Premium Bonds Calculator
Estimate average yearly prize winnings and the chance of winning from NS&I Premium Bonds.
About the Premium Bonds Calculator
Premium Bonds pay no interest; instead each £1 bond enters a monthly prize draw. The prize fund rate is the average yearly return across all bonds, and the odds are the chance of any single £1 bond winning in a month. Your capital is 100% backed by HM Treasury.
The formula
Average winnings = holding × prize fund rate; expected prizes a month = holding ÷ odds
Worked example
Example: Average yearly winnings = £1,056
- Inputs: Premium Bonds held: £22,000; Prize fund rate: 4.8%; Odds per £1 bond, 1 in: 23,000.
- Formula: Average winnings = holding × prize fund rate; expected prizes a month = holding ÷ odds
- Result: Average yearly winnings = £1,056
- Expected prizes per month: 0.96
- Chance of no prize in a month: 38.4%
Things to keep in mind
- Actual winnings vary widely; many holders get less than the average.
Questions people ask
Are winnings taxed?
No, prizes are free of UK income tax and capital gains tax.
Is the average a good guide?
The median holder earns less, because a few large prizes lift the average.