With Premium Bonds there is no risk to your capital – so the money you put in is totally safe – it is only the 'interest' that is a gamble. And as Premium Bonds are operated by NS&I which, rather than being a bank, is backed by the Treasury, this capital is as safe as it gets.

Can you lose money on Premium Bonds?

Can you lose money with Premium Bonds? No. NS&I is authorised and regulated by the Treasury, rather than a bank, so 100% of your money is protected. Even if you're an unlucky customer and never win anything, the amount you put into Premium Bonds remains safe.

Is there a downside to Premium Bonds?

Disadvantage: Initial delays:

That means that Bonds bought during March will be held back until the May prize draw. That means that, borrowing from your Premium Bonds could mean that you miss a winning month.