On November 1, 1965, the then-Lord Mayor of London, Alderman Sir Cuthbert Ackroyd, went to a Post Office and bought the first Premium Bond. He had no idea he was kicking off a savings revolution. More than £5 million in Bonds had been acquired by the end of the first day, and the nation’s hearts and minds had been captured.
The nation waited with bated breath seven months later, on June 1, 1957, for the first ever Premium Bonds reward draw. A total of 49 million Bonds were purchased prior to June 1, 1957, resulting in more than 23,142 prizes being paid out in the inaugural draw, with a top reward of £1,000.
At the time, the numbers surrounding the initial draw were mind-boggling the country had never seen anything quite like it. However, with Premium Bonds becoming more popular than ever, the numbers pale in comparison to the most recent prize draw. Since the inception of Premium Bonds:
- The jackpot has grown by 99,900 percent to £1,000,000, up from $1,000 when Premium Bonds were first introduced.
- The number of Bonds eligible has climbed by almost 230,000 percent from the initial draw, when roughly 49 million Bonds were eligible. This number is currently 113,081,411,333. Since ERNIE’s 60th birthday, when the number of qualifying Bonds was 64,057,711,818, the total has nearly doubled. When Premium Bonds turned 50 in November 2006, there were 32,329,928,097 qualifying Bonds.
- There are now 141 times as many prizes as there were in the first draw, which saw 23,142 rewards distributed. NS&I handed out 3,277,723 prizes in the most recent draw. Customers’ behavior has also altered, with nearly 9 out of 10 awards either being deposited straight into customers’ bank accounts or automatically reinvested into additional Premium Bonds each month.
- The prize pool is more than 97 times larger than the first draw, which had a prize pool of £969,750. NS&I gave out £94,234,500 in tax-free prize money in the most recent draw.
- Premium Bonds are currently held by nearly four times as many people as they were before the first draw – there were 6 million Premium Bond holders before the first draw, compared to 21.1 million now.
- Customers could deposit a maximum of £500 in Premium Bonds in November 1956, which was 100 times more than they could in November 1956. The maximum investment limit has continuously increased over time and is presently £50,000.
- 394,007 Bonds purchased prior to the first draw are still eligible 394,007 Bonds out of almost 64 million purchased prior to the first draw were still active in October 2021. These Bonds had won a total of 103 prizes worth £2,600 in 2021 up until the October 2021 Premium Bonds draw.
- Bond number 200VB673507 is one of the luckiest on record, having won four £25 rewards between July 2017 and March 2019. It was acquired in January 2013 and belonged to a Premium Bonds holder from the West Midlands.
ERNIE, the machine that generates numbers for the monthly prize draws, has been incredibly busy throughout the years. It is now in its fifth generation. Except for Rutland, the UK’s smallest county, the random number generator selected jackpot winners from every county in England. ERNIE has done the following since the initial draw in June 1957:
- ERNIE has completed 774 drawings, with the November 2021 Premium Bonds prize draw being the 774th Premium Bonds prize draw for the company.
- ERNIE has drawn over 538 million winning Bond numbers with only 23,142 rewards in the initial draw and has had to significantly increase his productivity in succeeding years, with several versions of the machine built to keep up with demand. In comparison to the more than two days it took to conduct the first ever draw, it now takes an average of 13 minutes to complete a draw.
- ERNIE has been responsible for the distribution of more than £22.1 billion in prize money to Premium Bonds winners in 773 draws.
- ERNIE has ensured that Agent Million has been kept busy travelling the length and breadth of the county, as well as internationally, since the £1 million jackpot award was announced in April 1994. ERNIE’s 469th and 470th millionaires will be announced in November.
Premium Bonds have grown in size and scope over the previous 65 years, with the number of eligible Bonds reaching an all-time high. Premium Bonds were dubbed a “squalid raffle” by Harold Wilson, the Shadow Chancellor at the time of their introduction. However, the way they’ve captivated the imaginations of several generations demonstrates that they’ve become a British icon beloved not just in the United Kingdom, but around the world.
NS&I Retail Director Jill Waters said: “Premium Bonds are still one of the nation’s favorite savings products 65 years after they initially went on sale, which is a monument to their popularity and enduring appeal.
Premium Bonds are about more than just the £1 million jackpot wins; each month, over 3.2 million other tax-free prizes are distributed, providing joy to people all throughout the country.
