NS&I Premium Bonds are a unique investment option that allows you to win tax-free prizes while earning interest on your savings.
The minimum investment required to start is £25, and you can invest up to £50,000 in a single Premium Bond account.
You can purchase Premium Bonds online, by phone, or by post, and it's essential to keep your account details up to date to ensure you receive your prizes.
The current prize fund rate is 1.30%, which means you can earn interest on your investment while also entering the prize draws.
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Understanding Premium Bonds
You can buy Premium Bonds from the age of 16, and if you're a parent or guardian, you can even invest on behalf of your child or grandchild under 16.
Investing in Premium Bonds is relatively affordable, with a minimum investment of £25 and a maximum of £50,000.
Anyone aged 16 or over can buy Premium Bonds, making it accessible to a wide range of people.
You can invest in Premium Bonds from £25 up to £50,000 in total, giving you flexibility in how much you choose to invest.
Premium Bonds don't pay interest, but they do offer a chance to win tax-free prizes in a monthly prize draw.
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Managing Your Bonds
You can write to NS&I to get old Premium Bonds added to your online account, which is a convenient way to keep track of your investments.
If you've lost your Premium Bond numbers, you can log in to your online account to print off a list of all your Bond numbers. This can be a lifesaver if you're trying to keep your finances organized.
Contacting NS&I is another option, and they'll post you a Bond record with all your Bond numbers listed.
Are My Bonds Still Valid?
You can rest assured that your Premium Bonds are still valid even if you haven't cashed them in. As long as you haven't cashed them in, they're still being entered into the monthly prize draws.
If you've misplaced or forgotten about your old Bonds, you can still get them added to your online account. You can write to the Premium Bonds team to get them added.
You can even invest on behalf of a child or grandchild under 16, and their Bonds will still be valid and entered into the prize draws.
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Can I See My Bond Numbers?
You can log in to see and print off a list of all your Bond numbers. If you're having trouble logging in, you can contact us and we'll help you out.
To access your Bond numbers online, simply log in to your account. You'll be able to view and print off a list of all your Bond numbers.
If you prefer a physical copy, you can contact us and we'll post you a Bond record.
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Prize Draw and Unclaimed Prizes
More than two million prizes are paid out every month to lucky Bond holders whose numbers are generated completely at random.
You get a unique Bond number for every £1 you invest, and every number has a separate and equal chance each month of winning a prize.
Prizes range from £25 to £1 million and are all tax-free.
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The Prize Draw
The Prize Draw is a key part of the Premium Bonds experience, and it's completely random.
More than two million prizes are paid out every month to lucky Bond holders.
You get a unique Bond number for every £1 you invest, and every number has a separate and equal chance each month of winning a prize.
Prizes range from £25 to £1 million and are all tax-free.
You can find out more, apply online, or if you have Premium Bonds, find out if you've won at the National Savings and Investment (NS&I) website.
Unclaimed Prizes
More than 2.4 million prizes go unclaimed every month, with over 2 million of these being relatively small prizes.
The largest unclaimed prize is £250, which was issued from June 1957 to July 1974 and can no longer be won.
In total, over £92 million in prizes remains unclaimed, with £11 million of this being £100 prizes alone.
Over 1.8 million £25 prizes remain unclaimed, accounting for over £46 million in unclaimed prizes.
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MSE Warning for 24 Million Holders
Martin Lewis' MSE has issued a warning to 24 million NS&I Premium Bonds holders. The team at MSE has raised concerns over the NS&I Premium Bond rate shake-up.
The NS&I Premium Bond prize-fund rate is set to decrease from 4.15 per cent to 4 per cent for the January draw onwards. This change will affect millions of customers.
Most people with typical luck won't actually see a return of 4% even if they've invested the maximum £50,000. This is because the prize-fund rate will fall even further behind other savings options.
Cash ISAs will likely offer better returns for most savers. They suggest considering moving your cash to an interest-paying account.
The odds of scooping a prize remain at 22,000 to 1. The prize fund rate adjustment comes following a prior announcement for the December 2024 draw made in October 2024.
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Bonds Overview
You can buy Premium Bonds from the age of 16, and if you're under 16, a parent, guardian, or grandparent can invest on your behalf.
The minimum investment is £25, and the maximum is £50,000 in total.
Premium Bonds don't pay interest, but they do give you a chance to win tax-free prizes in a monthly draw.
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Frequently Asked Questions
Can you hold Premium Bonds if you live abroad?
Yes, overseas residents can hold and purchase Premium Bonds, but local regulations may apply. Check with your local tax authority for specific guidance on tax implications.
How good is NS&I Premium Bonds?
NS&I Premium Bonds offer a 3.3% prize rate, but actual returns are variable and depend on winning larger prizes. Consider them if you're willing to take a chance for potentially higher rewards.
How do I cash in my Premium Bonds?
To cash in your Premium Bonds, log in online or call us if you're registered, or withdraw money without creating an online profile if you're not. Simply follow the easy steps to access your savings.
How do grandparents buy Premium Bonds for grandchildren?
To buy Premium Bonds for your grandchild, simply apply online or by post, and we'll send you a gift card to pass on to them. The nominated parent or guardian will then be able to manage and cash in the Bonds.
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