Premium Bonds Calculator
Premium Bonds pay no interest — just monthly tax-free prizes. Current prize fund rate around 4.15% (2026, varies).
Updated May 2026, using HMRC 2026/27 rates and current ONS / gov.uk figures.
Premium Bond returns are random. The 'prize fund rate' is the average annual prize rate across all bonds — useful as an expected return but you may get more or less. Maximum holding £50,000 per person.
Worked examples
£50k holding at 4.15% expected: ~£2,075/yr in prizes (median is lower; mean is around this).
£10k holding: expected ~£415/yr.
Sources:
NS&I rates
· retrieved 2026-05-12.
Frequently asked questions
Are prizes tax-free?
Yes — UK income tax and CGT exempt.
What's the chance of winning?
Per £1 bond per month: ~1 in 21,000. Bigger holding = more entries.
Should I prefer Premium Bonds over a savings account?
If you're a higher-rate payer with savings income above £500 personal savings allowance: yes, often. Otherwise a flat-rate ISA usually beats Premium Bonds on expected return.