“Premium Bonds are a fun way to save and are more popular than ever, with millions of people receiving billions of pounds in payments over the years. Premium Bonds have the power to surprise and excite each month, regardless of whether you have £25 or £50,000 invested, while also embracing technology and providing peace of mind that any money deposited is 100 percent secure.”
Premium Bonds are not just the UK’s most popular savings product, but they are also one of the most accessible. The minimum investment is £25 and youngsters can hold them. Parents, grandparents, aunts, uncles, and family friends can buy them for a child under the age of 16 and offer them the gift of saving.
People who believe they need to put in the most money to win need only look at a winner from the London Borough of Newham from July 2004. With a Bond purchased in February 1959 and a total holding value of just £17, the woman won the £1 million jackpot, demonstrating that the seemingly impossible is feasible when it comes to the magic of Premium Bonds.
- NS&I is one of the largest savings institutions in the UK, with 25 million customers and a variety of savings and investing options. Because NS&I is backed by HM Treasury, all products provide 100 percent capital security.
- The current yearly Premium Bonds prize fund rate is 1.00 percent, and the odds of each Bond number winning any prize are 34,500 to 1. The prize fund rate and the chances of winning are both variable and can vary at any time.
- The NS&I media team has photos of ERNIE 5, prior ERNIEs, and Premium Bonds, including the Premium Bonds app, in high-resolution jpeg format.
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.
What was the value of the first Premium bond prize?
On June 1, 1957, the first Premium Bond draw was held at Lytham St. Anne’s, near Blackpool, Lancashire. The jackpot was worth £1,000.
Which premium bond is the oldest?
The oldest prize, for £25 and won by a holder who currently has £100 in Premium Bonds, was awarded in May 1973. There are currently ten unclaimed £1,000 prizes in the county.
What is the procedure for redeeming old Premium Bonds?
Not a member yet? You don’t need to create an online profile to withdraw money from your or your child’s Premium Bonds. All you have to do is complete a little online form. Make sure you have access to your account information.
Please note that in order to withdraw or close the account, you must be the person responsible for the child’s Premium Bonds.
You can withdraw money from Premium Bonds while ensuring that particular Bonds remain in the draw by filling out a form online.
A cashing in form can also be downloaded, printed, and completed. Then send us your completed form along with the Bond certificates that need to be cashed in (if you have them).
How far back can Premium Bonds be claimed?
When someone wins a Premium Bonds prize, we notify them. However, the good news may not always arrive. This could be because you relocated and didn’t tell us, you altered part of your personal information, or our letter got lost in the mail.
Simply log in to examine your reward history, or use our prize checker to discover if you have any unclaimed prizes.
When did UK Premium Bonds first become popular?
In 1956, a code breaker at Bletchley Park invented the first ERNIE. Following this, on Budget Day, April 17, 1956, Harold Macmillan announced the launch of Premium Bonds, providing everyone with a new avenue to save. Since then, there have been five generations of ERNIE, each of which has become quicker and more powerful as technology has advanced.
What are some of the drawbacks of Premium Bonds?
You will not receive a return on your investment until you win a reward in the monthly prize draw.
Premium bonds aren’t for you if you’re looking for a sure thing. The odds of winning a prize based on each £1 bond are currently 34,500 to 1.
There’s a chance you’ll only get back a small portion of what you put in. And unless you’re extremely lucky and win big, your return is unlikely to stay up with inflation.
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.
Is there any value in premium savings bonds?
- Have a large sum of money to set aside (the more bonds you have, the bigger your chance of winning a prize)
- Interest on savings is taxed (and have already used up your annual cash ISA allowance)
- The concept of a prize draw appeals to me (you could win big, but you also may not win anything)
It all boils down to your personality. Do you get a nice feeling from the element of surprise? What if you didn’t win anything? How would you feel?
Premium Bonds were created by who?
Since at least the late 18th century, the term “premium bond” has been used in the English language to refer to a bond that pays no interest but allows you to enter a lottery.
In his Budget of April 17, 1956, Harold Macmillan, as Chancellor of the Exchequer, introduced the contemporary version of Premium Bonds to control inflation and encourage people to save. The Lord Mayor of London, Alderman Sir Cuthbert Ackroyd, purchased the first bond from the Postmaster General, Dr Charles Hill, for £1 on November 1, 1956, in front of the Royal Exchange in the City of London. The second was purchased by Lytham St Anne’s mayor, Councillor William Crook. The Premium Bonds office was located at St Annes-on-Sea, Lancashire, until 1978, when it was relocated to Blackpool.