What is a Premium Bonds Calculator?
A Premium Bonds calculator helps investors estimate the potential winnings from their National Savings and Investments (NS&I) Premium Bonds. Unlike traditional savings accounts that pay interest, Premium Bonds enter holders into a monthly prize draw where they can win tax-free cash prizes.
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How to Use the Premium Bonds Calculator
To get a realistic expectation of your potential returns, enter the following details into the tool:
- Total Investment: The total value of the Premium Bonds you currently hold (up to the £50,000 limit).
- Holding Period: How long you plan to keep your bonds, which helps calculate the probability of winning over time.
Understanding Premium Bond Odds
It is important to remember that Premium Bonds do not guarantee a return. The “annual prize fund rate” is an average, meaning some people will win more while others may win nothing at all. This calculator uses the current NS&I odds to provide a statistical estimate of what an average holder might expect to win in a year.