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Make Money From Premium Bonds

Investing money in Premium Bonds can be a very safe and exciting way to make use of your savings. Instead of offering a boring rate of interest on your money, they instead allow you the chance to win big tax-free cash prizes in their monthly draws.

With Premium Bonds you gain prize-draw numbers for every £1 you invest. All of these numbers are entered into a monthly draw, and if your number is drawn out you will win a cash prize. The more numbers or draw entries that you have, the higher your chances are of winning a cash prize. Therefore the more money you are able to invest into Premium Bonds, the higher your chances are of winning money.

The minimum amount of money you can invest in Premium Bonds is £100 and the maximum amount of money you can invest is £30,000. The maximum amount set is to prevent people from having an unfair advantage of winning on the Premium Bonds.

Premium Bond Cash Prizes Available

In each monthly draw there are two major prizes of £1 million. There are also some other cash prizes to be won as well, here is the list of cash prizes in full:

Prize Band Prize Value
Higher value: £1 million
Medium value: £1,000
Lower value £100


The amount of cash prizes available depends on the amount of Premium Bonds that are invested at any one time. The more money that is invested in Premium Bonds the more cash prizes there will be available to win. This is because the amount of cash prizes available is dependant on the interest gained on all the Premium Bonds.

Your Chances Of Winning On The Premium Bonds

Your chances of winning one of the cash prizes in the Premium Bonds is dependant on the amount of Premium Bonds you own. If you invest a lot of money and have a lot of Premium Bonds then you will have a higher chance of winning a cash prize than someone who only invests the minimum amount, and thus purchasing fewer Premium Bonds.
According to the NSI website, the odds of winning per Premium Bond owned is around 21,000 to 1 but this figure is often changing.

Disadvantages Of Investing In Premium Bonds

The only real disadvantage of investing money in Premium Bonds is that your money is not protected against inflation. Inflation is basically the value of your money, and is not something that you are able to control (it is a combination of the interest rate and other factors).

This means that if you were to invest a lot of money into Premium Bonds and then a few years later the rate of inflation has increased, your money might be worth less. This is the only real disadvantage of investing your money in Premium Bonds.

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