Jasmine Birtles
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How to Buy Premium Bonds (2026): Rates, Odds and Steps
Ruby Layram
28th Sep 2026
Fancy saving money with a chance to win tax-free cash prizes every month? That’s exactly what Premium Bonds offer. Instead of earning interest like a regular savings account, your money goes into a monthly prize draw where you could win anywhere from £25 to £1 million, completely tax-free.
Premium Bonds are run by NS&I (National Savings & Investments) and backed by HM Treasury. That makes them one of the safest places to keep your savings while still being able to get your cash out whenever you need it.
In this guide, we’ll cover the current prize rate and odds, how to buy Premium Bonds step by step, how to buy them for a child, and how to check old bonds you might have forgotten about.
Premium Bonds rate and odds (September 2026)
From the September 2026 draw, the Premium Bonds prize fund rate is 4.35%, up from 3.80%. The odds of each £1 bond winning a prize each month are now 21,000 to 1, up from 22,000 to 1.
This is the second increase this year. NS&I raised the rate from 3.30% to 3.80% in July, after cutting it in April.
| Details | |
|---|---|
| Prize fund rate | 4.35% |
| Odds per £1 bond | 21,000 to 1 each month |
| Prizes | £25 to £1 million |
| Minimum purchase | £25 |
| Maximum holding | £50,000 per person |
| Who can buy | Anyone aged 16 or over, or for a child under 16 |
| Tax | All prizes are tax-free |
What does the prize rate actually mean? It’s the average amount NS&I pays out in prizes each year. For every £100 in Premium Bonds, £4.35 is paid out in prizes across all holders. That doesn’t mean you’ll get 4.35%. Most people with typical luck win less than the headline rate, and with a small holding you could go months without winning anything.
We’ll update this section whenever NS&I changes the rate.
What Are Premium Bonds, Anyway?
Premium Bonds are a savings product from NS&I. Each £1 you put in buys one bond, and each bond gets its own number. Every month, a machine called ERNIE picks winning numbers at random.
The more bonds you hold, the more chances you have to win. But there’s no guaranteed return, so it’s more like a savings account with a lottery twist than a traditional investment.
The big difference from the lottery is that you never lose your stake. You can cash in your bonds at any time and get back what you put in.
Here’s how to get started:
How to buy Premium Bonds: step by step
Step 1: Check if Premium Bonds are right for you
Before you buy, ask yourself:
- Am I happy not earning guaranteed interest?
- Do I like the idea of winning tax-free prizes?
- Do I already have a cash ISA or easy-access account for money I’ll need soon?
Premium Bonds can work well for an emergency fund or for higher-rate taxpayers who have used up their personal savings allowance, because prizes are tax-free. If you want a guaranteed return, a fixed-rate account or a [cash ISA] may suit you better.
Step 2: Decide how much to put in
You can buy Premium Bonds from £25, and you can hold up to £50,000 in total. Each purchase must be at least £25 and in whole pounds.
Most people start small and build up over time. Just remember that with a small holding, your chances of winning in any given month are low.
Step 3: Buy through NS&I
You can only buy Premium Bonds directly from NS&I. You can’t buy them through a bank or an investment platform.
Online (the easiest way)
- Go to nsandi.com and choose Premium Bonds.
- Register for an NS&I account if you don’t have one.
- Choose how much you want to buy.
- Pay by debit card.
- You’ll get a confirmation, and your holder’s number will appear in your account.
By bank transfer
If you already hold Premium Bonds, you can top up by bank transfer or standing order. Use your Premium Bonds holder’s number as the payment reference, not your NS&I number. The money must come from a UK bank account in your name. Any transfer that would take you over £50,000 is refunded in full, so check your balance first.
By phone
Call NS&I on 08085 007 007 and they’ll take you through it.
By post
Download the Premium Bonds application form from the NS&I website, fill it in and post it with a cheque. This is the slowest option.
Step 4: Know when your bonds enter the draw
This catches a lot of people out. New bonds don’t go into next month’s draw straight away. They have to be held for a whole calendar month first.
For example, if you buy bonds in mid-May, they need to be held throughout June, and they’ll go into the July draw onwards.
Bonds bought by reinvesting a prize are the exception. They go straight into the following month’s draw.
Step 5: Check if you’ve won
The draw takes place at the start of every month. You can check your results by:
- using the NS&I prize checker app
- logging in to your NS&I account
- using the prize checker on the NS&I website
When you win, you can have the prize paid into your bank account or automatically reinvested into more bonds. Reinvesting helps your holding grow over time.
