Premium Bond Calculator
Enter how much you hold in Premium Bonds — see your statistically expected winnings at the current NS&I prize fund rate, and your chances in each monthly draw.
How it works
Premium Bonds pay no interest — instead every £1 bond enters a monthly prize draw. The advertised "prize fund rate" (4.35% from the September 2026 draw) is the total prize pot as a share of all bonds held: it is the MEAN return across all holders, not what a typical holder receives. Odds are 21,000 to 1 per £1 bond per draw.
The honest statistics: because the fund includes two £1 million jackpots and other big prizes, the MEDIAN holder earns noticeably less than the headline rate — most of the "average" is carried by a lucky few. Small holdings feel this hardest: £100 in bonds expects less than one prize every four years. Large holdings (£10,000+) see returns cluster closer to (but still typically below) the fund rate.
Genuine advantages: prizes are TAX-FREE (valuable for higher-rate taxpayers who've used their savings allowance), and capital is 100% HM Treasury-backed with easy withdrawal. HONEST NOTE: the rate is variable — NS&I changes it without notice (this page shows the rate effective from the September 2026 draw and is checked monthly); and in most months your real return is below inflation, so bonds suit "fun + safety" money, not core savings.
FAQ
How much will I win with £50,000 in Premium Bonds?
Statistically about £2,175 a year at the 4.35% prize fund rate — but that is the mean, not a promise: a typical (median) year for a £50,000 holder lands somewhat lower, because part of the fund sits in rare big prizes. With 50,000 entries at 21,000-to-1 odds you'd average roughly 2-3 prizes a month, mostly £25-£100. Every prize is tax-free, which for a 40% taxpayer makes the effective comparison rate against taxable savings about 7.25%.
Are Premium Bonds better than a savings account?
It depends on your tax position and luck tolerance. Versus a taxable account: a 40% taxpayer who has used the £500 personal savings allowance needs roughly a 7%+ gross savings rate to beat a 4.35% tax-free expected return — hard to find. Versus an ISA: a cash ISA paying more than the prize fund rate beats bonds for the MEDIAN holder with certainty. Bonds' unique sell is the lottery upside with zero capital risk; their weakness is that the typical return trails the headline rate.
What are the actual odds of winning £1 million?
Two £1M jackpots are drawn monthly among tens of billions of eligible £1 bonds — for a £50,000 maximum holder the chance is roughly 1 in 500,000 per draw, i.e. about once per 42,000 years of holding. Realistic expectations should centre on the frequent small prizes (£25-£100). Prizes are paid automatically to your bank or reinvested; unclaimed prizes never expire, and you can check old bonds on the NS&I prize checker.