Premium Bonds Prize Calculator
Monthly Prize Breakdown
NS&I distributes the monthly prize fund across a range of prize values. The two £1 million jackpots are the headline prizes, but the vast majority of wins are smaller amounts. Here is the approximate prize distribution for February 2026:
How ERNIE Works
ERNIE — Electronic Random Number Indicator Equipment — is the random number generator that selects winning Premium Bond numbers each month. The current version is ERNIE 5, introduced by NS&I in 2019.
Unlike software-based pseudo-random number generators, ERNIE uses thermal noise from electronic components to generate truly random numbers. The randomness comes from the unpredictable quantum-level behaviour of electrons within transistors — making it a hardware random number generator rather than a mathematical algorithm.
ERNIE's randomness is independently certified by GCHQ (Government Communications Headquarters) each month before prizes are drawn. This certification confirms that the distribution of winning numbers is statistically fair and that no bond has any advantage over another, regardless of when it was purchased or how long it has been held.
ERNIE Through the Ages
- ERNIE 1 (1957): A valve-based machine the size of a small van; took days to complete a draw
- ERNIE 2 (1972): Transistor technology; completed draws in a few hours
- ERNIE 3 (1988): Microprocessor technology; draws completed overnight
- ERNIE 4 (2004): Could generate 2.8 million numbers per second
- ERNIE 5 (2019): Current version; generates 1 billion numbers per minute using photon-based randomness
NS&I Premium Bonds Key Facts
| Detail | Information |
|---|---|
| Issuer | NS&I (National Savings & Investments) — HM Treasury backed |
| Launched | 1 November 1956 by Harold Macmillan |
| Total bonds in issue | Approximately £125 billion |
| Number of bondholders | Over 22 million people |
| Prize fund rate (Feb 2026) | 4.40% AER |
| Odds per bond per month | 1 in 21,000 |
| Tax status | All prizes are tax-free |
| Government backed | Yes — 100% capital guarantee by HM Treasury |
| Minimum investment | £25 |
| Maximum investment | £50,000 |
Premium Bonds vs Savings Accounts
Whether Premium Bonds beat a regular savings account depends on your tax situation, holding size, and luck. Here is a structured comparison to help you decide:
| Factor | Premium Bonds | Easy-Access Savings |
|---|---|---|
| Return type | Prize-based (variable) | Interest (guaranteed) |
| Tax on returns | Tax-free | Taxable (above PSA) |
| Capital security | 100% HM Treasury | FSCS up to £85,000 |
| Typical rate (2026) | 4.40% equivalent | 4.00–4.80% AER |
| Access to funds | 1–3 days withdrawal | Instant to 30 days |
| Minimum | £25 | £1 (most accounts) |
| Maximum | £50,000 | Varies by account |
| Best for | Higher/additional rate taxpayers | Basic rate taxpayers |
The Personal Savings Allowance (PSA) allows basic rate taxpayers to earn £1,000 of interest tax-free annually, and higher rate taxpayers to earn £500 tax-free. Premium Bonds prizes do not count towards the PSA as they are not classified as interest — making them especially advantageous for higher and additional rate taxpayers who have used their PSA.
Frequently Asked Questions
What is the Premium Bonds prize fund rate in 2026?
The Premium Bonds prize fund rate is 4.40% AER as of February 2026. This is the annual equivalent rate that NS&I uses to calculate the total monthly prize fund. It does not mean every bondholder receives 4.40% — it represents the total prizes awarded divided by the total bonds in issue. Individual bondholders may win more, less, or nothing at all in any given month. NS&I adjusts the rate periodically in line with interest rate movements.
What are the odds of winning any Premium Bonds prize?
The odds of any individual £1 bond winning a prize in any given monthly draw are 1 in 21,000. This means if you hold £21,000 in Premium Bonds, you have a roughly 63% chance of winning at least one prize per month. If you hold the maximum £50,000, your probability of winning something each month is approximately 91%. The median (typical) outcome for most holdings will be winning a few £25 prizes per year.
What is the minimum and maximum Premium Bonds holding?
The minimum Premium Bonds holding is £25 and the maximum is £50,000 per person. Children can also hold Premium Bonds — parents and grandparents can buy them on behalf of children under 16. Each £1 invested is one bond, so a £25 minimum investment gives you 25 bond numbers. NS&I does not permit fractional bonds.
How many £1 million jackpot prizes are awarded per month?
NS&I awards exactly two £1 million jackpot prizes every month. These are drawn alongside all other prizes in the monthly ERNIE draw. The jackpot winners are contacted directly by NS&I, usually by post. Since Premium Bonds were launched in 1956, over 700 jackpot winners have been created. The odds of winning the jackpot with a single bond are approximately 1 in 50 billion per monthly draw.
Are Premium Bonds better than a savings account?
This depends heavily on your tax situation and the size of your holding. For higher and additional rate taxpayers who have exhausted their Personal Savings Allowance, Premium Bonds' tax-free prizes can be equivalent to earning 7–8% gross on a taxable savings account, making them very attractive. For basic rate taxpayers with holdings under £10,000, a competitive easy-access account at 4.50%+ may offer more predictable returns. The key advantage of Premium Bonds is that your capital is 100% secure and tax-free prizes give every win full value.
How does ERNIE select winning bond numbers?
ERNIE (Electronic Random Number Indicator Equipment) is NS&I's hardware random number generator. The current ERNIE 5 uses thermal and photon-based quantum noise from electronic components to generate truly random numbers, rather than mathematical pseudo-random algorithms. Each month, ERNIE generates random numbers until it has produced enough to cover the full prize fund. Generated numbers are checked against the database of eligible bonds — a bond must have been held for a complete calendar month before it qualifies for a draw. ERNIE's output is certified as statistically random by GCHQ before prizes are announced.
How long does it take to receive a Premium Bonds prize?
Prizes are automatically paid into your registered bank account on the 1st banking day of each month — you do not need to claim them. If you prefer, you can opt to receive a cheque or reinvest prizes as additional bonds (subject to the £50,000 maximum). You can check if you have won using the NS&I prize checker on their website, the NS&I app, or by registering for email and text prize alerts. Unclaimed prizes (for bondholders without registered bank accounts) are held securely by NS&I until claimed.