£50,000 in Premium Bonds: What Could You Win in a Year?

Three Real-Life Examples Show Just How Random the Prizes Can Be

Premium Bonds remain a popular savings choice in the UK, even with today’s competitive savings rates. Unlike traditional savings accounts, they offer no guaranteed interest—just the chance to win tax-free prizes ranging from £25 to £1 million.

But what are the real chances of winning with £50,000 invested? We tracked three savers over a year to see how their luck compared.

How Premium Bonds Work

• No interest: Instead, your bonds enter a monthly prize draw.

• Prize rate: Currently 3.8% (as of April 2025), down from 4.4% in 2024.

• Average expected return: Around £2,065 per year on £50,000 (based on a 4.13% average prize rate).

• But results vary wildly—as our three case studies show.

Three Savers, Three Very Different Outcomes

Key Takeaways:

✅ Saver 1 had below-average luck—winning just £1,325 (2.65%).
✅ Saver 2 did well, beating the average with £2,925 (5.85%).
🎉 Saver 3 hit the jackpot with £11,325—but remove the £10k win, and their return drops to just 2.7%.

Why Are the Results So Different?

• Pure luck: Every £1 bond has the same chance of winning.

• No advantage for older bonds or regional bias—despite myths.

• More bonds = more entries—but no guarantee of matching the prize rate.

Should You Invest in Premium Bonds?

✔ Pros:

• Tax-free prizes (unlike savings interest).

• Chance of big wins (though rare).

• NS&I-backed, so 100% secure.

✖ Cons:

• No guaranteed return—you could win nothing.

• Lower average returns than top savings accounts.

• Prize rates can fall (as they did in 2025).

Final Verdict: Is It Worth It?

• If you like a gamble, Premium Bonds add excitement to saving.

• If you need reliable returns, a fixed-rate savings account may be better.

• With £50,000, you could win big—but most will get close to the prize rate (or less).

Would you take the chance? Let us know in the comments!