Over 24 million people in the United Kingdom own Premium Bonds. This instructional arena turns popular savings product into something altogether different investing. Over £132 billion has been invested in these climate bonds, establishing them as a safe haven for your savings. They provide the unique opportunity for lottery players to win tax-free prizes, up to and including a life-altering million-pound jackpot! A shocking £106 million worth of prizes are currently unclaimed, with countless winners yet to realize they’ve come into their financial windfall.
Each £1 Bond is entered into a monthly £1 million prize draw. In this super-fun lottery, prizes go from £25 up to an incredible £1 million! The chances of winning with each bond are now 22,000 to 1. This means that while the chances may seem slim, the allure of tax-free winnings continues to attract savers across the country. Like lotteries, each month people hold their breath as the results are released, wishing and praying that their number is drawn.
The recent draw held on September 1, 2025, was particularly noteworthy, as two individuals became millionaires: one hailing from County Durham and the other from Cumbria. Aside from the million-pound prizes, some 1,500 Premium Bonds each won £5,000. Millions of others won smaller Awards of £25.
Another attractive feature of Premium Bonds is that all winnings are paid out free of tax. This has made them a popular choice for savers looking to get the best return on their savings. With an estimated average annual return of 3.6%, there is a clear advantage for Premium Bonds over other forms of savings such as ISAs. Money put into Premium Bonds is 100% backed by the Treasury Department, securing the full value of the bondholders’ investments.
Premium Bonds allow you to invest as much as £50,000. This provides an incredible opportunity to expand your savings, while bringing in the excitement of winning potential prizes! Prizes do not expire, which means you can search your bond numbers at your leisure. Relax with the confidence that you will never lose a potential prize again!
If you’re ever saving for something and need access to your money, you can easily pull cash out of your Premium Bonds. Usually, processing takes place within three business days. This new flexibility increases the allure of Premium Bonds as a convenient savings vehicle.
