Many people in the UK hold Premium Bonds, but exactly how the prizes work isn’t always clear. Some expect occasional big wins, while others focus on regular monthly payouts.
This blog post explains the prize tiers available each month—everything from the top‑end million‑pound jackpot to smaller amounts. Every bond enters the same fair draw with no guarantees.
Curious about what you might be able to win if you hold Premium Bonds? Read on to learn more.
What Are Premium Bonds & How Do They Work?
Premium Bonds are a savings product offered by National Savings & Investments (NS&I) and backed by the UK government. Instead of earning interest, each £1 bond enters a monthly prize draw. Bonds can be bought from £25 up to a £50,000 maximum, and can be cashed in at any time. Bonds are chosen randomly by a machine known as ERNIE, and all prizes are tax-free—though there’s no guarantee of any return.
As of June 2025, the odds of any single £1 bond winning in a given month are approximately 1 in 22,000. This figure is based on NS&I’s prize‑fund rate, which stood at 4.00% in July 2025 and will be adjusted to 3.60% for August 2025. However, with no guaranteed return, Premium Bonds should be considered as part of a broader savings plan.
Every bond has the same chance of winning a prize. The total number of prizes changes monthly depending on the prize‑fund rate and total bonds held. However, returns can vary greatly—some savers receive small prizes regularly, while others may go long periods without a win, or simply never win at all.
Are There Bigger Prizes If You Hold More Bonds?
You don’t get larger prizes just by holding more bonds. The prize tiers remain identical. But every extra £1 bond gives you another entry into the draw, increasing your overall chance of winning.
Still, each individual bond’s odds remain fixed at roughly 1 in 22,000 per month.
What Are The Odds Of Winning On Premium Bonds?
As of June 2025, each £1 bond has odds of 22,000 to 1 of winning any prize each month. This applies to everyone, regardless of how much they’ve invested.
Having more bonds just increases the number of entries, not the likelihood that any specific bond will win. The outcome is always based on which bond numbers are picked; this can mean some people get several prizes while others may get none.
The average prize fund rate is 3.60% for the August 2025 draw. To clarify, this shows the average payout for all bondholders as a group, but not the exact return anyone will actually get.
Premium Bonds don’t give regular interest or guaranteed payouts.
Example: Odds of Winning Premium Bonds With £50,000
Holding the maximum (£50,000) gives you 50,000 monthly entries, each with a 1 in 22,000 chance. While this increases your overall likelihood of seeing prizes, it does not guarantee any specific outcome.
Some months you may win multiple small prizes; others, none at all.
Are Premium Bonds Better Than Just Saving?
Premium Bonds work differently from traditional savings accounts. As already mentioned, instead of earning regular interest, you’re entered into a monthly prize draw with the chance to win tax-free prizes. Savings accounts, on the other hand, offer predictable interest—though some of it may be taxable—so you’ll know roughly what to expect over time.
Some people enjoy the added intrigue of Premium Bonds, while others prefer the certainty of interest payments. Many choose to use a mix of both, depending on their goals. Whether one is better than the other really comes down to your personal financial priorities and how you like to manage your money.
Best Time To Buy Premium Bonds – Does It Matter?
When bonds enter the prize draw depends on purchase timing. Bonds must be held for a full calendar month before qualifying.
Buying at the start or end of a month doesn’t affect your bond’s chance in a draw—it just determines which upcoming draw you enter if you choose to do so.
Is Buying Premium Bonds Classed as Gambling?
Premium Bonds aren’t considered a form of gambling. The key difference is that your money stays secure—you won’t lose the amount you’ve put in, and you can withdraw it at any time. Instead of earning interest, you’re entered into a monthly prize draw with the chance to win tax-free prizes.
While there’s no guarantee of a return, there’s also no financial loss, which sets them apart from gambling. Even so, it’s sensible to view Premium Bonds as one part of a wider savings plan, especially if you’re aiming for a balanced financial approach.
Are Premium Bonds Really Worth It In The Long Run?
That depends on your goals. They offer security and a chance of tax-free prizes but not regular income. The prize‑fund rate (average return) is currently 3.60–4.00%, but median returns are often lower. For predictable savings, conventional accounts may be better. Many choose a mix to balance potential rewards and stability. Ensure whatever you choose fits your circumstances and financial plan.
Premium Bonds provide a legitimate, government-backed savings option with a monthly chance to try to win prizes instead of earning interest. Prizes range from £25 to £1 million, with odds of about 1 in 22,000 per bond per month. They work best as part of a diversified savings approach, offering a balance between entertainment and financial security, rather than being relied upon as a guaranteed source of returns.
*All values (Bet Levels, Maximum Wins, etc.) mentioned in relation to this game are subject to change at any time. Game features mentioned may not be available in some jurisdictions.
