How to Buy Premium Bonds: Complete First-Timer's Guide

Over 24 million people in the UK hold Premium Bonds, making them one of Britain's most popular savings products. If you're ready to join them, this step-by-step guide covers everything you need to know about buying Premium Bonds for the first time — from registration to your first prize check.

Before You Start: What You'll Need

Premium Bonds are sold exclusively by NS&I (National Savings and Investments), the government-backed savings organisation. You cannot buy them through banks, building societies, or investment platforms.

To buy Premium Bonds, you must:

• Be aged 16 or over (you can buy for children under 16 as a parent/guardian)
• Have a UK bank or building society account that can receive BACS payments
• Be a UK resident, or a British/Irish citizen living abroad

You'll need the following information ready:

• Your full name, address, and date of birth
• Your National Insurance number (optional, but speeds up verification)
• UK debit card details for payment
• Your UK bank account details (for prize payments and withdrawals)

Three Ways to Buy Premium Bonds

NS&I offers three methods to purchase Premium Bonds. Online is by far the quickest and most popular, but phone and post options exist if you prefer them.

Option 1: Buy Online (Recommended)

The fastest way to buy Premium Bonds is through the NS&I website at nsandi.com. Here's the process:

Step 1: Register for an NS&I Account

If you've never bought from NS&I before, you'll need to register first. Go to nsandi.com and click "Register" or go directly to the Premium Bonds product page and start the application.

During registration, you'll provide your personal details and NS&I will verify your identity. This usually happens automatically using credit reference agency data. If automatic verification fails, NS&I may ask you to post identity documents (passport, driving licence, utility bill), which adds a few weeks to the process.

Typical registration time: 3-5 working days for most people. You'll receive confirmation by email and post when your account is ready.

Step 2: Log In and Buy Bonds

Once registered, log into your NS&I account and select "Buy Premium Bonds." Enter the amount you want to invest (minimum £25, in whole pounds) and pay by debit card. You'll receive instant confirmation.

Step 3: Set Up Your Prize Preferences

After buying, you'll be asked how you want to receive prizes. Your options are:

• BACS (recommended): Prizes paid directly to your bank account with email notification
• Reinvest: Prizes automatically buy more bonds (up to the £50,000 limit) — these enter the very next draw
• Warrant (cheque): Posted to your address — NS&I discourages this as cheques can get lost or go uncashed

Option 2: Buy by Phone

Call NS&I on 08085 007 007 (free from UK landlines and mobiles). Lines are open 8am–8pm Monday to Friday, 8am–6pm Saturday and Sunday, except bank holidays.

You'll need your debit card ready for payment. If you're a first-time buyer, the adviser will take your details and set up your account over the phone. Identity verification still applies and may require posted documents.

Note: You cannot buy Premium Bonds for someone else's child by phone — only online or by post.

Option 3: Buy by Post

Download the Premium Bonds application form from nsandi.com/downloads-and-forms or request one by phone. Complete it and post to:

NS&I
Sunderland
SR43 2SB

Include a cheque payable to "NS&I" for your investment amount. Postal applications typically take 2-3 weeks to process. You'll receive confirmation and your holder's number by post once complete.

Understanding Your Numbers: Holder's Number vs NS&I Number

NS&I uses two different reference numbers, and it's important to understand the difference between them:

Holder's Number (for Prize Checking)

Your holder's number links all your Premium Bonds together. It has one of these formats:

• 9 or 10 digits (e.g., 1234567890)
• 8 digits followed by a letter (e.g., 12345678A)

You use your holder's number to:

• Check prizes on NS&I's prize checker or our Prize Checker
• Buy more bonds via bank transfer (as the payment reference)
• Identify your bonds when calling NS&I

Your holder's number is not sensitive — it only allows prize checking and cannot be used to access your account, withdraw money, or change your details. You'll find it on your bond record, purchase confirmations, and prize notifications.

NS&I Number (for Account Login)

Your NS&I number is different. It's an 11-digit number (starting with 11, 21, 31, or 41) that NS&I assigns when you register for their online and phone service. This is your login credential and should be kept securelike a password.

You use your NS&I number to:

• Log into the NS&I website
• Access phone banking services
• Manage your account, change bank details, and withdraw funds

After You Buy: What Happens Next

Eligibility for Prize Draws

Your new bonds won't enter the very next draw. Premium Bonds must be held for one full calendar month before they're eligible. Here's how it works:

The exception is reinvested prizes. If you've set prizes to automatically reinvest, those new bonds enter the very next monthly draw without the one-month wait.

Your First Prize Check

Draw results are released on the first working day of each month, typically by 9am. You can check if you've won using:

• NS&I website or app: Log in to see prizes
• NS&I prize checker: Enter your holder's number (no login required)
• Our Prize Checker: Check all prize values instantly — works even when NS&I's site is down
• Phone: Call 08085 007 007 and use the automated service
• Alexa: "Alexa, have I won Premium Bonds?"

If you've set up BACS payments with email notification (recommended), you'll also receive an email on draw day telling you whether you've won.

Buying More Premium Bonds

Once you're registered, adding more bonds is quick and easy:

Online (Instant)

Log into your NS&I account, click "Buy more bonds," enter the amount, and pay by debit card. Takes about 2 minutes.

Bank Transfer / Standing Order

You can transfer money directly to NS&I to buy more bonds using these details:

Each transfer must be at least £25 and in whole pounds. This is useful for setting up a regular standing order with your bank to buy bonds monthly.

Common First-Time Buyer Mistakes

Avoid these pitfalls when buying Premium Bonds for the first time:

1. Expecting Instant Entry to the Draw

Many first-time buyers are disappointed when their bonds don't win in the first draw after purchase. Remember: bonds need to be held for one full calendar month first.

2. Not Setting Up BACS Payments

Prize cheques (warrants) get lost, moved addresses go unreported, and prizes go unclaimed. Set up BACS and email notifications from day one to ensure you never miss a win.

3. Forgetting Your Holder's Number

Save your holder's number somewhere secure. You'll need it for prize checking and account management. Recovering it requires contacting NS&I with identity verification.

4. Buying Just Before Month End and Expecting Fast Eligibility

If you buy on 30th January, your bonds still won't enter the draw until March (after being held for all of February). The timing within the month doesn't change the eligibility rule.

5. Not Keeping Address Updated

If you move house, update your address with NS&I immediately. Prize notifications and important correspondence go to your registered address. Thousands of prizes go unclaimed because holders have moved without telling NS&I.

Frequently Asked Questions

What to Expect: Realistic Returns

Before buying, it's important to understand what returns to expect. Premium Bonds don't pay guaranteed interest — instead, they enter a monthly prize draw funded by a 3.60% prize fund rate (as of February 2026).

The odds of any single £1 bond winning a prize are 22,000 to 1 per month. This means:

• With £1,000 invested, you might win nothing for months at a time
• With £10,000, you'll typically win 5-6 prizes per year (mostly £25)
• With £50,000 (the maximum), you'll average around 27 prizes per year

Our Premium Bonds Calculator shows your personalised odds based on your exact holding amount, including the median return you can realistically expect.

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Premium Bonds returns are variable and not guaranteed. Information is accurate as of February 2026 but may change. Always check nsandi.com for the latest official terms and conditions. Not affiliated with NS&I.