How much could your Premium Bonds win? Enter your holding and the prize fund rate to see the average tax-free prize money a year — and your realistic odds of winning each month and over a year. Remember: it's an average, never a promise.
Prize fund rate · odds
Premium Bonds from NS&I don't pay interest. Instead, every £1 bond is entered into a monthly prize draw, with tax-free prizes from £25 up to two £1 million jackpots. The headline prize fund rate (3.60% from the early-2026 draws) is the average return across all bonds — but because a handful of huge prizes pull the average up, the typical holder wins less than that rate suggests.
Premium Bonds are 100% capital-secure (backed by the Treasury) and every prize is tax-free, which suits higher-rate taxpayers who have used their Personal Savings Allowance and want a flutter with no risk to capital. But a guaranteed savings account often beats the average Premium Bond return — compare with the savings calculator and a fixed deal on the fixed rate bond calculator. For tax-free saving with a guaranteed rate, an ISA may be better.
The prize fund rate (3.60% from early-2026 draws) is the average tax-free return across all bonds — about £720/year on a £20,000 holding. But it's only an average; a few huge prizes inflate it, so most holders win less.
The current odds are 22,000 to 1 for each £1 bond each month. More bonds means more entries — a £50,000 holder wins small prizes most months, while a small holder may win nothing for a long time.
No — all Premium Bond prizes are free of Income Tax and Capital Gains Tax. That suits higher and additional-rate taxpayers who've used their Personal Savings Allowance.
It depends — Premium Bonds are 100% secure and tax-free but pay nothing guaranteed. A fixed or easy-access account pays a guaranteed rate that often beats the average Premium Bond return, though interest may be taxable.