Step 6: Cashing in
You can cash in some or all of your Premium Bonds at any time. Just log in to your NS&I account and request a withdrawal. The money goes to your nominated bank account within a few working days, and there’s no penalty.
How to buy Premium Bonds for a child
Anyone aged 16 or over can buy Premium Bonds for a child under 16. That includes parents, grandparents, aunts, uncles and family friends.
Also read: The best ETFs for a Junior ISA
There are a few rules to know:
- A parent or guardian must look after the bonds. Until the child turns 16, a parent or guardian manages the bonds and receives all the letters, even if someone else bought them.
- Get permission first. If you’re not the child’s parent or guardian, check they’re happy to look after the bonds and to share their details with NS&I.
- Expect ID checks. NS&I needs to confirm the identity of everyone on the application. Your gift only reaches the child once all checks are done, which can take up to four weeks.
- The same limits apply. Children can hold from £25 up to £50,000 in total.
Parents and guardians can buy for their own child online, by phone or by post. Anyone else can buy online or by post.
How to check old Premium Bonds and unclaimed prizes
Found some old bonds in a drawer, or think a relative might have held Premium Bonds? It’s worth checking.
As long as the bonds haven’t been cashed in, they’re still valid and still entered into the monthly prize draw. That includes very old bonds bought decades ago.
If you have the holder’s number
Enter it into the NS&I prize checker or the app to see if any prizes are waiting. You can write to NS&I to get old bonds added to your online account.
If you don’t have the holder’s number
Use the NS&I Tracing Service. It’s free, and there’s no time limit to make a claim. You’ll be asked for current and previous names and addresses, roughly when the bonds were bought and how much they were worth. NS&I aims to confirm what it finds within a month.
You can also use the free My Lost Account service, which searches NS&I, banks and building societies at the same time.
If the bonds belonged to someone who has died
An executor, or someone with power of attorney, can use the Tracing Service to find the bonds. The bonds can’t be transferred to a beneficiary. They stay in the draw for up to 12 months after the date of death, and then the money is paid to the estate.
If the person held £5,000 or more across all NS&I products, you’ll usually need probate or letters of administration. For smaller amounts, a death certificate and claim form are normally enough.
Worth knowing: NS&I holds over £100 million in unclaimed prizes across about 2.6 million wins. It holds on to them until the owner comes forward.
Are Premium Bonds Worth It?
It depends on your financial goals. If you love the idea of potentially winning tax-free cash while keeping your money safe, then Premium Bonds are a great option. However, if you prefer guaranteed interest, you might be better off with a high-yield savings account or a cash ISA.
Either way, now you know exactly how to buy Premium Bonds for the first time, without the confusion. So, are you feeling lucky?
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Premium Bonds FAQs
What is the current Premium Bonds prize rate?
From the September 2026 draw, the prize fund rate is 4.35% and the odds are 21,000 to 1 per £1 bond.
How long before my Premium Bonds enter the draw?
New bonds must be held for one full calendar month before they’re eligible. Bonds bought in May enter the July draw.
Can I buy Premium Bonds for my grandchild?
Yes. Anyone aged 16 or over can buy Premium Bonds for a child under 16, but a parent or guardian must look after them until the child turns 16.
Are old Premium Bonds still valid?
Yes. If they haven’t been cashed in, they’re still entered into every monthly draw, and any prizes are held with no time limit.
Are Premium Bond prizes taxable?
No. All Premium Bond prizes are tax-free.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. Companies listed above are not necessarily endorsed by Money Magpie. When investing your capital is at risk.
My mother past away 35 years ago and clearing out some papers and memories stashed in a shoebox all this time I noticed a couple of premium bonds. At the time purchased the bonds were only £1 but curiosity set in so my question is is there a website that can be viewed to check these old bonds (not hopeful but stranger things happen all the time, even unexpected miracles.
My father, who is now deceased, bought premium bonds back in the 1960/70s and I have tried to find if they have won anything. I have been told I need to say where they were bought from. Obviously I don’t know, can you help or advise me.
Hi, I am having a problem with signing in ? and also having forgotten my password ?
When I go onto the page to change my password, I insert my Holders Number, Name, continue and it comes up all wrong. Confused ????
What I want is the form for sending you my Winning Premium Bonds so as you can insert them into my bank account.
Please help me by sending me this form, thank you for your time