What are Premium Bonds?
Premium Bonds are effectively a savings account you can put money into, where instead of savers earning interest, tax-free prizes are awarded in a monthly prize draw – meaning there’s no guarantee you’ll get any return on your money.
Prizes range from £25 to £1 million. In September 2018, there were 3,117,186 prizes won, with a total value of £89,099,575.
It’s worth bearing in mind that the nearest thing Premium Bonds have to an interest rate is their annual prize rate, which means ‘on average’ the annual return is 1.4% – but in reality, this is just a vague benchmark and there’s no guarantee you’ll win anything at all. See our Premium Bonds guide for full info.