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Premium Bonds

Premium Bonds offer your clients a serious investment together with the fun and excitement of a chance to win tax-free prizes.

Key features

  • Potential high prize wins
  • Invest for a child under 16
  • Tax-free savings
  • Invest online or by phone
  • Invest by post


Annual prize fund interest rate
  • Minimum
  • Maximum
  • The odds of each £1 unit winning a prize are 30,000 to 1 each month

The amount that your clients can invest is £50,000, giving investors more chances to win tax-free prizes. In addition to this ERNIE picks two £1million jackpot winners.

Who is this suitable for?

  • Clients wanting the chance every month to win a £1 million jackpot and other tax-free prizes
  • Clients wanting to make the most of tax-free investment opportunities
  • Clients that have £100 or more to invest
  • Clients who want 100% security for their money

Who is this not suitable for?

  • Clients wanting a regular income from their savings
  • Clients who are looking for guaranteed returns
  • Clients who are concerned about inflation eroding the value of their savings
  • Clients who want to buy them as a gift, unless for their child, grandchild or great-grandchild

FAQs about Premium Bonds

  • Does buying Premium Bonds in a sequence increase the chances of winning?

    No. ERNIE – the Premium Bonds draw machine – generates random numbers in the monthly draw. The first one that comes out that matches a Premium Bond number wins the first £1 million jackpot, and so on. So it is completely random

  • Are the winning Premium Bonds the ones bought most recently?

    It’s true to say that more Bonds have been bought since 2000, so consequently there would be more recent winners. However that’s not always the case. For example in 2004 the £1 million jackpot was won by a customer with only a £17 holding, who bought them in 1959!

  • Does a client have to hold the maximum £50,000 to have any chance of winning?

    Clearly the more Bonds held the greater the chance of winning. However it is completely random and someone with only £400 invested in Premium Bonds won the £1 million jackpot in the first draw of 2015. In 2004, the same happened with a client who held just £17 in Premium Bonds.

  • Do only people in the South East of England win the £1m jackpot?

    Although it’s true to say more Bonds are held in the South East of England than anywhere else, winners regularly come from other parts of the country. For example both winners of the £1 million jackpot in the January 2016 draw were from Leicester.

  • Can Premium Bonds be held in a Trust?

    No. Premium Bonds were designed as a tax-free product and the maximum holding limit gives individuals the opportunity to have a potential tax-free return by way of the prize draw. The Premium Savings Bond Regulations do not allow for Premium Bonds to be invested in by a trust as the investment was created for individuals to invest in. Only solely named individuals can invest in Premium Bonds - the regulations do not allow joint investors or anybody, whether incorporated or unincorporated, to invest in Premium Bonds as this would go against the intention of the investment

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