Premium Bonds offer holders the chance to win money in a monthly prize draw — but what are the real odds of winning? National Savings and Investments (NS&I) Premium Bonds are government-backed savings you can put money into and withdraw when you want. Unlike other investments, where investors earn interest or a regular dividend income, bonds are entered into a monthly prize draw where people can win between £25 and £1m. The chances of all bonds winning are the same, regardless of when or where they were bought. Savers buy £1 bonds and each has an equal chance of winning, so the more you buy, the higher your chances. The closest thing Premium Bonds have to an interest rate is their annual prize rate, which stands at 4.4%. This means that for every £100 invested, £4.40 in prizes are awarded each year. Read more: Were you a winner in the September 2024 Premium Bonds draw? The rate is variable and can change depending on factors such as when the Bank of England base rate changes or when rates in the general savings market change. The interest rate describes the "average" payout, but it is just a "vague watermark", according to...