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.
Other requirements are that the investment is greater than the minimum limit and in whole pounds, and uses a UK bank account which is in the purchaser's name. NS&I states that if a transfer takes a person over the £50,000 limit, then the transfer will be automatically refunded in full to the bank account.
We pay out two £1 million jackpots each month.
And if you have the maximum £50,000 in bonds, your chances increase to one in 96,839. Each £1 bond has an equal chance of winning. So to boost your chances, the more you buy, the more your chances improve in the monthly prize draw.
Maximum amount you can hold: £50,000. Age limit: Over 16 to buy them; under that age they may be held in the name of under-16s by parents or guardians.
If you want instant access to your cash, have £50,000 to invest, and especially if you pay higher rates of tax they are good value, returning on average around 2pc a year tax-free. But it is a close-run thing as market rates from banks and building societies are rising rapidly. Premium Bonds work like this.
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.
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.
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.
Premium Bonds prize winners are notified when they win a prize, but sometimes people move or change their contact details without letting NS&I know - this can lead to unclaimed prizes if they have opted to receive their prize by cheque.
Customers will need their Premium Bonds holder's number to use the website and their NS&I number or holder's number to check via the prize checker app. At the same time, they can check for any unclaimed prizes owed to them.
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.
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.
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.
There's no investment risk: Because Premium Bonds are government-backed there is no chance of losing your money. This used to be more of a selling point, but the Financial Services Compensation Scheme (FSCS) currently protect all UK savings accounts up to £85,000 per person, per institution the savings are held with.
Yes. But you'll need a UK bank or building society account (or an NS&I Direct Saver or Investment Account) that can receive BACS transfers. We add your interest without deducting any tax. However, the interest is taxable so it will count towards your Personal Savings Allowance in the tax year that your Bond matures.
Premium Bonds are not an investment but are a form of gambling. They were introduced in 1956 for the Government to raise funds for public spending, so Premium Bond holders are lending their money to the Government in the hope they will win a prize, which is payable tax free.
Once you've got more than a few hundred pounds in Premium Bond, your chance of becoming a millionaire is much higher with premium bonds than the National Lottery. Plus you'll keep the money you deposit, unlike buying a lottery ticket. If you prefer certainty, a savings account is always the safest bet.
You can have prizes paid straight 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.
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.
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.
If you invest in the bond for at least 10 years, your growth on the entire investment, including additional contributions, will be tax paid, and withdrawals after the 10th anniversary will be free of any personal tax in your hands - subject to the rules around the 125% opportunity.
Call the NS&I at 08085 007 007 if you're unsure what to do. The NS&I will answer questions for free over the phone. Give them a ring any day from 7am to 10pm and they'll help answer any questions you have regarding old bonds—they won't be able to relay personal info over the phone, though.
The question for many people is if Prize Bonds make a good investment. In pure investment terms, the answer must be a resounding no. If you are looking for returns on your money, prize bonds are a pretty lousy investment.