Premium Bonds ‘not guaranteed return’ says expert
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
With the latest announcement date only a week away, many Britons will be looking for further guidance on how to boost their chances of winning the jackpot prize. The winners of November’s prize draw will be announced next Monday on November 1, 2021. For those looking to take home the prize draw, National Savings and Investment (NS&I) has outlined how Britons can improve their odds of winning the most amount of money possible.
Currently, the odds of a bond holder winning the £1million jackpot prize draw in Premium Bonds is 34,500 to one – for every individual £1 bond.
Bond winners are chosen by NS&I’s Electronic Random Number Indicator Equipment, otherwise known as ERNIE.
Through the NS&I’s Frequently Asked Questions (FAQ) page on its website, the financial body offers some sage insight as to how people can boost their chances of winning.
According to NS&I, one of the most commonly asked questions on Premium Bonds is whether bonds which are purchased close to the prize draw are more likely to win.
This question has been asked due to the majority of winning bonds being winning numbers bought since the year 2000, despite the prize lottery dating back to the 1950s.
In response to this question, the NS&I replied: “Each £1 Bond number has an equal chance of winning, regardless of when or where it was bought.
“Over 95 percent of eligible Premium Bonds have been bought since the year 2000.
“So even though Premium Bonds have been on sale for over 60 years, this is why newer Bonds seem to win more frequently.
“When ERNIE randomly generates winners, it doesn’t store any numbers, so there’s no way any Bonds can be left out.
“In 2004, the £1million jackpot was won by a customer with only a £17 holding, who bought them in 1959.”
Premium Bonds are savings accounts which have been popular with many Britons across the country since their initial launch in the 1950s.
Any deposits made with Premium Bonds are 100 percent protected from any potential harm or fraud as NS&I is a Government supported institution.
Through this savings account, bond holders are able to withdraw and deposit money whenever they want, however interest is determined by a monthly prize draw.
The largest amounts someone can win through Premium Bonds is either £1million, £100,000, £50,000 or £25,000.
Currently, the annual prize draw rate for Premium Bonds stands at one percent, but this is variable, meaning it could be changed by NS&I.
At the beginning of each month, NS&I announces the names of the lucky Premium Bonds winners for that period.
Last month, two bond holders took home the £1million jackpot. The first winner was based in South Gloucestershire, with a total holding of £49,994.
Their winning bond number was 433SN401366 and it was bought in January 2021, with £2,000 being invested overall.
The second winner was a man from Surrey who had a total holding of £50,000.
His winning number was 436WJ503244 and the bond was bought in February 2021 with an investment of £50,000.
Before purchasing any bonds, savers must be aware that their holdings will only become eligible for the prize lottery after a full month has passed from the initial purchase.
For example, a saver who purchased Premium Bonds in October will not be eligible for November’s prize draw, but will be able to take part in December’s lottery.
Source: Read Full Article