Each month’s draw and winning bonds are announced on the first business day of the month. Sometimes, this will be the first day of the month, while other times, due to a weekend or bank holiday, you may have to wait a little longer.
When do premium bonds become available?
If you own a Premium Bond, you’ll want to know when the monthly draw is made public so you can find out if you’ve won as soon as possible.
NS&I used to provide the numbers to media outlets the day before so that we could have them available for you first thing on the morning of the announcement, but now it sends them at different times on the morning of the announcement.
This is why most organizations, including ours, publish the big winners each month a little later than usual.
Most sites will have received the numbers and published them by 11 a.m. at the very latest, if you wanted to make a point to check in at that time (you can find our article here).
Take a look at our handy list of upcoming Premium Bond prize draw dates below to see which day each month you should check in to see if you’ve won in the most recent Premium Bond prize draw.
Will I be contacted if I’ve won?
You can expect a visit from someone from NS&I the day before the first working day of the month if you beat the odds and win one of the two £1 million monthly rewards.
As a result, ensure sure your contact information is up to date. If you’ve recently relocated, this section of the NS&I website can help you change your address.
It’s also worth checking if you have any unclaimed prizes with your name on them if your information has been out of date for a while.
Do you get an email from Premium Bonds if you win?
Cheques may not arrive until the end of the month through the mail. If you haven’t gotten your check by the end of the month, please contact us and we’ll send you one.
Premium Bonds reward cheques expire after three months for security reasons. Don’t worry if your check has expired; simply ask us for a replacement.
To avoid issues like these, you can have your wins sent directly to your bank account or reinvested into additional Bonds – both of these options are quick, easy, safe, and environmentally friendly ways to get your money.
When do premium bonds enter the draw after purchase?
Premium Bonds are eligible for the draw one full calendar month after they are purchased, according to NS&I. If you buy them in November, for example, they’ll be in every draw starting in January.
Is buying Premium Bonds in bulk better?
Q I have £27,000 in premium bonds that were issued in blocks of £2,000 and £1,000, and my winnings have been poor (£600 in the last three years).
Could you kindly tell me whether there is any evidence that holding one entire block rather than having them divided up as they are now would be better? I realize that if this is asked, it can be done, but I will forfeit one month of participation in the drawing.
A There are numerous theories. There is no evidence, however, that owning premium bonds in a single block increases your chances of winning. Otherwise, it would have become well known very quickly.
The R in ERNIE denotes a ‘random’ (Electronic Random Number Indicator Equipment) selection of the winning numbers, which has been the case since the inaugural draw in 1997. Each month, ERNIE is designed to select 2.5 million numbers, which are subsequently matched to 1 million eligible bonds (many of the numbers include bonds not yet sold or those which have been cashed in).
Since the introduction of the national lottery, premium bonds have grown in popularity to the point that total holdings are now about £25 billion, making the odds of winning the single £1 million top prize astronomical. The average payout is set at 3.2 percent net, but this covers all of the rewards given out, implying that the government is borrowing money at a low rate.
The fact that the earnings are tax-free on an investment where you can always get your money back is a major selling point. Unlike the lottery, which is a zero-sum game. You could sell your bonds and then buy them back to cover consecutive numbers. However, as you point out, this will cost you a month in the draw and will not increase your chances of winning. Don’t get too down on yourself. It appears that investors frequently receive nothing or very little for long periods of time before experiencing a run of excellent fortune.
Are there any disadvantages to Premium Bonds?
Since 1957, National Savings and Investments (NS&I) has marketed Premium Bonds. They are a risk-free option to save because NS&I is supported by HM Treasury and is part of the government.
Premium Bonds do not pay interest, but they do have a monthly prize draw with prizes ranging from £25 to £1 million.
Each bond costs £1 and includes a unique reference number that is used to enter the draw. That implies that for every pound you invest, you may be eligible to win a prize once a month (though it is highly unlikely).
Limitations
Premium Bonds are only available to those who are 16 years old or older. They can, however, be purchased on behalf of children, grandchildren, and great grandchildren and kept by an adult until the child reaches the age of sixteen.
Popularity
In 2008, premium bonds were a big issue. People were looking for a safer way to save during the financial crunch, and Premium Bonds, which are backed by the government, cannot lose their value. People were also drawn to the product because of the increased chance of winning more money.
There are presently 74 billion Premium Bonds in circulation, with approximately three million winning a prize each month.
Potential returns
Prizes range from £25 to £1 million, with lower-value awards being granted more frequently than higher-value prizes.
It’s vital to keep in mind that there’s no assurance that you’ll win anything. The monthly prize pool determines the “average rate of return,” which is now 1.4 percent.
It’s not as simple as assuming that if you buy Premium Bonds, you’ll get a 1.4 percent return. There are several factors that go into determining your exact chances of receiving prize money in that amount, but we estimate that you’ll need to invest roughly £20,000 in bonds to get close to the average return.
This calculator can be used to determine your chances of winning and potential profits.
Advantages and Disadvantages
Is it worthwhile to invest in Premium Bonds? It is entirely up to you to make that decision. Before making any decisions, it’s a good idea to consider all of the possibilities:
You will not see any rewards on your investments if your Bonds are not picked in the monthly prize draw.
