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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
  • Odds of winning for each £1 Bond number
    24,500 to 1

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
  • Clients who want to buy them as a gift, for their child, grandchild or great-grandchild

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

FAQs about Premium Bonds

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

    Jackpot winners have a varied amount invested – one winner of the £1 million jackpot only had £17 in Premium Bonds! However, the more Bonds you hold, the better your chances of winning.

    Clearly the more Bonds held the greater the chance of winning.

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

    If it seems that more prizes are won by holders in the South East, that's because there are more Bonds held there compared with the rest of the UK. However 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 while November 2017 reached Edinburgh and July 2018 South West Wales.

  • Can Premium Bonds be held in a SIPP or SSAS?

    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

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

    Each £1 Bond has an equal chance of winning, regardless of when or where it was bought. Over 95% of eligible Bonds have been bought since the year 2000. So even though Premium Bonds have been on sale for over 60 years, this is why newer Bonds seem to win more frequently. When ERNIE randomly generates winners, he doesn’t store any numbers, so there’s no way any Bonds can be left out.

    A few years ago the £1 million jackpot was won by a customer with only a £17 holding, who bought them in 1959!

  • 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

  • How is the Premium Bond prize fund calculated?

    We hold a prize draw every month with two £1 million jackpots. We set the size of the prize fund by calculating one month’s interest on the total value of all eligible Bonds, at the annual prize fund interest rate. All prizes are free from UK Income Tax and Capital Gains Tax.

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