£25,000 in Premium Bonds — Average Winnings (September 2026 draw)
At the current 4.35% prize fund rate, £25,000 in Premium Bonds implies an average of about £1,088 a year in tax-free prizes — but the average flatters: typical luck pays less, and small holdings can win nothing.
| Implied average winnings (year) | £1,088 |
| Implied average (month) | £91 |
| Chances per monthly draw | 1 (one per £1 Bond at 21,000:1) |
| Prize fund rate | 4.35% — variable, September 2026 draw |
For a different holding use the premium bond calculator; to plan regular saving try the savings goal calculator.
Why "average" overstates what most people win
The prize fund rate spreads the whole monthly pool across all Bonds — including two £1m jackpots and other large prizes that almost nobody wins. Strip those out and the median holder's return sits meaningfully below the headline rate; with smaller holdings the gap widens because outcomes are lumpy (prizes start at £25, so you either win at least £25 or nothing). Prizes are tax-free and capital is Treasury-backed, which is the honest case FOR Premium Bonds — the honest case against is that steady interest elsewhere may pay more, reliably.
FAQ
How much will I win with £25,000 in Premium Bonds?
The prize fund rate is 4.35% (September 2026 draw), so £25,000 implies an AVERAGE of about £1,088 a year — roughly £91 a month. But that average is inflated by the two £1m jackpots and other big prizes: the typical holder wins LESS than the headline rate implies, because a tiny number of winners take a large share of the fund. The smaller your holding, the lumpier the outcome — with £25,000 you have about 1 chance per monthly draw at odds of 21,000 to 1 per £1 Bond.
Are Premium Bonds better than a savings account?
It depends on tax and luck. Prizes are tax-free, so for a higher-rate taxpayer who has used their Personal Savings Allowance, the 4.35% prize fund rate competes well with taxable savings rates. For a basic-rate taxpayer with savings interest under the £1,000 allowance, a top easy-access account paying more than the prize rate usually beats Premium Bonds — especially with small holdings, where you can easily win nothing at all in a year. Your capital is 100% secure either way (NS&I is Treasury-backed).
Is the prize fund rate guaranteed?
No — NS&I changes it without notice, sometimes several times a year, and this page reflects the rate effective from the September 2026 draw. The rate is a description of the total prize pool relative to all Bonds held, not a promise to any individual holder: your actual return is decided by the monthly draws. The £50,000 maximum holding and the 21,000-to-1 odds per £1 Bond are also set by NS&I and can change.