NS&I & Premium Bonds in the UK
NS&I is backed by HM Treasury, so 100% of your money is secure with no upper protection limit. Premium Bonds don't pay interest: each £1 bond enters a monthly prize draw; the "prize fund rate" is an average, and many holders win less or nothing.
Comparison
| Product | Rate / return | Cost | Conditions | Promo end | Protection | Risk | Verified | Link |
|---|---|---|---|---|---|---|---|---|
| NS&I – Premium Bonds | 4.35% annual prize fund rate (variable, average – not guaranteed); odds 21,000 to 1 per £1 bond | No fees | Buy from £25 up to £50,000; age 16+ with UK bank account. Prizes free of UK Income Tax and CGT. | n/a | 100% backed by HM Treasury | low Capital secure; returns depend on luck | ✅ official source for NS&I – Premium Bonds |
Order: as collected, not a sponsored ranking. "Pending verification" values could not be confirmed on the official website and must not be used to decide. Sources: "official source" link in each row · how we read protection.
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Frequently asked questions
Is the prize fund rate what I will earn?
No. It is the average rate across all bonds; your result depends on luck and can be zero.
Are prizes taxed?
Premium Bonds prizes are free of UK Income Tax and Capital Gains Tax (source: NS&I).