How to check if you've got Premium Bonds
There are currently £88.4m worth of unclaimed Premium Bond prizes, according to the latest NS&I figures (Oct 24), a staggering 2,459,320 prizes sitting neglected and forgotten about. When you read that, three questions should come to mind: Is any of that money mine? How do I find out? Should I be buying Premium Bonds?
If you’ve got £25 minimum to spare, Premium Bonds give you the chance to be randomly picked for a prize every month. The prizes are tax-free and range from £25 to £1m.
Since March 2024, the Premium Bonds prize fund has been cut from a 24-year high of 4.65% to 4.4%. From the December draw, the rate will be cut again from 4.4% to 4.15% , and the odds of winning will fall from 21,000 to one to 22,000 to one. But NS&I will make a further cut from January 2025, bringing the rate down to 4%, with no change in the odds.
Sarah Coles, head of personal finance, Hargreaves Lansdown, says:“You dread a Premium Bond prize rate cut for ages, and then two come along at once. Between November and January, the rate will have dropped from 4.4% to 4%. And most savers will get far less than this. It’s unlikely to put enthusiastic savers off the product, but it should make them think twice about the interest they’re missing out on elsewhere."
"We carefully review our savings rates in response to changes in the broader market. These adjustments help us meet our Net Financing target while balancing the interests of our savers, taxpayers and the wider financial services sector," says Andrew Westhead, NS&I Retail Director.
"Premium Bonds remain a popular choice for millions of savers, backed by the 100% government guarantee, with the January 2025 draw set to deliver over 5.8 million tax-free prizes worth more than £431 million," he says.
Should I buy Premium Bonds?
If you are thinking about buying Premium Bonds, it’s important to be aware of what’s involved and whether this is the right place for your money. Despite the average prize rate of 4.4% (dropping to 4% in January), there are no guarantees you’ll get anything like this, because the odds of a win are 21,000 to one (22,000 to 1 from December).
"Of course, the prize rate doesn’t reflect what you’ll make in these bonds, and because of the lumpy way that prizes are awarded, the average person with £1,000 in bonds will still win nothing in the average month," says Sarah Coles head of personal finance, Hargreaves Lansdown.
"The lengthening of the odds of a win should be food for thought for anyone who is holding money in these accounts and losing money after inflation. This could be the straw that breaks the camel’s back, and could be enough to persuade you to consider savings accounts instead," says Sarah.
"Some people prefer to use Premium Bonds for specific things – like keeping money that they plan to use to pay a tax bill later. Some use it for cash they'll need for planned expenses over the next few years, and others will keep their emergency fund in there. Saving reasonable sums in the bonds for relatively short periods could boost your chances of a win – without the risk of leaving your money in there so long that the buying power evaporates," says Sarah.
It’s also worth bearing in mind that your odds will change over time. The prize rate might fall again rather than rise back up. If you do keep money in Premium Bonds, it’s a good idea to watch on the rate to make sure you’re still happy with your choice.
Why are so many prizes unclaimed?
Let's face it, life's full of so much admin these days, that it's easy to lose track of things. You might have moved and forgotten to update your contact details, or been given Premium Bonds as a child and forgotten about them. Or, the letter might simply have got lost.
The good news is that if you've won anything and NS&I can't get hold of you, the money will sit and wait for you. NS&I keeps it indefinitely, so even if it’s years later, you can still claim. In 2004 a holder in Newham who had purchased £17 in Bonds all the way back in 1959 won the top prize of £1 million, and Agent Million - the NS&I employee who personally breaks the news to all the top winners - was able to knock on their door with news of their jackpot as NS&I had their address. Another reason why it's crucial to keep Premium Bonds updated with your current address!
How do I check for unclaimed Premium Bond prizes?
If you know your Premium Bond holder's number
If you know your Premium Bond holder’s number, you can go to the prize checker section on the NS&I website and log in to your account, or download the prize checker app - at the App store and on Google Play. If you own Amazon Alexa, there’s a Premium Bonds prize checker skill there too.
If you are one of the two monthly jackpot winners, Agent Million will visit you at your registered home address. So make sure your contact details are up to date. You can amend them online at nsandi.com.
If you don’t know your Premium Bond holder's number
If you don't know your Premium Bond holder's number but have an old letter from NS&I, you’ll find your NS&I number there. Use that, with your surname and password to log into NS&I online and find your holders number on the account details page.
Forgotten your Premium Bond details?
If you can’t find your holder’s number or account number, you can phone NS&I on 08085 007 007 or write and ask for a replacement bond record to be sent to you. Give as much detail as you can about your past addresses, where and when you bought the Premium Bonds and how much they might be worth.
Alternatively, you can use the NS&I Tracing Service or My Lost Account to track down your Premium Bond details.
Premium Bonds as a gift
Any adult can buy Premium Bonds for children 16 and under. So, whether you’re a grandparent, uncle, aunt, niece, godparent, next door neighbour or family friend, you can buy them as a gift online at nsandi.com/gift or by post. But you will need to nominate one of the child’s parents or guardians to look after the Bonds until the child turns 16.
How do Premium Bonds compare to savings accounts?
They aren’t really comparable. With Premium Bonds you might win a million, you might not. The nearest thing Premium Bonds have to an annual interest rate is their annual prize fund interest rate which means ‘on average’ the annual return is 4.4%. But this doesn’t mean your money is guaranteed to earn this in interest. It means the average pay out is 4.4% (eg for every £100 paid into premium bonds every year, £4.40 is paid out).
Moneysavingexpert’s Martin Lewis has an easier way of describing it: "Line up everyone with £1,000 worth of Premium Bonds in order of their year's winnings, and the person halfway along would have won... not a penny! In fact, you'd need to walk past 60% of the line until you hit the first £25 winner."
Interest rates on the best easy-access savings accounts are currently more than 5% so if you are looking for guaranteed interest, as opposed to a safe place to keep your money with the possibility of winning big, then Premium Bonds may not be for you. There is an element of luck and of course the more money you have in Premium Bonds the better your odds of winning something.
Can Premium Bonds be passed on?
Premium Bonds remain eligible to win a prize for 12 months after the holder has deceased. You can't pass Premium Bonds on, but the executor can cash them in to form a part of the deceased's estate. And they aren't inheritance tax-free.
Prizes won before the 12-month limit can still be claimed - there's no time limit on when you can claim (if you discover bonds much later). Here's what to do if a NS&I customer has died.
Premium Bonds might be for you if:
you want the chance to win £1m jackpot every month, and other tax-free prizes.
you want 100% security for your money (because NS&I is backed by HM Treasury).
if you have used up your personal savings allowance (PSA), and want to make the most of tax-free investment opportunities.
want to buy a money gift for a child.
Premium Bonds might not be for you if:
you want a regular income from the money.
you are looking for guaranteed returns.
are focused on earning interest on your money.
you want to invest jointly with someone else or in trust.
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