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

Saver Total Won (July 2024 – June 2025) Effective Annual Return
Saver 1 £1,325 2.65%
Saver 2 £2,925 5.85%
Saver 3 £11,325 (including a £10k win) 22.65%

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!