Premium Bonds ‘not guaranteed return’ says expert
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For October 2021, the Premium Bonds millionaires came from south Gloucestershire and Surrey. The first bond winner held £49,994 and bought the winning Bond in January 2021. In comparison, the second winner had £50,000 in Premiums Bonds and purchased her winnings in February 2021.
In reaction to the wins, Jill Waters, NS&I’s Retail Director, outlined how life-changing the Premium Bonds lottery can be for ordinary people. Ms Waters said: “We’re absolutely thrilled for our two winners from Gloucestershire and Surrey. They have both won a life-changing sum of money and we wish them all the best. Next month will mark 65 years since Premium Bonds went on sale and they are not just about the £1 million jackpot – each month, NS&I pays out more than 3.2 million other tax-free prizes ranging from £25 to £100,000.
“Of these prizes, almost nine in ten of them are paid directly into customers’ bank accounts or automatically reinvested into more Premium Bonds.” For this month’s prize draw, there were over 3.2 million other cash prizes paid out to winners over, ranging from £25 and £100,000. Five Britons won a prize of £100,000, while only 12 lucky winners took home £50,000. Over 113billion Bond numbers were eligible for the draw this month.
Through the frequently asked questions (FAQ) page on NS&I’s website, those who own Bonds are able to discover how they can improve their chances of winning the £1million jackpot. One of the most common questions issued to the banking institution is whether bonds which are bought close to the draw are more likely to win. This is a particular question of note as both of October’s jackpot winners purchased their Bonds earlier this year. On top of this, the majority of winning Premium Bonds have been winning numbers bought since the turn of the millennium, despite the prize draw being much older than that.
In response to this frequently asked query, 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.” Currently, the odds of the average Premium Bonds holder winning the £1milllion prize is 34,500 to 1 for every £1 bond. On his website, financial guru Martin Lewis explained why Britons should get Premium Bonds as a means of investment and saving cash. Mr Lewis said: “Premium Bonds are all about your mentality. They do protect your cash, so even if the returns don’t look like a good bet, it’s fine to put a non-significant portion of your money in them, provided you’re aware it’s more for fun than returns.”
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