How much do you really win on premium bonds? Are premium bonds worth it?
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More than 5 years ago now I was fortunate to win a nice sum of money. I promptly decided to save as much of it as possible - ready for a house purchase. My first question was how much do you win on premium bonds - are they really worth it?
I figured the best way to find this out was to put my money where my mouth was and see how it went. This post is kept up to date monthly, so scroll down near the end if you’d like to see what I’ve won in the past year, up to date for August 2025.
Fast forward and here I am, having bought my own home finally in late 2022 and still holding a nice sum of money in premium bonds. I keep my emergency fund here, and my upcoming tax instalments too, as I know I’ll be able to access the money within just a few days, and it is safe as houses in premium bonds too, as NS&I are effectively the UK Government’s savings account.
We also have smaller holdings for my husband and two daughters. Any time I mention premium bonds I ALWAYS get a ton of comments letting me know how much money I’d make in the S&P500 / ETFs, etc. I just want to say that I do know. I do also invest. My premium bonds doesn't contain my entire life savings and I’m not looking for investment advice on this post, nor am I offering it either as I am not a qualified financial advisor!
Had I invested £50,000 back when I first won a lump sum, rather than placing it in premium bonds, I’d have only made a small amount of additional money, due to the huge variations in the stock market in the last two years in particular.
This post is not designed to be financial advice, and is simply a post for me to share my own winnings, some proof that I hold premium bonds, and a little bit of a Q&A for the most commonly asked questions that people have about premium bonds.
The results that you see in this post are based on my own luck, and the winnings that myself, my husband and my two daughters have had across our NS&I premium bond accounts.
How much do you really win on premium bonds? Based on my holdings of £50,000.
I bought my holdings back in May 2017, as you can see. The first draw that they were included in was July 2017.
I was really surprised that my bank allowed a £50,000 debit card transaction to go through but that’s for another day…!
My year 1 premium bond winnings were: £50, £125, £50, £75, £75, £100, £50, £0, £75, £50, £0, £25. A total of £675 won at a time when the prize fund was 1.40%, so I won only marginally less than expected.
As you can see the first 6 months were much more profitable than the 2nd!
Was I lucky with this first year of bonds?
I tried out a probability calculator and these were the results:
You are lucky - only 9.16% of people who have put £50000 in premium bonds over 6 months win more than £450.
So there you have it. Pretty lucky. Not surprising to me as I've had a lucky few years, financially at least.
Interestingly I look after 12 months and it said this:
You are lucky - only 35.7% of people who have put £50000 in premium bonds over 1 year win more than £675. So no longer am I really much above the average luck!
Are newer premium bonds luckier?
This is a question that I’ve been asked time and time again, and thanks to the purchase of my house sale I’ll be able to update more on this topic in 2024 hopefully!
What I can say is that I have tested moving some money out, and back in, to get newer premium bond numbers. I have also experimented with removing a very small amount of money, and then allowing the £25, £50 etc wins to be reinvested, and I’ve been surprised by the results.
For me personally, and this is not going to be any sort of guarantee, some of my most prolific batches of premium bonds are the newer ones. I’ve also had several £25 wins from re-invested premium bond numbers in just a short amount of time. Given that the odds of each £1 winning are 24,000 to 1 this feels quite surprising!
Of course I have had to miss a months draw when moving money around, which is a shame - what if that was the million pound winner? I guess I’ll never know!
How do you cash in premium bonds?
You can easily cash in your premium bonds online, or by phone. Obviously the benefits of online are that you can do this when convenient, rather than being bound to specific telephone staffing hours.
How long does it take to cash in premium bonds?
When I cashed in some bonds in 2022 for a house purchase I did so online. The money arrived in three working days, which was faster than the stated time for this.
I found the process very simple to follow and had no complaints at all.
Are premium bonds tax-free?
Yes! Premium bonds are entered into a monthly prize draw and there is a chance to win tax free prizes worth £25 and upwards. Obviously, the value of my premium bonds will reduce over time with inflation. The face value won't change, but £25 will buy you less as time goes on and inflation increases.
