Checking how much I’ve won on the premium bonds monthly price draw has become one of my favourite things to look forward to! Every month, there’s a chance to bag up to £1 million tax-free. Every single month I get excited about it, wondering if I am the lucky one who owns the winning bond for a million pounds! Though I’ve not won big yet, I’ve won smaller amounts!
Let’s see what prizes are out there and your odds of winning.
How the Premium Bonds Prize Draw Works
The Premium Bonds Prize Draw is a monthly event where a prize fund is distributed among bondholders. Each £1 Bond has odds of winning and the more Bonds you have, the higher your chances are. So if you hold £4000 in bonds, that’s like having 4000 tickets for the draw.
Monthly prize fund distribution
Every month, the total prize fund for Premium Bonds holders comes from a percentage share of the money invested in them. This prize fund rate changes, but it’s always a piece of good news for savers.
With this fund, NS&I can give out tax-free prizes ranging from £25 to an eye-catching £1 million jackpot. It means each pound you’ve put into Premium Bonds has a chance to win something every month.
This system ensures everyone with Premium Bonds has an equal chance to win in the monthly draw. So, whether you’ve got just £25 or the maximum holding of £50,000 allowed, your bonds could earn you something special next results day.
Odds of winning per £1 Bond
So, what are the odds of winning with your £1 Premium Bond, right?
| Odds of Winning per £1 Bond |
|---|
| 1 in 24,500 |
Odds like 1 in 24,500 might seem low, but remember that you get an entry for every £1 you have saved!
Prize Tiers and Amounts
High-value prizes (£1 million jackpot)
Every month, two lucky Premium Bonds holders win a whopping £1 million each. The chance of winning the jackpot for every £1 Bond is 34,500 to 1. Imagine becoming one of the first premium bonds millionaires of the year!
Every month I think about what I would do with all that money!
Medium-value prizes
Besides the £1 million jackpot, Premium Bonds also offer medium-value prizes. These prizes are a step down from the top prize but still exciting. They range from £50 to £100,000.
These prizes can make a big difference in your savings account. Imagine winning £25,000 or even £50,000! Each month, thousands of premium bond holders get lucky and receive these medium-value prizes.
Lower-value prizes
These start at £25. It’s true, the chance of winning big might be slim, but these smaller prizes add up over time. Think of it as a regular dividend income from your savings with National Savings and Investments (NS&I). I like to think of it as interest.
Checking the NS&I website or app and seeing you’ve won something is always a nice surprise! Plus, it’s easy to reinvest winnings and increase your chances for next draw.
Total prize fund payout
How much is up for grabs each month? Well, the total prize fund payout changes. It depends on how many bonds are out there and the interest rates set by HM Treasury.
But we’re not talking small change here. Every month, millions are paid out in prizes.
This huge pot of prize money gets shared among lots of winners. From those lucky £1 million winners to people getting smaller amounts that still add a bit of excitement to their day.
How to Check if You’ve Won
To check if you’ve won, use the NS&I website, Premium Bonds prize checker app or ask Alexa with their “Alexa, have I won?” feature. This makes it quick and easy way to see if your bond numbers have resulted in any prizes.
What Happens if You Win
Payment of prizes
When you win a prize, the payment is made directly to your bank account. If you’ve won £5,000 or less, the money will be transferred straight away. For jackpot winners and those who have won more than £5,000, NS&I will contact you or send a claim form for processing.
Ensure your bank details are up to date to avoid any delay in receiving your prize.
It can take a few days for the money to show in your account due to bank processing times. Once it’s there though, it’s yours! There’s no need to be concerned about any tax deductions as Premium Bonds prizes are entirely tax-free.
If you win the million pound price, you will get a visit from someone in person to confirm!
You can also opt for the price to be put back into your premium bond account rather than into your bank account via bank transfer, this means your savings increase and then you have an even bigger chance to win next time.
You also get a text message when you’ve won!
Unclaimed prizes process
After the payment of prizes, it’s essential to know the unclaimed prizes process. Each month, there are several unclaimed premium bond prizes, adding up to millions in value – even a £1 million jackpot can be left unclaimed.
If you’re concerned about this happening, rest assured that NS&I has a transparent and straightforward approach to managing unclaimed prizes. After each monthly draw, any unclaimed prize money is safeguarded for the rightful winners and remains eligible for claim at any time in the future.
Always insure your contact details are up to date to avoid this. Smaller prize winners will have their bonds automatically put into their accounts, but it’s the larger ones that need verification!
Income Tax and Premium Bond Prizes
No, you do not have to pay UK income tax on NS&I Premium Bond winnings. Winnings from Premium Bonds are tax-free, regardless of the amount. This is one of the benefits of investing in Premium Bonds, as any prizes won are not considered income and are exempt from income tax.
How much I’ve won on the premium bonds
Since opening my premium bonds account in 2022, I’ve won a total of £475 in the monthly prize draw. I also have an account for my son, so it’s a good way for the whole family to save and have a chance of becoming a millionaire!
My recent premium bond winnings:
- March 2022: 2x £25
- June 2022; £25
- July 2022: £25
- November 2022: £25
- March 2023: £25
- September 2023: £100
- August 2024: £25
- November 2024: £100
- January 2025: £100
I have less than £5000 in my premium bonds account. I’ve won a £25 prize 7 times, and £100 twice. This is much more than I’d get from having it in the bank. I always get my prices reinvested into more premium bonds. I check if I’ve won on the ns&i’s online prize checker on my phone, which is the quickest way to check. It also tells you when the next draw will be, which is handy as the draw can change during bank holidays.
Are you going to be one of next month’s lucky premium bonds winners? Maybe you’re one of the lucky premium bond winners who win in the New Year! Good luck in the January draw!
For further information, check out the ns&i website and buy premium bonds now!