Skip to content
Glossary · Savings

Premium Bonds

Where a link is marked * or labelled Ad, it is a partner advertisement: we receive commission at no extra cost to you. Links without a * or Ad label earn us nothing. How we make money.

Last reviewed:

Definition: An NS&I savings product where each £1 bond is entered into a monthly tax-free prize draw instead of paying interest. Maximum holding £50,000.

Prizes range from £25 to £1m. The annual prize fund rate is set by NS&I (variable). Capital is 100% safe (HM Treasury-backed) but returns are highly variable for small holdings.

Primary source: nsandi.com/products/premium-bonds

More Savings terms