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 instant millionaires. The government-backed savings scheme, run by National Savings and Investments (NS&I), now involves a staggering 24 million people with over £127 billion invested.
When is the January Premium Bonds Draw?
The monthly prize draw conducted by the famous number generator, Ernie (Electronic Random Number Indicator Equipment), is scheduled for Friday, 2 January. Savers can discover if they have won a cash prize from the following day, Saturday, 3 January, when the results are officially published by NS&I.
Unlike traditional savings accounts, Premium Bonds do not pay interest. Instead, each £1 bond, with a minimum holding of £25 and a maximum of £50,000, is entered into a monthly lottery for tax-free prizes ranging from £25 to the life-changing £1 million top prize.
What Are Your Odds of Winning a Premium Bond Prize?
While the scheme is entirely risk-free—your initial investment is protected—the chance of any single £1 bond winning a prize is approximately 22,000 to 1. This means the majority of participants will not win each month, and their balance remains unchanged.
Financial analysis, including work by money expert Martin Lewis, suggests that when all winnings are averaged out, the effective 'interest rate' on Premium Bonds is around 4%. However, this is an average figure, and most savers will not see returns this high, with many standard savings accounts offering more consistent rates.
The prize fund distribution is adjusted monthly. Reflecting on the previous January's results gives an indication of the scale of prizes available:
- £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 for a win is straightforward. From Saturday, 3 January, bond holders can visit the official NS&I website and use the dedicated prize checker, entering their unique bond holder's number.
For convenience on the move, savers can also use the official NS&I app, available for smartphones and tablets, to get instant results. All prizes are paid directly into the winner's bank account or reinvested into more bonds, ensuring a seamless process for those fortunate enough to win.