You do not need to list the income that you generate from your premium bonds on your tax return like you would with a savings account. You do not need to pay capital gains tax on premium bond winnings either, though do seek actual tax advice from an expert, and not an occasional personal finance blogger, if you need that!
This is fantastic for me as it is one less thing to faff around with when I'm completing my tax return. I feel like any winnings are a discount on my tax bill - not that they are really of course.
Also, it means I don't have to worry if I do want to indulge myself and spend the winnings on a treat for my family, as I don't need to put the tax by or worry about forgetting!
How much are premium bonds? What is the minimum you can invest in premium bonds?
At the moment the minimum you can invest in premium bonds is £25. The lowest bond prices have been reduced in recent years, and regardless of what you buy each bond is £1 and this is 1 entry into the premium bonds draw each month.
I know some people with £100 who have NEVER won. Then again I know people with £100 who have had a handful of £25 premium bonds prizes, which is really unlikely to happen.
I believe you can also set up a standing order, possibly for a smaller amount, but I'm talking about outright purchasing premium bonds just by logging into the website or giving them a call.
How do you buy premium bonds?
You can buy them online, by phone, by post and if you already have premium bonds you can even use bank transfer or standing order to purchase some more.
Can you buy premium bonds using a credit card?
Nope! So no cash back credit cards can be used sadly! Was worth an attempt at some free cash prizes though hey!
Are premium bonds 100% safe?
Yes! There is no risk to your capital with NS&I premium bonds. As you're not earning guaranteed interest rate you are technically gambling with any market interest rates on savings that you could earn elsewhere.
My results so far show that I would have been better off, financially, to invest my money elsewhere. However, I wanted to keep some of my money safe while having the excitement of winning a monthly prize. This is because it is tax liabilities, and our emergency fund, as well as some money for upcoming home renovations.
What are the odds of winning premium bonds?
Currently, the odds are 24000:1. For each £1 you have invested in premium bonds you have a 24,000 to 1 chance of winning any single prize.
As each £1 premium bond is assigned it’s own number you just never know which one is going to be the lucky one!
When are premium bond winners drawn?
The draw happens a few days before the end of the previous month when it is announced. On the 1st working day of the month the details of the 2 x £1,000,000 premium bond prize winners are announced.
Agent Million will have already visited the lucky winners in person, at home, to let them know about their large win.
You can also see the winners of the larger prizes (£5,000 upwards) on this day. Then on the 2nd working day of the month the rest of the winners are announced.
I love having a look at the high value premium bond winners and seeing if I can spot my county on the list!
What are the maximum premium bonds you can hold?
The maximum premium bonds are currently £50,000 per person. So you and your partner can hold £50,000 each. Then any children can hold the same in premium bonds too.
What happens to wins if you have the maximum holding?
They just go to your bank account, or you can request a cheque.
What are the odds of winning premium bonds with 50,000?
On average, based on probability, you would expect to win around £2,325 for every full year that you held £50,000 of premium bonds.
When I first had £50,000, and tracked it, the rate was 1.40% and I won just under this.
Are premium bonds a good investment?
Ultimately the premium bonds are a lottery. Particularly when you find out about all of the unclaimed prizes over the years!
I am NOT financially qualified, nor would I want to give anyone bad financial advice. I will say that cash ISAs are likely to be a better option than premium bonds, for most people at least.
For me I feel that premium bonds are great for semi easy access money, that you need to keep safe, but there are a number of better rates available from savings accounts now, so this is something that you should look to explore for yourself.
If you have a large amount of money then I would suggest looking into the option of speaking to an independent financial advisor to help you steer your money as best as you can! Always a good time to look at pensions and doing the best you can for future you too if you’re paying an expert!
I feel that around £20,000 is the sweet spot with premium bonds. You should have semi regular wins, but of course ANY single £1 bond could be the one that wins £1,000,000!
It really depends on your own opinion on risk. If you're someone who doesn't like risk then premium bonds are a fun way to have a chance to win money.
Are premium bonds covered by the FSCS?
The NS&I is owned by the Government so savings come with 100% security (although they are not covered by the FSCS).
