
• Minimum investment: £25
• Maximum holding: £50,000
• Prize fund rate (equivalent “interest” pool): currently set by NS&I
• Odds: about 1 in 21,000 per £1 bond per month
If you need predictable monthly income, consider:
• Fixed rate savings accounts
• UK government gilts
• Dividend-paying funds
• General investment accounts with income portfolios
By comparison:
• Interest from savings accounts may be taxed, depending on your personal savings allowance.
• Bond coupons and dividends are taxable.
Premium Bonds are:
• Good for: savers who want safety, enjoy the prize draw element, or want a tax-free place for up to £50,000.
• Poor for: investors who need regular income, predictable growth, or long-term inflation protection.
• Fixed rate savings: Guaranteed returns for 1–5 years.
• Gilts and corporate bonds: Regular coupon payments.
• Bond ETFs: Diversified exposure to income-paying bonds.
• Dividend funds: Shares that distribute regular income.
1. Register online with NS&I.
2. Invest a minimum of £25.
3. Hold for a full month before entering the draw.
4. Prizes are drawn monthly and paid directly into your bank or reinvested.




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