United Kingdom Premium Bonds: limits and prize draws
Premium Bonds offer entry into a monthly prize draw instead of interest. The minimum purchase, total holding limit and draw eligibility are separate product rules.
- Minimum purchase
- £25 for each investment.
- Maximum holding
- £50,000 in total.
- Prize range
- £25 to £1 million; prizes are tax-free.
Purchase and holding limits
NS&I states that each investment must be at least £25 and total holdings cannot exceed £50,000. NS&I, Premium Bonds (opens in a new tab).
Bond numbers above that limit are not eligible for prizes; NS&I can reclaim a prize paid in error on such a number. NS&I, Premium Bonds (opens in a new tab).
A child with more than one nominated parent or guardian must still not hold more than £50,000 in total. NS&I, Premium Bonds (opens in a new tab).
How prizes are drawn
Premium Bonds do not earn interest. NS&I, Premium Bonds (opens in a new tab).
ERNIE, NS&I’s random-number generator, generates winning numbers for the monthly prize draw. Every £1 Bond entered has the same odds of winning. Prizes range from £25 to £1 million and are exempt from UK Income Tax and Capital Gains Tax. NS&I, Premium Bonds (opens in a new tab).
Bonds must be held for a whole month before becoming eligible for the draw. The prize fund rate, prize values, odds and prize allocation are variable and can change at any time, including before new Bonds enter their first draw. Returns are not guaranteed. NS&I, Premium Bonds (opens in a new tab).
Scope
This is general information based on the issuer’s product page, without endorsement or a recommendation. No variable prize-fund rate or odds figure is reproduced. No matching calculator or worked return example is available here.