Prize Bond Schedule 2025 from January to December [PDF]

They prize bond draws are held periodically, usually once a month or sometimes every 3 months. A computerized system picks the bonds randomly. The higher the number of prize bonds you have, the more chance you have of winning. Prizes have different tiers, both small amounts and grand prizes.

It’s a fun way to save money, and it’s exciting if you get a prize. However, prize bonds’ interest rate is lower than that of regular savings accounts. And may not be the best choice if you’re just trying to maximize investment returns. It’s also a great way to win prizes.

Prize bond winnings, unlike lottery winnings, are treated as interest income for tax purposes in most countries. While any amount won may be included in your income, if the income from the prize is substantial, you may also have to pay tax for that year. It very much depends on your country’s actual tax code.

Prize bonds are popular for special occasions and are often purchased specifically as gifts. The person who is interested will be invited to participate in the prize draws. Gift-givers should know if large winnings could trigger tax implications.

Prize bonds are generally regarded as safe investments because the government backs them. If you don’t win any prizes, you will get your original investment back when the bond matures. And so the risk of losing money is so low.

Most prize bond schemes permit bonds to be purchased in a minor’s name, usually by a parent or guardian. Some programs bear a minimum age cut-off. The amount of any winnings will be paid in the name of the minor.

Prize bonds are usually cashed with a waiting period of zero. However, once the bond matures (also called reaching its maturity, meaning 1 to 5 years, depending on the type of bond), the original investment can be withdrawn. But some bonds require you to wait a little before cashing out once you’ve won a prize.

Unfortunately, prize bonds issued in one country are no good for anyone outside that country. However, you might be able to buy bonds from bond issuers in another country, but they are based in your country of residence. Contact the issuer and check specific details.

The issuing government sells prize bonds in person at designated bond sellers and online. The details of the purchase of the prize bond schemes differ. Certain will require you to open an account before buying bonds.