Millions of savers across the UK are eagerly awaiting the results of the first Premium Bonds prize draw of the new year. The government-backed savings scheme, run by National Savings and Investments (NS&I), will once again create two new millionaires alongside hundreds of thousands of other cash prizes.
When is the January Premium Bonds Draw?
The crucial date for your diary is Friday, 2 January. This is when the monthly prize draw takes place, conducted by the famous random number generator, ERNIE (Electronic Random Number Indicator Equipment). The results are typically made available to the public on the following day, Saturday, 3 January.
Participants can then discover if they are among the lucky winners. The scheme continues to see massive participation, with 24 million people currently holding bonds, representing a total investment exceeding £127 billion.
Understanding Your Chances of Winning
While the dream of a life-changing £1 million prize captures the imagination, it's important to understand the realistic odds. Each £1 bond has a 22,000-to-one chance of winning a prize each month. The minimum investment is £25, and the maximum holding is £50,000 per person.
Unlike a traditional savings account, Premium Bonds do not pay interest. Instead, all funds are entered into the monthly prize draw, with prizes ranging from £25 to the top £1 million jackpot. The scheme is considered risk-free, as your initial investment is protected, but the returns are not guaranteed.
Financial analyst Martin Lewis has noted that if all winnings are averaged out, the effective 'interest rate' on Premium Bonds is around 4 per cent. However, he stresses that most individual savers will not see returns close to this figure, as the distribution is highly skewed by the larger prizes. Many standard savings accounts can offer more consistent, and sometimes higher, rates.
The prize fund distribution is adjusted monthly. Based on the previous January's data, the prize structure included:
- 2 x £1,000,000 prizes
- 82 x £100,000 prizes
- 163 x £50,000 prizes
- Over 1.8 million prizes of £100, £50, and £25
How to Check if You Have Won a Prize
Checking your bonds is a straightforward process. From Saturday, 3 January, you can visit the official NS&I website and use their online prize checker. You will need to enter your unique Premium Bonds holder's number.
For convenience on the move, NS&I also offers a dedicated mobile app, available for both iOS and Android devices. The app allows you to check results, manage your holdings, and even have prizes paid directly into your bank account.
Winners are also notified by post if they have not registered for online updates. All prizes are tax-free and can be automatically reinvested into more bonds if you choose, keeping you in the running for future draws.
