Premium Bonds and February 2025 Winners: Everything You Need to Know About it

Premium Bonds, issued by National Savings and Investments (NS&I), remain one of the most popular savings products in the UK. Instead of earning interest, bondholders have the chance to win tax-free cash prizes each month, ranging from £25 to an incredible £1 million. With millions of bondholders eagerly checking the results each month, February 2025 was another exciting draw with new millionaires announced.

What Are Premium Bonds?

Premium Bonds are a unique savings option where each £1 invested represents one entry into a monthly prize draw. Unlike traditional savings accounts, Premium Bonds do not earn interest. Instead, prizes are awarded at random, and winnings are tax-free. The key benefit is the security offered by NS&I, which is backed by the UK government, ensuring that your savings remain safe.

How Do Premium Bonds Work?

Each Premium Bond you hold gives you a unique bond number, which is entered into a monthly prize draw. The more bonds you own, the higher your chances of winning. However, unlike a traditional lottery, you never lose your initial investment. You can withdraw your money at any time, though it may take a few working days for the funds to be processed.

NS&I uses a computer system called ERNIE (Electronic Random Number Indicator Equipment) to randomly select the winning bond numbers. This system has been in place since Premium Bonds were first introduced in 1956, ensuring a fair and unbiased selection process.

February 2025 Premium Bonds Winners

The February 2025 Premium Bonds draw was highly anticipated, and once again, two lucky winners became millionaires. The jackpot-winning bonds were drawn from different regions:

• Winner from Kirklees: Holding bond number 150EN423722, purchased in January 2009.
• Winner from Sheffield: Holding bond number 513EP525664, acquired in September 2022.

These winners join the growing list of Premium Bonds millionaires, demonstrating that long-term bondholders and newer investors alike have a fair chance of winning big.

In addition to the two million-pound winners, February’s draw saw over 5.8 million other prizes distributed, ranging from £25 to £100,000, with a total payout exceeding £430 million.

How to Check If You’ve Won

There are several ways to check if you are one of the lucky Premium Bonds winners:

• Online Prize Checker: Visit the NS&I website and enter your holder’s number to view your winnings.
• NS&I Mobile App: Available on iOS and Android, the app allows users to check their winnings quickly and store multiple holder’s numbers.
• Amazon Alexa: By enabling the NS&I Premium Bonds skill, users can ask their voice assistant whether they’ve won.
• By Post: If you’ve won a high-value prize, NS&I will notify you via post.
• Email Notification: If you’ve registered for email alerts, NS&I will send notifications for your winnings.

Odds of Winning and Recent Changes

As of early 2025, the Premium Bonds prize fund interest rate stands at 4%, with an estimated 1 in 22,000 chance per bond of winning a prize. The rate was adjusted from 4.4% in December 2024, slightly reducing the total number of prizes available each month. However, the million-pound jackpot remains a key attraction for investors.

Breakdown of Prize Categories:

• 2 x £1,000,000 prizes
• 10 x £100,000 prizes
• 19 x £50,000 prizes
• 41 x £25,000 prizes
• 100 x £10,000 prizes
• 1,956 x £5,000 prizes
• Millions of prizes between £25 and £1,000

Unclaimed Premium Bonds Prizes

Many bondholders are unaware that they have unclaimed prizes. Currently, there are millions of pounds in unclaimed winnings, often due to outdated contact details or forgotten bond numbers. To ensure you don’t miss out:

• Keep your personal details updated with NS&I.
• Check your winnings regularly using the online prize checker or app.
• Consider opting for direct deposit so that any prizes are automatically paid into your account.

Are Premium Bonds a Good Investment?

Premium Bonds appeal to savers who prefer a risk-free way to store money with the added excitement of potential prizes. However, they may not be ideal for those looking for consistent returns, as the chances of winning can be unpredictable. The decision to invest should depend on personal financial goals and risk tolerance.

Key Advantages:

• Tax-free winnings.
• 100% security as NS&I is government-backed.
• Flexible withdrawals without penalties.
• The chance to win significant prizes.

Potential Disadvantages:

• No guaranteed returns.
• Low chances of winning for small bondholders.
• Prizes are random, meaning no consistent income.

Who Should Invest in Premium Bonds?

Premium Bonds can be an excellent choice for individuals who:

• Prefer a safe place to keep their money.
• Enjoy the excitement of potentially winning a prize.
• Have other sources of income and do not rely on interest earnings.
• Want a flexible savings option with easy withdrawals.

How to Buy Premium Bonds

Purchasing Premium Bonds is simple and can be done through various methods:

• Online: Register for an NS&I account and buy bonds using your debit card.
• Phone: Call NS&I’s customer service to purchase over the phone.
• Post: Send a completed application form with a cheque.
• Bank Transfer: Use your bank’s online banking to transfer funds directly to NS&I.

Conclusion

Premium Bonds remain a popular savings option for those who enjoy the thrill of winning while keeping their money safe. With two new millionaires announced in February 2025, the excitement continues. Whether you’re an existing bondholder or considering an investment, staying informed about changes to prize rates and checking your winnings regularly can help you make the most of your savings.