Family Cash:
Financial information for UK families

Familycash provides advice on tax credits, benefits, saving money, obtaining bargains and discounts, investing for your children and accessing cheap education

Premium Bonds

If you have money to invest you could buy Premium Bonds that don't pay interest but instead enter you into a monthly prize draw
What are Premium Bonds?

Premium Bonds are issued by National Savings and Investments (NS&I) and provide an alternative way of investing funds. Interest is not paid on Premium Bonds – instead your bonds are entered into a prize draw each month. All prizes are tax free.

How much can I invest in Premium Bonds?

You can invest a minimum of £100 and a maximum of £50,000. Bonds can be cashed in at any time without penalty.

Can I buy Premium Bonds for my grandchildren?

Parents, grandparents and even great grandparents can buy Premium Bonds, although the bond must be held on the child's behalf by parents or guardians until the child reaches the age of 16. Any prizes won before this time will be paid to the parent or guardian and only the parent or guardian can cash in bonds before the child reaches 16.

How much can I win with Premium Bonds?

There is a £1 million jackpot each month and many other monthly prizes of amounts ranging from £25 to £100,000.

How do I buy Premium Bonds?

You can apply online by visiting the NS&I website, or you can apply by telephone on 08085 007 007.

Where can I get more information about Premium Bonds?

More information about Premium Bonds can be obtained from NS&I. You may also be interested in Individual Savings Accounts and Children's Bonds.