Premium Bonds: Frequently Asked Questions
Everything you need to know about Premium Bonds—from how the draw works to what happens when someone dies. Can't find your answer? Try our calculator for personalised return estimates.
Draws & Timing
How long do Premium Bonds take to enter the draw?
Premium Bonds must be held for one full calendar month before entering the draw. For example, bonds purchased any time in January will first be eligible for the March draw. Bonds bought through prize reinvestment are eligible from the following month.
What day is the Premium Bonds draw?
The Premium Bonds draw takes place on the first working day of each month (Monday to Friday, excluding bank holidays). This is usually the 1st, but can be as late as the 4th if the month starts on a weekend followed by a bank holiday. Results are typically available by the second working day on the NS&I Prize Checker. Jackpot winners are notified in person by "Agent Million" the day before results go public.
When are Premium Bonds draw results announced?
High-value prize winners (£1,000+) are published at midnight on the last working day of the month, the day before main results. Full results are available from midnight on the first working day of each month via the NS&I Prize Checker app and website. Smaller prizes are paid automatically if you've set up auto-reinvestment or bank payment.
Winning & Odds
How many Premium Bonds do I need to win?
There's no guaranteed amount, but statistics help:
- £1,000: 42% chance of winning at least once per year
- £5,000: 90% chance of winning at least once per year
- £22,000: ~63% chance of winning each month
- £50,000: Still ~10% chance of winning nothing in any given month
What are the odds of winning £1 million on Premium Bonds?
The odds of a single £1 bond winning the jackpot are approximately 1 in 64 billion per month. With the maximum £50,000 holding, your odds improve to about 1 in 1.3 million per month, or roughly 1 in 108,000 per year. Two £1 million prizes are awarded every month.
Why do I never win on Premium Bonds?
With odds of 1 in 22,000 per £1 bond per month, small holdings have a high chance of winning nothing. If you hold £1,000, there's a 58% probability you'll win nothing all year. Holdings under £5,000 experience significant variance. Premium Bonds reward scale—the median return for holdings under £1,250 is zero.
Do older Premium Bonds have better odds?
No. Every £1 bond has exactly the same odds of winning regardless of when it was purchased. This is a common myth. ERNIE (the random number generator) gives each eligible bond an equal 1 in 22,000 chance every month. The age of your bonds makes no difference whatsoever.
Cashing In & Access
How long does it take to cash in Premium Bonds?
Premium Bonds typically take 3 working days to cash in once NS&I receives your request. You can request withdrawals online (fastest), by phone, or by post. The money is paid directly to your nominated bank account. There are no penalties or fees for withdrawing.
Can I cash in specific Premium Bonds?
Yes. While online and phone withdrawals default to "last in, first out" (LIFO)—cashing your newest bonds first—there are ways to cash specific bond numbers online. Alternatively, you can download form NS&I 1078, specify the exact bond numbers, and post it to NS&I.
What is the minimum and maximum for Premium Bonds?
The minimum purchase is £25 and the maximum holding is £50,000 per person. You can hold up to £50,000 in your own name, and parents/guardians can hold up to £50,000 for each child under 16. Prizes that would take you over £50,000 are paid to your bank account instead of being reinvested.
Death & Inheritance
What happens to Premium Bonds when someone dies?
Premium Bonds remain in the monthly draws for 12 months after the holder's death, so they can still win prizes. After 12 months, they must be cashed in. If the total NS&I holdings exceed £5,000, you'll need a Grant of Probate. The executor can cash them in or continue holding for the 12-month period. Bonds cannot be transferred to another person.
Can I inherit Premium Bonds?
You cannot directly inherit or transfer Premium Bonds to your name. When someone dies, their bonds must eventually be cashed in and the proceeds distributed according to the will. However, the bonds continue entering draws for up to 12 months after death, potentially winning prizes for the estate.
Lost & Unclaimed Bonds
How do I find lost or forgotten Premium Bonds?
Use the NS&I tracing service at nsandi.com or call 08085 007 007. You'll need to provide your full name, date of birth, and any previous addresses. There's currently over£88 million in unclaimed Premium Bonds prizes. You can also use the "My Lost Account" service at mylostaccount.org.uk which searches NS&I and other providers.
How do I check for unclaimed Premium Bonds prizes?
Log into your NS&I account online or use the Prize Checker app to see prizes from the last 6 months. For older unclaimed prizes, check the London Gazette Premium Bonds Unclaimed Prizes Supplement. If you've moved house, update your address with NS&I to ensure prize notifications reach you.
Tax & Returns
Do I pay tax on Premium Bonds?
No. All Premium Bonds prizes are 100% tax-free. You don't need to declare them on your tax return, and they don't count towards your Personal Savings Allowance. This makes Premium Bonds particularly attractive for higher-rate (40%) and additional-rate (45%) taxpayers who have used their ISA allowance.
What is the average return on Premium Bonds?
The prize fund rate is 3.6% (as of August 2025), but this is a mean average skewed by rare large prizes. The median return—what typical holders actually receive—is lower:
- £50,000: ~3.25% median return
- £10,000: ~2.75% median return
- Under £1,250: Zero median return (most win nothing)
Are Premium Bonds better than a savings account?
It depends on your tax situation. For basic-rate taxpayers with unused Personal Savings Allowance, savings accounts paying 4-5% typically beat Premium Bonds' 3.6% average. For higher-rate taxpayers who've maxed their ISA, Premium Bonds' tax-free prizes often provide better after-tax returns than taxable savings accounts.
Safety & Security
Are Premium Bonds safe?
Yes. Premium Bonds are backed by HM Treasury, meaning 100% of your capital is guaranteed by the UK government. Unlike bank savings (protected up to £85,000 by FSCS), there's no upper limit on Treasury protection. You cannot lose your original investment, though returns aren't guaranteed.
What happens to Premium Bonds if NS&I goes bust?
NS&I cannot "go bust" in the traditional sense—it's a government agency, not a bank. Premium Bonds are backed by HM Treasury, so your money is guaranteed by the UK government regardless of what happens to NS&I as an organisation. This is arguably safer than FSCS-protected bank accounts.
Buying & Managing
Can I buy Premium Bonds for someone else?
You can buy Premium Bonds for children under 16 (as parent/guardian) or as a gift for any child under 16. You cannot buy them for other adults. To gift to a child, you'll need their details and to nominate a parent/guardian to manage the account until they turn 16. Each child can hold up to £50,000.
How do I buy more Premium Bonds?
Log into your NS&I account at nsandi.com, select "Buy more bonds", and pay by debit card or bank transfer. You can also buy by phone (08085 007 007) or post. The minimum additional purchase is £25, up to your £50,000 limit. Standing orders for regular purchases can be set up for amounts of £25 or more.
Calculate Your Expected Returns
Get personalised odds, median returns, and probability distributions based on your actual holding amount.
Disclaimer: This FAQ is for informational purposes only and does not constitute financial advice. Information is accurate as of January 2025 but Premium Bonds terms, rates, and odds can change. Always check nsandi.com for the latest official information.