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Premium Bonds

Happy days!

Win from £25 up to £1 million, tax-free, in a monthly prize draw

Premium Bonds: facts and figures

  • Odds of winning for each £1 Bond number 26,000 to 1
  • Annual prize fund interest rate 1.35%
  • Tax All prizes tax-free

Suitable for savers who:

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

Not for savers who:

  • want a regular income
  • are looking for guaranteed returns
  • are concerned about inflation eroding their savings
  • want to buy them as a gift, unless for their child or (great) grandchild

Investing in Premium Bonds

Summary box: key product information

Account name

NS&I Premium Bonds

Interest rates

No interest earned. Instead, the interest rate funds a monthly prize draw for tax-free prizes.

See prize draw details

Tax status

All prizes are tax-free

Conditions for bonus payment

Not applicable

Withdrawal arrangements

No notice, no penalty

Access

Apply online, phone, post or at some Post Office® branches. Cash in online, phone or by post.

Definitions

Tax-free means that prizes are exempt from UK Income Tax and Capital Gains Tax.

  • Our Premium Bonds

    Anyone aged 16 or over can buy Bonds.

    Parents, legal guardians and (great) grandparents can invest on behalf of their child or grandchild aged under 16.

    Invest from £100 up to £50,000 in total.

  • Buying for children

    Premium Bonds can make a special gift for your child or (great) grandchild.

    Until the child’s 16th birthday the parent or guardian nominated on the application looks after the Bonds, regardless of who buys them.

    We’ll send the Bond record, any prizes won and payment for cashed in Bonds to the nominated parent or guardian until the child is 16.

  • Interest and tax

    Premium Bonds don’t pay any interest. Instead your Bonds enter a monthly prize draw for a chance to win tax-free prizes. Remember that inflation can reduce the true value of your money over time.

    Find out more about the draw.

    Any prizes you win are completely free of UK Income Tax and Capital Gains Tax.

    Find out more about tax and savings from HMRC

  • Ready to apply?

    Read the brochure with terms and conditions before you apply

    We last updated the terms and conditions on 1 June 2015.

    Apply online

    Apply by phone

    Want to buy for a child under 16?

    Parents or legal guardians can apply online, by phone, by post or at a Post Office® branch. If your child already has some Premium Bonds and you want to buy some more online or by phone, you’ll need to be registered first. This could take a few days while we set up your registration.

    Grandparents and great grandparents can apply by post or at a Post Office® branch.

    Print and complete an application form

    Or ask at a Post Office® counter for an application form. You’ll need to give your completed form back to the Post Office® and pay at the counter.

    Living outside the UK?

    Find out what you need to do differently

The prize draw

The prize draw

We pay out over two million prizes every month to lucky Bond holders whose numbers are generated completely at random. Prizes range from £25 to £1 million and are all tax-free.

  • When do Bonds go into the draw?

    Your Bonds become eligible for the draw one full calendar month after you buy them. So when you buy Bonds in November, they’ll be in every draw from January.

  • How does the draw work?

    We’ll give you a unique Bond number for every £1 you invest. Every number has a separate and equal chance each month of winning a prize. So the more Bonds you buy, the better your chances of winning!

    ERNIE (our Electronic Random Number Indicator Equipment) generates numbers completely at random. We match those numbers against eligible Bond numbers to determine the lucky winners. Every £1 Bond number has exactly the same chance of winning.

  • Who checks that the draw is random?

    Each month, the Government Actuary’s Department (GAD) does an independent check to ensure ERNIE’s output is random. GAD then issues a certificate to confirm it has no reason to believe the draw isn’t random. We can only publish winning numbers and pay out prizes when that certificate has been issued.

  • How are prizes paid?

    You can choose one of three ways to receive your prizes:

    • Direct to your bank account with notification by email (you'll need to be registered for our online and phone service)
    • Automatically reinvest into more Premium Bonds
    • By post with a warrant (like a cheque)

    For prizes of £5,000 and over, we’ll send you a claim form before paying out or reinvesting the prize. And if you’re lucky enough to scoop a jackpot, our representative ‘Agent Million’ will visit you in person. Make sure you ask for identification – we’ll always have it ready for you.

    Find out more about getting prizes.

Looking after your Bonds

Looking after your Bonds

You can manage your Premium Bonds online and by phone. Register first. Then log in or call us to check your balance and transactions, including any prizes you’ve won.

