National Savings and Investments (NS&I) holds monthly Premium Bond draws of the year, awarding lucky account holders with prizes of up to £1 million.
According to the NS&I, over one million account holders are also estimated to have earned the smallest monthly win of £25.
If you don’t need immediate access to your money, premium bonds are seen as an efficient way to boost your savings.
So how do Premium Bonds work, and when is the next draw?
How do Premium Bonds work?
Premium Bonds are a way of saving your money while entering into a monthly prize draw, for the chance of winning up to £1 million.
First introduced over 60 years ago in 1956 by Harold Macmillan, millions of people now save through a premium bonds account.
On top of an incentive for saving, the NS&I also uses a random number generator called Ernie (Electronic Random Number Indicator Equipment) to dish out monthly prizes. Winners can then gain prizes ranging from £25 to £1 million, tax-free.
Account holders are entered into the monthly prize draw instead of gaining interest on their savings.
The odds of winning a prize are 21,000 to one for every £1 bond. So there are technically more chances of winning with the more bonds you buy.
There’s also no guarantee that you’ll win anything either, meaning some premium bondholders may be saving for years without gaining any winnings.
How many Premium Bonds can I buy?
The minimum number of Premium Bonds someone can buy is £25, while the maximum is £50,000.
Each bond is worth £1.
NS&I Interest Rates
As of March 2024, the NS&I’s interest rate on Premium Bonds has been 4.40%
What are the prizes on Premium Bonds?
Every month, two holders will win £1 million.
The rest of the prizes are worked out depending on the rest of that month’s balance, after the two £1 million prizes.
There will be a number of higher-value band prizes, worth £100,000, £50,000, and £5,000.
There will also be several medium-value band prizes of £1,000 and £500.
The lower-value band prizes are £100, £50, and £25.
How to cash in Premium Bonds
You can cash in either some or all of your Premium Bonds online. You’ll need your holder’s number and bank account details or, if you have an account, you can simply log in.
When is the next Premium Bond prize draw?
The last Premium Bond prize draw was held on Thursday, August 1, with two lucky premium bond holders each scooping £1 million each.
The two winners clinching the top prize of £1m each for August 2024 have been announced as one from Outer London with the number 516FV135553 with a bond purchased in October two years ago. They have £600 in total bonds.
The other had to wait a little longer for their big win, buying their bond in May 2015, with a total holding of £20,000. The winner is from Devon with the number 245FP902498.
The remaining high-value prize winners receive cash bonuses ranging from £100,000 to £5,000.
There are also winners in the medium and lower value bands, ranging from £1,000 to £25.
The next draw is expected on Monday, September 2, 2024.
How to check if you’ve won
You can use NS&I’s prize checker to see if you’ve won anything in the most recent draw, as well as draws in the past six months and older draws.
Alexa owners can also ask their devices to check if they’ve won the monthly draw.
How are Premium Bond winners notified?
NS&I will notify winners via email or text. If you opt to have your prize transferred to your bank account, you’ll receive it by the seventh working day of the month.
Alternatively, you can choose to have your prize reinvested into more bonds.