**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.
Many people in the UK hold Premium Bonds, but exactly how the prizes work isn’t always clear. Some expect occasional big wins, while others focus on regular monthly payouts.
This blog post explains the prize tiers available each month—everything from the top‑end million‑pound jackpot to smaller amounts. Every bond enters the same fair draw with no guarantees.
Curious about what you might be able to win if you hold Premium Bonds? Read on to learn more.
What Are Premium Bonds & How Do They Work?
Premium Bonds are a savings product offered by National Savings & Investments (NS&I) and backed by the UK government. Instead of earning interest, each £1 bond enters a monthly prize draw. Bonds can be bought from £25 up to a £50,000 maximum, and can be cashed in at any time. Bonds are chosen randomly by a machine known as ERNIE, and all prizes are tax-free—though there’s no guarantee of any return.
As of June 2025, the odds of any single £1 bond winning in a given month are approximately 1 in 22,000. This figure is based on NS&I’s prize‑fund rate, which stood at 4.00% in July 2025 and will be adjusted to 3.60% for August 2025. However, with no guaranteed return, Premium Bonds should be considered as part of a broader savings plan.
Every bond has the same chance of winning a prize. The total number of prizes changes monthly depending on the prize‑fund rate and total bonds held. However, returns can vary greatly—some savers receive small prizes regularly, while others may go long periods without a win, or simply never win at all.
Are There Bigger Prizes If You Hold More Bonds?
You don’t get larger prizes just by holding more bonds. The prize tiers remain identical. But every extra £1 bond gives you another entry into the draw, increasing your overall chance of winning.
Still, each individual bond’s odds remain fixed at roughly 1 in 22,000 per month.
What Are The Odds Of Winning On Premium Bonds?
As of June 2025, each £1 bond has odds of 22,000 to 1 of winning any prize each month. This applies to everyone, regardless of how much they’ve invested.
Having more bonds just increases the number of entries, not the likelihood that any specific bond will win. The outcome is always based on which bond numbers are picked; this can mean some people get several prizes while others may get none.
The average prize fund rate is 3.60% for the August 2025 draw. To clarify, this shows the average payout for all bondholders as a group, but not the exact return anyone will actually get.
Premium Bonds don’t give regular interest or guaranteed payouts.
Example: Odds of Winning Premium Bonds With £50,000
Holding the maximum (£50,000) gives you 50,000 monthly entries, each with a 1 in 22,000 chance. While this increases your overall likelihood of seeing prizes, it does not guarantee any specific outcome.
Some months you may win multiple small prizes; others, none at all.
Are Premium Bonds Better Than Just Saving?
Premium Bonds work differently from traditional savings accounts. As already mentioned, instead of earning regular interest, you’re entered into a monthly prize draw with the chance to win tax-free prizes. Savings accounts, on the other hand, offer predictable interest—though some of it may be taxable—so you’ll know roughly what to expect over time.
Some people enjoy the added intrigue of Premium Bonds, while others prefer the certainty of interest payments. Many choose to use a mix of both, depending on their goals. Whether one is better than the other really comes down to your personal financial priorities and how you like to manage your money.
Best Time To Buy Premium Bonds – Does It Matter?
When bonds enter the prize draw depends on purchase timing. Bonds must be held for a full calendar month before qualifying.
Buying at the start or end of a month doesn’t affect your bond’s chance in a draw—it just determines which upcoming draw you enter if you choose to do so.
Is Buying Premium Bonds Classed as Gambling?
Premium Bonds aren’t considered a form of gambling. The key difference is that your money stays secure—you won’t lose the amount you’ve put in, and you can withdraw it at any time. Instead of earning interest, you’re entered into a monthly prize draw with the chance to win tax-free prizes.
While there’s no guarantee of a return, there’s also no financial loss, which sets them apart from gambling. Even so, it’s sensible to view Premium Bonds as one part of a wider savings plan, especially if you’re aiming for a balanced financial approach.
Are Premium Bonds Really Worth It In The Long Run?
That depends on your goals. They offer security and a chance of tax-free prizes but not regular income. The prize‑fund rate (average return) is currently 3.60–4.00%, but median returns are often lower. For predictable savings, conventional accounts may be better. Many choose a mix to balance potential rewards and stability. Ensure whatever you choose fits your circumstances and financial plan.
Premium Bonds provide a legitimate, government-backed savings option with a monthly chance to try to win prizes instead of earning interest. Prizes range from £25 to £1 million, with odds of about 1 in 22,000 per bond per month. They work best as part of a diversified savings approach, offering a balance between entertainment and financial security, rather than being relied upon as a guaranteed source of returns.
*All values (Bet Levels, Maximum Wins, etc.) mentioned in relation to this game are subject to change at any time. Game features mentioned may not be available in some jurisdictions.
**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.