You can find out more about the Governance of premium bonds, including the regard given to the Financial Conduct Authority rulebook, and more, here.
When is the next premium bonds draw?
Download the NS&I premium bonds prize checker app and you'll always see, at a glance, when the next draw is. Also, you'll get results in the app just after midnight on the second working day of each month!
Can you win more than one prize on premium bonds?
Yes, however, each £1 bond can only have the chance to win one prize per month. They can win time and time again though. £25 = 25 x £1 bonds, and you then have 25 chances to win in each prize draw. Though the odds of that would be astonishing I would imagine!
What have I won in the past year (tracking the wins for 5k of bonds!)
September 2024 - £200 (2 x £100)
October 2024 - £0
November 2024 - £0
December 2024 - £0
January 2025 - £200
February 2025 - £0
March 2025 - £0
April 2025 - £0
May 2025 - £100
June 2025 - £0
July 2025 - £0
August 2025 - £0
Total in 12 months = £500
As of May 2025 the current prize fund rate sits at 3.8%. I'm above this with my current holding.
If there is anything else that you'd like covered in this post please do let me know in the comments or drop me a message over on Instagram or Twitter.
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Hi Katy
I had £100,000 to invest in Sept 2015, so put half in PB's and half in an savings account paying £21 interest each month. Currently am up to January 2027 at £25 a month with my winnings AND within a couple of months of investing the savings account had reduced to £11 a month (I moved that money elsewhere). I seem to win most months but after not winning Apr, May & June this year, have since won £50 92x£25), £125 (£25&£100) & £50 (2x£25)! I enjoy the randomness of it and also the chance that you could win big.
Thanks for the information.
That's good news on your wins, I love the randomness too!
I personally don't do much saving these days, most of my money goes into investments. I only hold the PBs as it is my house deposit, and once I spend that I'll just hold PBs for my emergency fund, upcoming tax payments etc, as it's just not beating inflation is it! x
(I'm not financially qualified which is why I don't share my own investments etc here as I'd hate to encourage someone to effectively gamble with their money!)
A few years back, I held £30,000 of Premium Bonds. which was the maximum you could hold at that time. I bought them in one batch (£30,000 in one go) so they had consecutive numbers. I won at least one price a month, the best being £650 the day before my holiday. Then they started to reduce the prizes and I won hardly anything so cashed them in.
Thanks for sharing! I'll be cashing mine in to buy a house, but may well keep some, just in case!
I was cringing when reading your returns. Then see you needed the money soonish for your house. Makes sense.
S&P500 index returned 28% last year alone. High teens the year before that. And that!
Yes my wife and myself have £50k invested in premium bonds. Never ever
Win more than £75 pounds.
I do a lot of travelling around uk meeting many . Many Many . people. Who over the years have talked. Regarding premium bonds.
??? Not one person as ever received more than £75 pounds . ?? So these £10k
£20k
£50k
£500k
£100.000.00
Between use never heard of anyone winning these prizes??????
I also have never heard of a 'big' winner either...! I've cashed most of mine in now for a house deposit.
Well. I have just come home . My wife as informed me I have won £25 😀😀
Again ?? We are Very lucky .
My wife as the max. I have the max.we have had them
For years. I keep telling her it’s a con,?
I travel all over meeting people in offices. Shops and so on .and discuss the topic . I have never heard of anyone win £5000£10000£20000£50000£1000000 no one
Same old sorry win £25 or £50 max
Never ever heard of anyone win more
Never . Big con
I've also never heard of ANY big winners of more than £100...!
An interesting read, thank you. Some comfort also that my own winnings give a mixed picture which is not unusual: between 2018 and 2022 - 1.5% 2.5% 0.9% 1.00% 0.75%. In 2022 I decided to withdraw one-third of my holding and invest in a building society 2 year fix at 4.4% but changed my mind and bought newer bonds. Another third was withdrawn and then re-invested, hence the low return of 0.75% in 2022. Holding fully eligible for prizes in January 2023 but, alas, nothing this month!
