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Interest rates

We hold a prize draw every month with a £1 million jackpot. We set the size of each month’s prize fund by calculating one month’s interest on the total value of all eligible Bonds, at the annual rate shown below.

		Annual prize fund interest rate		Tax information
		1.50%		All prizes are tax-free

Odds of winning

The odds of winning are shown below. We calculate the number of prizes in each draw by dividing the total number of eligible Bond units by the odds.

				Odds
				24,000 to 1

Prizes

The table below shows the value of the individual prizes together with the number of prizes of each value for the October 2009 draw, as an example.

Prize draw in October 2009 (estimated)

		Prize band		Prize value		Number of prizes
		Higher value 6% of prize fund		£1 million		1
				£100,000		4
				£50,000		9
				£25,000		18
				£10,000		42
				£5,000		86
		Medium value 5% of prize fund		£1,000		1,048
				£500		3,144
		Lower value 89% of prize fund		£100		30,840
				£50		30,840
				£25		1,683,024
		Total value for October 2009		£52.4 million		1,749,056

Please see the terms and conditions for full details of how we distribute the prizes within each prize band.

Changes to Premium Bonds prize fund

The prize fund interest rate, prize values, odds of winning and the way we allocate the number of prizes of each value are all variable, so they may change from time to time. Please check this page regularly to keep up-to-date with any changes.