Exchanging interest for tax-free prize shots
At MarsBlock Money Lab, I’m testing unconventional passive income ideas, and NS&I Premium Bonds are a wild card. Instead of earning interest, my money goes into a monthly prize draw – think £25 to £1 million, all tax-free, backed by HM Treasury. It’s a low-risk gamble that’s more fun than a savings account, and I’ve been seeing how it stacks up.
My NS&I Experiment
I’ve saved over £1,000 in NS&I Premium Bonds since April 2024, chasing those prize draws. So far, I’ve won £0 🙁 but I’ve got high hopes for the future. The odds are 22,000 to 1 per £1 bond, and while I haven’t hit the £1 million jackpot (yet!), my cash stays safe, ready to cash out anytime. Wins or not, it’s a steady experiment with zero risk to my initial investment.
How It Works
– Sign Up: Buy bonds at NS&I – £25 minimum, £50,000 max. Available in the UK only.
– Wait: Bonds enter the draw after one full month (e.g., buy Feb, draw Apr).
– Win: Prizes from £25 to £1M hit your account if luck’s on your side.
– Cash out: Withdraw anytime, no penalties – 100% safe.
Pros and Cons
– Pros: Risk-free (government-backed), tax-free prizes, fun factor.
– Cons: No guaranteed return, winnings vary (could be £0).
Try It Yourself
Head to NS&I to grab some Premium Bonds – no referral link here, just my MarsBlock-tested nudge. A fun little income experiment – park your money and see if ERNIE (the prize bot) picks you!
*Disclaimer: I’m not a financial adviser. NS&I Premium Bonds offer prizes, not interest – returns aren’t guaranteed, so weigh the odds. This is my personal experiment.*