Premium Bonds: NS&I savings option can rack up £1m – prizes explained | Personal Finance | Finance
Prizes are split into three value bands – higher, medium, and lower – and a percentage share of the monthly prize fund is allocated to each of these bands.
A prize draw then takes place at the beginning of every month, in which the randomly generated bonds drawn are split into these three value brands.
Prizes in the higher band can range from £1million (only two of these can be won) to £5,000.
The medium band awards people the chance to win between £1,000 and £500, while the lower band, which is allocated 90 percent of the prize fund, ranges from winnings between £100 to £25.
The odds of winning any prize at all, however, sit at 24,500 to one for every £1 bond. And while every bond has an equal chance of winning, the more bonds people have, the higher their chances are of securing the jackpot.