You can also give us instructions by post.

We’ll send you a Bond record (a bit like a statement) every time you buy or cash in Bonds. You can choose to go paperless or get it by post.

Your holder’s number

We give a holder’s number to everyone who owns Premium Bonds. It links all the individual Premium Bonds you have. Quote it whenever you buy more Bonds, cash in or have a query. It’s different to your NS&I number, which we give you when you register for our online and phone service.

  • Three ways to get your prizes

    1. Paid directly to your bank account

    Already registered for our online and phone service? Simply log in and click on the yellow banner under the left hand menu. You’ll need to give details of your nominated bank account and your email address so we can tell you the good news if you win.

    Not registered yet? Find out how

    2. Automatically reinvested into more Bonds

    You can choose to automatically reinvest prizes into more Premium Bonds. Your Bonds will go straight into the next prize draw.

    Log in

    Automatic reinvestment form

    Read this before setting up an automatic reinvestment
    • Only future prizes will be eligible for automatic prize reinvestment. We’ll need a few days to set up this service for you, so don’t leave it too late in the month.
    • Hold the maximum £50,000? You won’t be able to reinvest any prizes.
    • After we’ve set up your automatic reinvestment, we will issue new Bonds for you whenever you win a prize, and tell you which of your numbers won. For prizes of £5,000 or more we’ll contact you before reinvesting your prize.
    • Received a prize warrant (like a cheque) and want to reinvest it? You'll need to post it to us with a Premium Bonds application form. The minimum investment is £100, so if you've won £25, you'll also need to send us a cheque for £75.

    3. Paid by post

    Unless you choose option 1 or 2, we’ll pay any prizes you win by posting you a warrant (like a cheque). You’ll then need to take the warrant to your bank and wait for it to clear.

  • Buying more Bonds

    You can buy by debit card using our secure online and phone service. Or you can buy by post and at some Post Office® branches.

    Existing customers can also buy by bank transfer and standing order.

    Each investment must be at least £100, or £50 for bank transfers and standing orders.

    By debit card

    Log in or call us at any time with your debit card details.

    By post

    Complete an application form and send it to us with a cheque payable to National Savings and Investments .

    At selected Post Office® branches

    Ask at a Post Office® counter for a Premium Bonds application form. You can pay by debit card or cheque payable to Post Office Ltd.

    By bank transfer and standing order

    Only for customers who already have some Premium Bonds and know their holder’s number.

    Give the following details to your bank and tell them how much to transfer. You’ll normally be able to do this online, by phone or in a branch, depending on your bank.

    Payee name: National Savings and Investments
    Account number: 11994808
    Sort code: 08 31 15
    Reference: Give your Premium Bonds holder’s number (not your NS&I number) as the reference – enter it without any hyphens, spaces or full stops. You must enter it correctly for your investment to be accepted
    Read this before buying by bank transfer
    • You must be aged 16 or over and buying Bonds in your own name.
    • The bank account must be a UK account in your name.
    • When buying by bank transfer, you are confirming that you have read and accepted the current terms and conditions.
    • Minimum for each investment £50.
    • Any transfers that would take you over the £50,000 limit will be automatically refunded in full to your bank account, so you may want to check your Premium Bonds balance before investing.

    By standing order

    Ask your bank to set up a standing order using the above details and tell them how much you want to pay (minimum £50) and how often. Or download and print a standing order form then complete it and give it to your bank.

    Print and complete a standing order form

  • Cashing in

    You can cash in all or part of your Bonds at any time. Registered for our online and phone service? Simply log in or call us.

    Log in

    Call us

    Or download, print and complete a cashing in form. Then post your completed form to us together with the Bond certificates to be cashed in (if you have them).

    Print and complete a cashing in form

    Don’t have access to a printer? Call us and we’ll send you a copy of the form.

    When you cash in online or by phone, we’ll send your payment within three working days. When you do this by post, we will send your payment within eight working days.

  • Changing your personal details

    It’s important to keep us up to date with any changes so we can make sure you receive any prizes you win.

    Log in or call us if you’ve registered to use our online and phone service.

    Or call us and ask us to send you a Premium Bonds change of details form.

Meet ERNIE

Meet ERNIE

He's no ordinary number-cruncher, he's a highly specialised random number machine.

Find out more Find out more