not to each purchase. A larger holding gives you more Bond numbers and therefore more chances to win, but it does not guarantee a prize or a particular return.
How Bond Numbers work
Every £1 you hold has a unique Bond number. If you hold £500, you have 500 separate £1 Bond numbers in the draw. Every eligible £1 Bond has the same odds in that draw.
A Bond number is not the same as your Holder’s Number or NS&I number. Our checker is for individual Bond Numbers. It does not ask for your Holder’s Number or NS&I number, and imported files and Bond Numbers are processed locally in your browser rather than uploaded.
When do new Bonds become eligible?
Newly purchased Premium Bonds normally need to be held for one full calendar month before they enter their first prize draw. For example, Bonds bought at any point in November would normally first be eligible for the January draw. Bonds bought automatically by reinvesting a prize are an exception and can enter the next draw.
How ERNIE draws winners
NS&I uses ERNIE, its random-number generator, to produce winning Bond numbers. Each eligible £1 Bond number has the same chance of winning in a given draw. The process does not reward older Bonds, particular regions or number patterns, and no strategy can guarantee a win.
What is the Prize Fund Rate?
The annual prize fund rate is used to calculate the overall amount available for prizes. It is not an interest rate paid to every holder. Your personal return can be above the prize fund rate, below it or zero because prizes are allocated by a random draw. The rate is variable and can change.
What do the prize odds mean?
NS&I publishes monthly odds for each eligible £1 Bond. The odds apply separately to each £1 Bond number and are variable. They do not tell you that a particular holding will win on a fixed schedule. Treat all estimates as probabilities rather than forecasts.
How much can you win?
Premium Bonds prizes currently range from £25 to £1 million. Prize values, the number of prizes, the prize fund rate and the odds are variable, so use the latest Results page for the draw being discussed. Winning is not guaranteed, and the £1 million prize is not a representative outcome.
Are Premium Bonds prizes tax-free?
NS&I states that Premium Bonds prizes are free from UK Income Tax and Capital Gains Tax. That treatment applies to the prizes themselves. It does not turn Premium Bonds into an ISA, and it does not answer every tax or estate question that may apply to an individual.
How to check Premium Bonds results
For an account-level check, use NS&I’s official Prize Checker with the identifier it requests. For individual Bond Numbers, use our local checker to compare Bond Numbers with an official winning-number file. The file and Bond Numbers remain in your browser and are not uploaded. Always confirm a winning result and payment process with NS&I.
How to cash in Premium Bonds
NS&I allows you to cash in all or part of your Premium Bonds through its current online, phone and post routes, without notice or a withdrawal penalty. This website cannot access, change or close your NS&I holding. Never enter a Holder’s Number, NS&I number or account credentials here.
What happens to Premium Bonds after death?
Premium Bonds become part of the holder’s estate and cannot simply be transferred into another person’s name. NS&I says they may remain eligible for prize draws in the deceased holder’s name for up to 12 months after death, unless repaid earlier. This information is general and is not legal or estate-planning advice.
Premium Bonds vs a savings account
Premium Bonds do not credit interest to every saver; eligible £1 Bond numbers have a chance to win tax-free prizes. A savings account pays interest under its stated terms, making the calculation more predictable. Compare access, certainty, rates, tax treatment and inflation rather than looking only at a possible jackpot.
Frequently asked questions
Do Premium Bonds pay interest?
No. NS&I uses a variable annual prize fund rate to fund monthly prize draws instead of paying interest directly to each holder.
What is the maximum Premium Bonds holding?
The maximum holding is £50,000 per person. The minimum purchase is £25.
Can children hold Premium Bonds?
Yes. Premium Bonds can be bought for a child under 16, with a nominated parent or guardian managing them until the child turns 16.
How long before new Premium Bonds enter a draw?
New purchases normally need to be held for one full calendar month before their first draw. Bonds bought through automatic prize reinvestment can be eligible for the next draw.
Does every £1 Bond have the same chance of winning?
Yes. Every eligible £1 Bond has the same odds in a particular monthly draw. More Bonds give you more entries, but do not improve the odds of an individual £1 Bond.
Are Premium Bonds prizes tax-free?
Yes. NS&I states that prizes are free from UK Income Tax and Capital Gains Tax.
Can I cash in Premium Bonds whenever I want?
NS&I says you can cash in all or part of your Bonds without notice or a withdrawal penalty. Check its current process and payment timing before acting.
What happens to Premium Bonds when the holder dies?
They form part of the estate and cannot simply be transferred to another person. NS&I says they can remain in the prize draw for up to 12 months after death, unless repaid sooner.
How can I check whether old Premium Bonds have won?
Use NS&I’s official Prize Checker for an account-level check. If you have individual Bond Numbers, you can compare them locally with official winning-number data using our checker. For missing records, follow NS&I’s tracing and recovery routes.
Ready to check or compare?
Check individual Bond Numbers privately in your browser, review the latest draw, or estimate outcomes using current verified inputs.
Independent of NS&I. Not financial advice. Official results should be confirmed with NS&I.