You don't get a Premium Bond interest rate like you would have with most savings products, instead they have an average rate of return. For every £1 bond, the odds of you winning a prize are 24,000 to one, so pretty slim. This translates to a “prize rate” of 3%.
Despite that, says Coles, people need to remember that the odds of a win are still 24,000-1, “so the average person with average luck will still win nothing”.
Premium bonds offer both novice and experienced investors the security of a government-backed savings account, with the chance to win up to £1million each month.
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.
One in a million
Our Agents Million have the important task of delivering the winning news in person to the two monthly jackpot winners. Since the first Premium Bonds millionaire in 1994, over 400 new millionaires have been paid a visit.
If you want a regular income, Premium Bonds may not be the best option for you - you may be better off looking at different types of investment or savings accounts, including isas. You'll also receive no interest, as the interest accrued on bonds goes towards the prize fund.
Each £1 placed into Premium Bonds has an equal chance of getting a prize, so the more savings you have, the more chance you have of winning. Martin emphasised that Premium Bonds won't pay out much more on average than the interest on easy access or fixed rate savings accounts.
You can choose to have your prizes paid directly to your bank account (or NS&I Direct Saver) or reinvested into more Bonds, giving you even more chances to win. Choose either of these options and we'll let you know by text or email if you win. It's the quicker, easier, safer and greener way to receive your prizes.
Straight to your bank account
If you win, we'll let you know the good news by email or text message. You'll then normally receive your prize money in your bank account by the 7th working day of the month.
While Cash ISAs and Premium Bonds are very low-risk, they are unlikely to offer high returns. If you're happy to take more risk for the possibility of better returns, then a Stocks and Shares ISA might be better for you.
How long does it take to cash in Premium Bonds? According to NS&I, it takes up to three banking days for the money to reach your account, unless you have elected to cash in after the next draw.
A There are all sorts of theories. However there is absolutely no evidence that holding premium bonds in a single block has a better chance of winning.
Are my old Premium Bonds still valid? Yes. As long as you haven't cashed your Bonds in, they're still valid and they're still being entered into our monthly prize draws.
NS&I announced on 27 September 2022 that the Premium Bonds prize fund rate would increase from 1.40% to 2.20%, with the odds changing from 24,500 to 1 to 24,000 to 1. The changes were effective from the October 2022 prize draw and more information can be found here . 3.
Dealing with Premium Bonds after someone's death
NS&I does allow them to be held by the estate for one year after death and during this time they will still be entered into the prize draw each month. Any winnings will be sent by warrant, which is similar to a cheque, to the person entitled to claim the money.
If the deceased's Premium Bonds stay in the draw, which they can for up to 12 months (instead of being repaid), who will receive any prizes won? Once we've been told of the customer's death, any prizes won will be paid by warrant (like a cheque) to the person entitled to the money after we've completed the claim.
You never need to worry about an unclaimed prize. We'll hold on to it until you get in touch with us. And there's no time limit to make your claim. Just log in to view your prize history, or use our prize checker to see if you have any prizes you don't know about yet.
There's no time limit to claims, so you can go back as far as you like. Here's how to get your hands on any unclaimed prizes: If you're registered for NS&I's online and phone service... you can call 08085 007 007 to start your claim. You cannot claim online.
When do savings bonds mature? Savings bonds mature at different times, depending on the series. Series I savings bonds, commonly referred to as "I Bonds," fully mature after 30 years. However, you can redeem them as early as one year after purchase.
You don't get a Premium Bond interest rate like you would have with most savings products, instead they have an average rate of return. For every £1 bond, the odds of you winning a prize are 24,000 to one, so pretty slim. This translates to a “prize rate” of 3%.
“Older Bonds can still win, which is the important thing to stress.” There is an equal chance for older Bonds to win, just as much as those purchased more recently. However, due to the age of Premium Bonds, Agent Million states many original Bonds have been repaid.
Our Premium Bonds give you the chance to win cash prizes from £25 up to £1 million in our monthly prize draw. If you're a lucky winner, you won't have to pay a penny in tax on your prize. If you already hold some of our Savings Certificates, you won't have to pay tax on any returns you earn.
In the most recent draw, NS&I paid out £94,234,500 in tax-free prize money. Almost four times as many people hold Premium Bonds now – ahead of the first draw, there were 6 million Premium Bonds holders; there are now 21.1 million.
Use the NS&I prize checker tool and your holder's number to pull the bond's value online. If you don't have a holder number, use your NS&I number to log in to your online account. Call 08085 007 007 (or +44 1253 832007 if you're outside the UK) for help if you're struggling to find info on your bond.
Series I Savings Bonds
If you want to fend off inflation as well as earn an interest rate, check out Series I bonds. These safe investments are designed to protect your money from losing value due to inflation, since the Treasury adjusts your interest rate every six months to keep pace with rising prices.