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.
How frequently are Premium Bonds drawn?
NS&I Premium Bonds are a type of savings account that you can deposit money into (and withdraw at any time), with the interest rate determined by a monthly prize draw. You buy £1 bonds, and each one has an equal chance of winning, so the more you buy, the better.
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It’s also worth checking if you have any unclaimed prizes with your name on them if your information has been out of date for a while.
How many monthly premium bond awards are there?
We divide the awards into three value bands: greater, medium, and lower, and each band receives a percentage of the monthly prize fund.
Higher value band
Every month, we award two £1 million prizes. The remaining prize fund portion allotted to the higher value band is then divided equally among the remaining reward values. We begin by calculating the total number of £100,000 prizes. We carry over any balances that are less than half of the prize amount to the split for the £50,000 awards. Alternatively, if there is a balance of at least half the prize value, we grant an additional £100,000 prize. We accomplish this by deducting the shortfall from the £50,000 prize pool.
The numbers of other awards in this value bracket are then calculated in the same way, from highest to lowest value. Any surplus or shortage is added to or subtracted from the medium value range for computing the number of £5,000 prizes.
Medium value band
We determine the number of prizes based on the share of the prize cash allotted to this band, with one £1,000 reward for every three £500 prizes. Any surplus is transferred to the lower value band’s share.
Lower value band
The amount of lower-value prizes is calculated so that there are equal numbers of £100 and £50 prizes, and the total number of prizes (including £25 prizes) is equal to the number of eligible £1 Bond units divided by the odds.
Prize draw details
The table below displays the projected number of prizes of each value for the February 2022 draw, as well as the volume and value of the individual prizes for the January 2022 draw.
Do old premium bonds ever come out on top?
Is it still possible to use my old Premium Bonds? Yes. Your Bonds are still valid and will be included into our monthly prize draws as long as you haven’t cashed them in.
Is there anything negative about 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.
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.
How can you tell whether you’ve won a Premium Bond?
What to do if you’re not sure if you’ve won. On our website and in our prize checker app, you can use your holder’s number to check the status of your prize. Your holder’s number can be found on your Bond record or by logging onto your account.
Is it possible to cash in Premium Bonds at the post office?
After July, savers will no longer be able to purchase premium bonds in Post Office offices, according to National Savings & Investments.
Since 1956, the bonds have been sold over the counter, allowing savers to deposit money in a government-backed account in exchange for a chance to win up to £1 million every month rather than receiving interest.
The present contract with the Post Office, however, will not be renewed when it expires on July 31, 2015, due to shifting consumer demand and cost-cutting efforts, according to NS&I.
After that date, bonds can only be purchased directly from the government’s savings provider, via its website, phone, or mail, or by a regular standing order.
One out of every five premium bond sales takes place in a Post Office branch. Over the counter transactions accounted for 750,000 in 2014-15, while direct transactions accounted for 3.2 million. In the same time period, £3.9 billion in bonds were sold in post offices, accounting for a third of all sales by value.
Customers who have recently purchased premium bonds from a post office would be written to and notified of the cessation of over-the-counter sales, according to NS&I’s chief executive, Jane Platt.
She stated, ” “As our partnership with the Post Office comes to an end on July 31st, I’d want to express my gratitude for their support and service to our customers over the years, and I wish them continued success.
“The majority of our clients already purchase premium bonds through direct channels, so NS&I’s move to 100 percent direct sales is a natural next step. Given that these clients already manage and repay their premium bonds directly with us, it should be simple and natural for them.”
Customers have been unable to cash in bonds or make administrative adjustments at the post office since 2013, and have had to deal directly with NS&I for everything but the initial purchase, since 2013.
Despite revisions to premium bonds that cut the smallest reward paid out in half to £25, the savings lottery has remained popular with investors, with over 20 million individuals owning them. The maximum amount that can be stored in bonds has just been increased by £10,000 to £50,000 per person.
The conclusion of the NS&I contract, according to the National Federation of Subpostmasters, demonstrated the Post Office’s issues and the necessity to modernize.
It stated in a statement: “This is very upsetting news, especially for our elderly and more vulnerable clients who rely on subpostmasters for face-to-face assistance with these types of transactions.
“It’s a shame for Post Offices as well, but it’s not surprising. NS&I has made their position clear in recent years, and it is consistent with the government’s larger reluctance to support the Post Office in delivering front-line public services.”
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.
Where does the money for premium Bonds originate from?
Since 1956, the United Kingdom government has issued Premium Bonds, which are lottery bonds. The government’s National Savings and Investments Department currently issues it.
Premium Bonds work on the idea that instead of the stake being gambled, as in a traditional lottery, the lottery distributes the interest on the bonds. The bonds are entered into a monthly prize draw, and the government pledges to buy them back at their original price if they are requested.
The government contributes interest to the bond fund (1.00 percent per year since December 2020), which is used to offer tax-free prizes to bondholders whose numbers are drawn at random. ERNIE stands for Electronic Random Number Indicator Equipment, and it is the machine that generates the numbers. Prizes range from £25 to £1,000,000, and the odds of a £1 bond winning a prize in a particular month (since December 2020) are 34,500 to 1.
Bonds can be purchased at any time, but they must be kept for a full calendar month to be eligible for a prize.
A bond purchased in mid-May, for example, must be held for the entire month of June before becoming eligible for the July draw (and onwards). Bonds purchased with prize reinvestment are eligible for the following month’s draw right away.
Each month, numbers are drawn with an equal chance of winning until the bond is cashed. As of 2019, anyone can own up to £50,000 in bonds. Premium Bonds have had a minimum purchase price of £25. This has been the case from February 1, 2019. There are 109.29 billion qualifying Premium Bonds, each worth £1, as of June 2021.