Everyone enjoys the prospect of winning a large sum of money! The thrill of the prospect of winning £25 to £1 million for each Bond held is enough to entice some investors.
While the mathematics required to determine your chances of winning are complex, it is currently believed that the possibility of winning any prize is 1 in 24,500 for each individual Bond held.
Premium Bonds are backed by the government, hence there are no risks involved. In the worst-case situation, the bonds purchased are never selected as a reward, and the account balance remains unchanged.
Though the numerical value of your savings cannot be reduced unless you remove money, the real-term value can. Because the cost of living is rising, a stable investment value that does not rise will lose purchasing power over time.
Savings are always tax-free, which is one of the key benefits of bonds: higher-rate and even basic-rate taxpayers can invest substantial sums with no tax consequences.
Since the Personal Savings Allowance was introduced in 2016, most savers have seen no tax liability on their returns. That means savers can invest in vehicles that provide higher returns, and the lack of tax is no longer a distinguishing or compelling feature.
Premium Bonds are backed by the government’s promise to buy them back at the same price you paid for them. That means you can take your money out whenever you want and not worry about being penalized.
After the bonds have been held for a full prize cycle, they are entered into their first reward draw. This implies that Bonds purchased in March will be retained until the prize draw in May. Borrowing from your Premium Bonds could result in you missing out on a successful month.
What happens if you win a lot of money playing Premium Bonds?
It all depends on your financial circumstances and whether you prefer a prize draw to a traditional interest rate.
Many other bondholders, on the other hand, only receive tiny awards, and some do not receive anything at all.
We’ll compare the probability of winning Premium Bond awards to the lottery jackpot and savings accounts later in this post.
Your money is protected
Premium Bonds are offered by the government-owned National Savings and Investments (NS&I). This ensures that the money of clients is completely safe.
In contrast, bank and building society savings accounts are regulated by the Financial Services Compensation Scheme in the event that the provider goes bankrupt. The Financial Services Compensation Scheme (FSCS) only covers deposits up to £85,000 per individual and per institution.
However, because the maximum amount you can invest in Premium Bonds is £50,000, you might get the same level of security by putting that money in a high-street bank account.
They are tax-free
Because most of us have a personal savings allowance, I argue it is a benefit for certain people (PSA).
- Basic-rate taxpayers can earn interest on their savings of up to £1,000 per year without paying any tax.
- The PSA does not assist additional-rate taxpayers (those who pay the highest tax rate of 45 percent).
Because 95% of people do not pay any tax on their savings interest due to the allowance, Premium Bonds would provide no meaningful tax benefit.
It’s nevertheless comforting to know that if you do win a large sum of money, it will be tax-free.
You can reinvest
When you win with Premium Bonds, you get a form of compound interest effect.
You can have the money reinvested instead of taking cash (unless you already have the maximum £50,000).
Your winnings can be used to purchase more bonds. As a result, every £1 you invest buys a new bond, each of which has a unique number that is put into a monthly prize draw.
An easy access option
If you’re seeking for a temporary home for your money and will need access to it quickly, Premium Bonds could be a good option.
You might not want to put your money in a fixed-term savings account (where you lock your money up to get a greater interest rate) or invest in the stock market, which is more risky.
Premium Bonds can be withdrawn at any moment through the NS&I website (although it can take up to eight working days for the money to arrive in your bank account).
What are the disadvantages of Premium Bonds?
Premium Bonds are, in this sense, a sort of gambling, analogous to purchasing National Lottery tickets, rather than a savings or investment account.
It’s important to note, though, that just the “interest” is a gamble. The money you put into Premium Bonds is kept safe and secure.
How long do Premium Bonds go unclaimed?
Claims have no time limit, so you can go back as far as you like. Here’s how to get your hands on any prizes that haven’t been claimed yet: To begin your claim, call 08085 007 007 if you are a registered user of NS&I’s online and phone services.
What happens if you hit the jackpot on Premium Bonds?
However, if you win a prize and it is discovered that you have invested more than £50,000, your money may be confiscated.
If it is discovered that a Premium Bond investor has too many Bonds in their name, the excess will be paid in and reimbursed, minus any reward money.
If the prize money earned exceeds the value of the excess bonds held, NS&I will request the money back.
If the saver does not answer within two weeks, NS&I will deduct the funds from the customer’s savings.
According to This is Money, the greatest awards taken away from winners thus far have been £1,000 winnings from two savers.
According to the spokesman, this has happened in some circumstances where a customer invested in Premium Bonds despite having a small holding from when they were a child.
“Due to multiple spellings of their name or a missing date of birth on the oldest application, this may not have been identified. By the middle of 2018, we had communicated to all of these consumers “explains the spokeswoman
“We’re continuing to work on ensuring that numerous holdings in one name that have exceeded the maximum investment limit are consolidated so that a customer only has one Premium Bonds holding in their name as part of an ongoing process.”
How much money can you win on Premium Bonds?
Bonds and a chance to win a prize Every month, we pay out roughly $3 million in rewards to lucky Bond holders whose numbers are produced at random by ERNIE, our random-number generator. All prizes are tax-free and range from £25 to £1 million.