It’s October, which means brand new winners in the Premium Bonds draw from National Savings and Investments (NS&I).
During the cost-of-living crisis, saving may not be the number one priority for many people.
But for anyone with savings that they don’t need immediate access to, Premium Bonds are an option.
In March, NS&I increased its Premium Bond prize-fund rate from 3.15 per cent to 3.3 per cent. This followed the rate increase to 3.15 in February and to three per cent from 2.2 per cent in January.
Find out below how Premium Bonds work and how to check if you’ve won anything this month.
How do Premium Bonds work?
Premium Bonds are a way of saving your money while entering into a monthly prize draw, for the chance of winning up to £1 million.
Bonds were first introduced over 60 years ago in 1956 by Harold Macmillan.
Every month, NS&I’s random number generator will select winning Premium Bond holder numbers.
The odds of winning a prize are 24,000 to one for every £1 bond.
These winners will receive prizes ranging from £25 to £1 million, tax-free.
How many Premium Bonds can I buy?
The minimum number of Premium Bonds someone can buy is £25, while the maximum is £50,000.
Each bond is worth £1.
NS&I Interest Rates
NS&I’s interest rate on Premium Bonds is 3.7 per cent.
What are the prizes on Premium Bonds?
Every month, two holders will win £1 million.
The rest of the prizes are worked out depending on the rest of that month’s balance, after the two £1 million prizes.
There will be a number of higher-value band prizes, worth £100,000, £50,000, and £5,000.
There will also be several medium-value band prizes of £1,000 and £500.
The lower-value band prizes are £100, £50, and £25.
How to cash in Premium Bonds
You can cash in either some or all of your Premium Bonds online. You’ll need your holder’s number and bank account details or, if you have an account, you can simply log in.
When is the next Premium Bond prize draw?
Premium Bond prize draw will be held on Tuesday, October 3. The next draw will then be on Wednesday, November 1.
How to check if you’ve won
You can use NS&I’s prize checker to see if you’ve won anything in the most recent draw, as well as draws in the past six months and older draws.
How are Premium Bond winners notified?
NS&I will notify winners via email or text. If you opt to have your prize transferred to your bank account, you’ll receive it by the seventh working day of the month.
Alternatively, you can choose to have your prize reinvested into more bonds.