I find on the £0 months I ALWAYS know people who have won £150-£200. Almost like they just give out a bigger cluster that month (I know that's not how it works - just being cynical!)
Nice post. I too have Premium Bonds and other NS&I accounts. Yes, they don't pay out what other savings do but they're tax free and you can only put £20k a year into an ISA (and they had terrible rates until relatively recently).
It's fun too, so I don't understand where the negativity comes from. We're all protected up to £85k with each banking group we save with, but I believe NS&I protects the whole investment in all of their savings accounts (and some allow you to invest £2m). So that's another advantage to saving with them.
But yes, it's hard to get the prize rate. The problem is that it's difficult to win prizes of £500 or above because there are so few of them. But I like that there are as many £100 prizes as £50, that's great for someone like me, who has a chance of winning those prizes based on the odds but little chance of winning more given I don't have the full amount invested.
Martin Lewis' calculator is a good idea but poorly done. Don't get me wrong, I admire the genius of anyone who managed to work out binomial probability but they should have more options there. i.e. on the "How lucky am I" bit, they should have all potential winnings covered - not jump from £5000 to £10000 with nothing in between!
And I'd really appreciate it if they gave the EXACT odds for each prize, not "chances of winning at least this amount". They do that both on MSE and the Premium Bonds calculator. I don't just want to see the % of people who won more than me, I want also to see who won the same amount.
This was an excellent read and I wish you well with everything 🙂
Mark
I'd absolutely love to see more options on the probability calculator too!
Personally I've found ALL the prizes to be a bit too far and few for me at the moment, but such is the nature of luck of course!
I sometimes wonder how long it would take people to spot my update on here if I had a 'big' win on the bonds - probably not long!
First draw for me in November 2022 = nothing, then December I won £550, January 2023 I won £100 and now in February I've won £275, so maybe there's some truth in being more successful with new bonds:)
Oh congratulations, that is wonderful! Wow. What a lovely amount you've had!
Interesting Fact - Just a little aside to your premium bond journey. My son who has a small amount of savings in premium bonds received an extra win of £25 towards the end of the month. I was baffled by this and contacted NS&I. The helpful man on the phone was also unsure how this extra payment came about but after some research it transpired that if somebody wins money and it is found to be fraudulent the money is put back into the pot and is redrawn.
Oh wow, that's so cool! Never heard of this before so thanks for sharing!
When interest rates were crap my accountant said buy PB's. Great advice as we won nearly every month! Over about 4 years we have won nearly £2K. (Tax free).
Well done! Can't beat a bit of (legal) tax free cash!
I'm interested (no pun) in your comment about newer bonds being more lucky. I started with £500 about 25 years ago and within the first couple of years I won 2 or 3 £25 prizes. Then nothing. I topped up 2 years ago to £3000 and won again in the same manner - nothing again since. I'd be keen to hear other people's experience with this.
I've approved your comment in the hope someone else replies.
My daughters have newer bonds (every month a small amount) and they seem to be very lucky, much above the % expected.
There are a few sceptics on here who say they're not sure big wins actually exist. My daughter's first NS&I draw was in September 2022 and up until June 2023, she'd won a total of £900. In today's draw (4/7/23), she won £10,000. It happens!!
That's so wonderful! Congratulations to your daughter!
My wife Andi have 90000 between us and this year we have won 2375
.
Well done!
That's a really poor return in 2023...
I spent most of my bonds on buying a house in late 2022!
I did just win £1,100 in the January draw. So not all bad!
Thank you Katy, I have found this article really interesting, I have worked out with mine that for the last 12 months I have had below average luck, I'm hoping 2024 will be better, I love tracking it monthly though and have a real excitement to check the App on announcement day. You have to be in it to win it, I make sure I use any winnings on something fun for the family.
Congrats on your Jan 2024 winnings that's fab
You really do Kate! Thanks for your lovely comment.
I had below average luck for a long time before the big win in January!
@katykicker, Today I had my first bigger win £1150 which was made up from £1000, £100and 2x £25 - we are putting the money in our holiday fund which is greatly needed.
Just needed to share my excitement. lol