Premium bonds - Community Forum (2024)

FAQs

How often do people win $1,000,000 on Premium Bonds? ›

What are the odds of winning the Premium Bond jackpot? If you fancy the £1 million jackpot, of which there are two lucky winners each month, then for every £1 bond you hold, in any one month, you have a one in 59,082,205,208 chance.

The consistent winners are the 1.16 million people who have the maximum £50,000. They hold almost half of all premium bonds and, at current odds of 21,000:1, can expect a monthly stream of tax-free prizes: two a month and three almost every other month, 28 or 29 a year totaling £1,860.

Your chance of winning a prize will, in statistical terms, depend on how many bonds you hold because larger holdings mean more entries in the prize draw. Those with the maximum £50,000 holding are statistically more likely to win a monthly prize, although there are no guarantees.

I've always used this website to calculate the probabilities for winning each prize in a month or year. It has now been updated to show how often you can expect to win each prize. For £50k of bonds, you can expect to win the £1M once every 101,215 years. On the plus side, you'll win a £1k prize every 13 years.

MW: How do winners get told when they've won the £1 million jackpot? NS&I says: These customers receive a visit from “Agent Million”. This person is an NS&I employee who travels the country to give our lucky jackpot winners the good news. We actually have five Agent Millions.

How long does it take to cash in Premium Bonds? According to NS&I, it takes up to three banking days for the money to reach your account, unless you have elected to cash in after the next draw.

In fact, the oldest bond to ever scoop the £1million jackpot was bought in 1959 — and was picked out as a winner by ERNIE 45 years later in 2004. The winner, from Newham in London, had a holding of just £17.

If the NS&I savings you are claiming include Premium Bonds, you can continue the holding in the deceased's name. Bonds will remain in each prize draw for up to 12 months after the date of the customer's death. To keep the Bonds invested, you'll need to send the Bonds to us along with the completed claim form.

Now it has been revealed that most of us will never win anything from our Premium Bonds. AJ Bell has revealed that 64% of Premium Bond holders have never won a prize. That's 14.4m people holding bonds that haven't made any return at all.

If you're happy to take more risk for the possibility of better returns, then a Stocks and Shares ISA might be better for you. If you might need emergency access to your money, bear in mind that Premium Bonds can take up to three banking days to process withdrawals.

Are 50 year old Premium Bonds still valid? ›

This will also tell you if you've got any unclaimed prizes! Premium bond winnings never expire, so even you won back in the 1950s, the money is still good.

There's no investment risk: Because Premium Bonds are government-backed there is no chance of losing your money. This used to be more of a selling point, but the Financial Services Compensation Scheme (FSCS) currently protect all UK savings accounts up to £85,000 per person, per institution the savings are held with.

Invest as much as you can afford: The more premium bonds you hold, the greater your chances of winning. While the minimum investment is 25, investing more will increase your chances of winning a prize. 2. Keep your bonds for the long term: The longer you hold your premium bonds, the more chances you have of winning.

If you do win, there a several methods of how to cash in your premium bonds. Prizes can be paid into a UK bank account or you can choose to reinvest, putting your winnings back into premium bonds. To cash in your premium bonds you'll need your your holder's number and bank account details.

All prizes are tax-free.

Since introducing the £1 million jackpot prize, we've had winners in every UK nation. It makes no difference where you live or how long you've held your Premium Bonds, each bond has an equal chance of winning a prize in the monthly draw.

If you do win, there a several methods of how to cash in your premium bonds. Prizes can be paid into a UK bank account or you can choose to reinvest, putting your winnings back into premium bonds. To cash in your premium bonds you'll need your your holder's number and bank account details.

That was enough to persuade me to take a chance on Premium Bond prizes to give me a return on my savings. What's the case for Premium Bonds now? The Premium Bonds annual prize fund rate has risen appreciably since 2021 and is currently 4.4%.