May 2025 Premium Bonds Draw Creates Two New UK Millionaires

Premium Bonds remain a popular savings option for over 24 million UK savers, offering monthly tax-free prize draws with jackpots up to £1 million, but the odds of winning have lengthened to 1 in 22,000 after the prize fund rate was cut to 3.8% from April 2025. While the average return is cited as 3.8%, experts caution that this figure is skewed by a small number of large prizes, with most savers experiencing a median return closer to 3.3%—and many winning nothing at all. About 10% of prizes are high-value (£5,000 and above), another 10% are mid-sized, and the vast majority (80%) are smaller amounts of £100, £50, or £25. Premium Bonds are considered particularly attractive for higher-rate taxpayers and those who have already maximized other tax-free savings options, as all winnings are tax-free. However, savers seeking consistent or inflation-beating returns may find better options elsewhere, as Premium Bonds are best suited for short-term capital preservation rather than long-term growth. Checking results is straightforward via the NS&I website or app, with new winners announced monthly.