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Premium Bonds calculator

Premium Bonds pay tax-free prizes instead of interest. Enter how much you hold to see the average prizes at the current prize fund rate, your chance of winning each month, and the savings rate you would need to match it after tax. Prizes are not guaranteed.

Checked 22 October 2026.

This calculator shows averages and chances for a Premium Bonds holding. It cannot predict your prizes. It assumes all your bonds are already in the draw and that you hold the same amount all year.
£

Whole pounds, up to £50,000.

% a year

NS&I's rate for the October 2026 draw. Change it if NS&I has changed it.

to 1

The odds are 1 in this number each month. NS&I says '21,000 to 1'.

Average prizes a year

£435.00

Tax-free

These are averages, not a promise. In any month or year your prizes could be much lower or higher, and you may win nothing.

Average prizes a month
£36.25
Expected number of prizes a year
5.71
Chance of at least one prize in a month
37.89%
Chance of winning nothing in 12 months
0.33%
Savings rate needed to match, basic-rate taxpayer
5.44%
Savings rate needed to match, higher-rate taxpayer
7.25%
Savings rate needed to match, additional-rate taxpayer
7.91%
Show the working
  1. Average prizes a year = holding × prize fund rate = £435.00.
  2. Average prizes a month = average prizes a year ÷ 12 = £36.25.
  3. Expected number of prizes a year = holding × 12 ÷ the odds = 5.71.
  4. Each £1 Bond has a 1 in 21,000 chance of a prize each month, as NS&I does when it sets the number of lower-band prizes.
  5. Chance of at least one prize in a month = 1 − (1 − 1 ÷ odds) to the power of the holding = 37.89%.
  6. Chance of winning nothing in 12 months = (1 − 1 ÷ odds) to the power of 12 × the holding = 0.33%. This assumes the same holding and independent monthly draws.
  7. Savings rate for a basic rate taxpayer, if all interest is taxable = prize fund rate ÷ (1 − 20%) = 5.44%.
  8. Savings rate for a higher rate taxpayer, if all interest is taxable = prize fund rate ÷ (1 − 40%) = 7.25%.
  9. Savings rate for a additional rate taxpayer, if all interest is taxable = prize fund rate ÷ (1 − 45%) = 7.91%.
  10. It assumes all your bonds are already in the draw and that you hold the same amount all year. It cannot predict your prizes.

What are Premium Bonds?

Premium Bonds are an NS&I product. Instead of paying interest, there is an annual prize fund rate that funds a monthly draw, and each £1 Bond is entered into it. All prizes are free of UK Income Tax and Capital Gains Tax. You can hold up to £50,000.

What are the current prize fund rate and odds?

For the October 2026 draw, the prize fund rate is 4.35% and the odds of any £1 Bond winning a prize are 21,000 to 1. NS&I says the rate, prize values and odds may change from time to time, so check NS&I before you rely on these figures.

How much could you win on average?

Multiply your holding by the prize fund rate. At 4.35%, £10,000 gives an average of £435.00 a year in tax-free prizes. It is an average. Your own prizes can be much lower or higher, and in some months you may win nothing.

Average tax-free prizes a year at 4.35%
You holdAverage prizes a year
£1,000£43.50
£5,000£217.50
£10,000£435.00
£25,000£1,087.50
£50,000£2,175.00

What are your chances of winning?

Each £1 Bond has a 1 in 21,000 chance of a prize in each monthly draw, so more bonds mean more chances. The table shows the chance of at least one prize in a month and the chance of winning nothing across 12 months.

Your chances at 21,000 to 1
You holdChance of at least one prize in a monthChance of winning nothing in 12 months
£1,0004.65%56.47%
£5,00021.19%5.74%
£10,00037.89%0.33%
£25,00069.59%Less than 0.01%
£50,00090.75%Less than 0.01%

When do your bonds enter the draw?

In most cases you need to hold bonds for a whole month before they are eligible for the draw. NS&I's example is that bonds bought any time in November are in the draw in January. The calculator assumes all your bonds are already eligible.

How do Premium Bonds compare with savings interest?

Prizes are tax-free, so compare them with interest after tax in the savings calculator. If all your interest is taxable, a basic-rate taxpayer would need the savings rate in the table to match the prize fund rate. Prizes vary, while a savings rate is set in advance.

Savings rate needed to match 4.35% after tax
Tax bandSavings rate needed
Basic rate (20%)5.44%
Higher rate (40%)7.25%
Additional rate (45%)7.91%

This assumes all your interest is taxable. Many savers pay no tax on some interest because of allowances.

GOV.UK says the rates of income tax on savings income rise by 2 percentage points from April 2027.

How are Premium Bonds prizes shared out?

NS&I splits the prize fund into higher, medium and lower bands and pays two £1 million jackpots first. In the October 2026 draw the split is 10% higher, 10% medium and 80% lower. NS&I sets the lower-band prizes so the total number of prizes equals the eligible £1 Bonds divided by the odds.

Common questions

Are Premium Bonds prizes taxable?

No. NS&I says all Premium Bonds prizes are free of UK Income Tax and Capital Gains Tax.

What is the most I can hold in Premium Bonds?

NS&I says individuals can hold up to £50,000 in Premium Bonds, including those aged under 16.

Is the prize fund rate the interest I will get?

No. It is the annual rate that funds the monthly prize draw, shared out as prizes. Your own prizes can be well above or below the average, and in any month you may win nothing.

Can the prize fund rate change?

Yes. NS&I says the prize fund rate, prize values, odds of winning and the way it allocates the number of prizes of each value may change from time to time. Check NS&I for the current figures.

What do odds of 21,000 to 1 mean?

Each £1 Bond has a 1 in 21,000 chance of winning a prize in a monthly draw. The calculator uses that figure, as NS&I does when it sets the number of lower-band prizes. More bonds give more chances.

How are the winning bonds chosen?

NS&I uses a machine called ERNIE to generate winning Bond numbers every month. NS&I says the output is completely random, so nobody can predict the numbers or influence the results.

Does this calculator include prizes I reinvest?

No. It shows averages for the holding you enter. If you reinvest prizes into more bonds, your holding, and your chances, would grow over time.

Sources

Checked 22 October 2026:

Nothing you enter leaves your device. This is not financial or tax advice. Interest rates and tax rules can change. Check your account terms and GOV.UK before you decide.