Millions of savers across the UK are awaiting the results of the first Premium Bonds prize draw of the year, with two lucky holders set to become millionaires. The government-backed savings scheme, run by National Savings and Investments (NS&I), will conduct its monthly random number generation on Friday 2 January.
What Are Premium Bonds and How Do They Work?
Premium Bonds represent a unique, risk-free savings product where your money is entered into a monthly prize draw instead of earning traditional interest. Over 24 million people currently participate, with more than £127 billion invested in the scheme. Each £1 bond has a 22,000-to-one chance of winning a prize each month, with investments ranging from the £25 minimum to the £50,000 maximum holding.
The prizes are selected by a computer known as Ernie (Electronic Random Number Indicator Equipment). This month's results will be published by NS&I on Saturday 3 January, the day after the draw takes place.
What Are Your Actual Chances of Winning?
While the prospect of a life-changing win is enticing, the probability for individual bondholders remains low. Financial analyst Martin Lewis has calculated that the effective 'interest rate' across all Premium Bonds, when winnings are averaged out, stands at approximately 4 per cent. He cautions, however, that most savers will not see returns close to this figure, as the distribution is highly uneven.
Many standard savings accounts currently offer rates that exceed this average yield, providing a more consistent, albeit less exciting, return. The prize fund distribution varies slightly each month. The January 2025 draw, for example, created the following winners:
- £1 million x 2
- £100,000 x 82
- £50,000 x 163
- £25,000 x 328
- £10,000 x 818
- £5,000 x 1,636
- £1,000 x 17,163
- £500 x 51,489
- £100 x 1,987,844
- £50 x 1,987,844
- £25 x 1,803,871
How to Check If You Have Won a Prize
Checking your Premium Bonds numbers is a straightforward process. The quickest method is to use the official NS&I prize checker on their website, where you can enter your holder's number. For convenience on the move, savers can also download the official NS&I app, which provides instant access to draw results and account management.
Remember, prizes can be automatically reinvested or paid directly into your bank account, ensuring you never miss out on a win. With the draw date fast approaching, now is the perfect time to ensure your contact details are up to date with NS&I.
