Premium bonds are a type of savings account offered by the UK government. They offer a chance to win tax-free prizes each month, and the odds of winning are better than with other types of savings accounts. To apply for premium bonds, you must be a UK resident and over 16 years old. You can apply online, by post, or by phone.
Premium bonds have been around since 1956, and they have become increasingly popular in recent years. In 2021, there were over 22 million premium bond holders, and the total value of premium bonds was over 116 billion. The popularity of premium bonds is likely due to the fact that they offer a chance to win tax-free prizes, and the odds of winning are better than with other types of savings accounts.