Premium Bonds

Premium Bonds from National Savings and Investments (NS&I) give you the chance to win tax-free cash prizes. The bonds don’t pay interest, but you can win between £25 and £1 million in monthly prize draws.

When may Premium Bonds be for you?

Premium Bonds may be for you if you:

  • Want the chance to win tax-free cash prizes in a monthly draw.
  • If you are a parent, guardian, grandparent or great grandparent wanting to buy for a child under 16 years old.
  • Have £100 or more to invest.

Premium bonds might not be for you if you want:

  • A regular income.
  • Guaranteed returns.
  • Concern about the impact of inflation on your savings.

How do they work?

  • To get started, you’ll need to invest at least £100 (or £50 if you agree to put in money regularly by standing order).
  • You can keep buying bonds until you reach the maximum holding level. That level is £50,000.
  • You get a unique bond number for every £1 invested. So if you save £100, you’ll get 100 bond numbers (each with a chance to win a prize).
  • Once you have held your bonds for a full month, they are included in a monthly draw and you stand a chance of winning a cash prize.
  • You can buy them for yourself or on behalf of your child, grandchild or great-grandchild. You have to be aged at least 16 to purchase Premium Bonds for yourself.

Risk and return

Your chances of winning the top prize are very slim – most people will win smaller prizes or nothing at all.

  • All the money you put into Premium Bonds is secure.
  • There’s a very small chance you could earn a very high tax-free return.
  • You won’t earn regular income on your bonds.
    Most people who buy Premium Bonds will earn only a small amount as a percentage of the money they contribute.
  • Unless you win one of the bigger prizes, your return is unlikely to beat inflation. In other words, your money probably won’t grow fast enough to keep up with rising costs and have the same buying power over time due to it being eroded by inflation.

How to access your money

You can cash in your Premium Bonds at any time without penalty. This can be done by:

It could take over a week for the money to reach your account.

Are Premium Bonds safe and secure?

Your money is secure, since Premium Bonds are fully backed by the government.

How to buy

You can buy Premium Bonds directly from NS&I by registering your details on their website or by calling 0500 500 000.


Any prizes you win on a Premium Bond are free from UK Income Tax and Capital Gains Tax.

What if things go wrong?

NS&I voluntarily works within the spirit of the Financial Conduct Authority guidelines.

Find out how to sort out a money problem or make a complaint.

Next steps

For more information on Premium Bonds visit the NS&I website or download a Premium Bonds brochure here.