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.
What is the location of NS&I?
The company’s headquarters are in Pimlico, London, with offices in Blackpool, Glasgow, Birkenhead, and Durham. However, the company’s whole back office business is outsourced to Atos Global IT Solutions and Services, a French firm with a location in Chennai, India.
In 1999, NS&I outsourced its operations to Siemens Business Services; approximately 4,000 employees were transferred to Siemens, leaving 130 NS&I employees in charge of product design, management, and marketing, as well as managing the relationship with Siemens. The contract was better value than retaining the operations in-house, according to a National Audit Office audit from 2000, and other government departments could benefit from how this public-private partnership was procured and handled. In 2011, Atos purchased the Siemens business unit.
Many of the bank’s services were previously available through post offices, but in November 2011, it was announced that most products would only be available by phone, online, or mail, with Premium Bonds remaining the only product available through post offices. NS&I discontinued selling Premium Bonds through post offices on August 1, 2015, and became a totally direct business.
Where does Ernie Premium Bonds have its headquarters?
December’s Premium Bonds millionaires are from West Sussex and Lancashire, marking the first time since September 2016 that ERNIE has chosen a Premium Bonds jackpot winner from his home county.
The first Bond number picked was 306VK958372, which belonged to a West Sussex resident. The jackpot winner acquired the winning Bond in July 2017 with £46,000 in Premium Bonds. ERNIE from West Sussex selects them as the ninth millionaire.
The second Bond number was 437QD081540, and the winner is from ERNIE’s native county of Lancashire. The winner owns £14,725 in Premium Bonds, which they purchased in February 2021. They become Lancashire’s twelfth Premium Bonds millionaire.
Aside from the two jackpot winners, over 3.3 million additional prizes worth between £25 and £100,000 were paid out this month, and parents, grandparents, aunts, uncles, and family friends can present Premium Bonds to youngsters under the age of 16 this Christmas to help them develop a regular savings habit.
Adults can purchase Premium Bonds for children for as little as £25 on the NS&I website.
Customers can have their winnings sent straight to their bank accounts or reinvested into more Premium Bonds. Premium Bonds will be less likely to go unclaimed as a result of this. Nearly nine out of ten rewards are now paid in this manner, which is faster, easier, and more secure than getting them via check.
Customers can learn more about the advantages of having their rewards deposited directly into their bank accounts or automatically reinvested in new Premium Bonds by visiting this page.
NS&I Retail Director Jill Waters said: “Our Premium Bonds jackpot winners in West Sussex and Lancashire deserve a huge congratulations. ERNIE has gone back to his origins and chosen a winner from Lancashire, where he is based, a month after the 65th anniversary of Premium Bonds going on sale.
“With over 3.3 million other prizes to be distributed in December, Premium Bonds customers around the country may expect Christmas to arrive early. You can also offer Premium Bonds to children as a gift this Christmas, allowing them to be surprised and pleased each month while also encouraging them to start saving with one of the nation’s favorite savings products.”
A total of 3,331,069 prizes totaling £95,768,225 will be paid out in the December 2021 prize draw. The total number of Bond numbers eligible for the draw was 114,921,860,273. Since its inception in June 1957, ERNIE has awarded 545 million rewards totaling £22.4 billion.
- Premium Bonds for children under the age of 16 can be purchased by any adult. Premium Bonds have a minimum limit of £25, which applies to subsequent transactions as well. Customers should make sure that the child’s parent or guardian is okay with them buying Premium Bonds for them. NS&I may need to verify the identity and address of everyone listed on a customer’s application, and may request proof of this. Premium Bonds can be purchased here by those interested.
- 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.
What method is used to notify premium bond winners?
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.
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.
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.
How can I purchase UK government bonds starting in 2021?
Investing may be a risky business, and how you choose to invest will be determined by your risk appetite. Government bonds are generally thought to be a safer investment than stock market or business bond investments. UK government bonds, often known as gilts, can be purchased through UK stockbrokers, fund supermarkets, or the government’s Debt Management Office. Bonds are fixed-interest instruments designed to pay a consistent income that governments sell to raise funds.
What bank specialises in Premium Bonds?
And because Premium Bonds are managed by NS&I, which is backed by the Treasury rather than a bank, this capital is as safe as it gets.
Is NS&I as secure as a bank?
Premium Bonds, NS&I’s most popular product, are perhaps the first thing that comes to mind when you think of NS&I – or National Savings & Investments.
Savings and investments with NS&I are supported by the UK Treasury, ensuring that any money you put in is completely safe.
This could make NS&I a more appealing alternative for depositors with more money than the Financial Services Compensation Scheme can guarantee (FSCS).
It has over 25 million customers in the UK who save and invest with it, and it offers products online, over the phone, and by mail.
NS&I interest rates and returns
Although NS&I provides the highest level of savings protection, this does not guarantee that its products will provide you with the best returns on your investment.
To select the perfect product for your situation, compare savings accounts, Individual Savings Accounts (ISAs), and bonds.
NS&I provides a variety of tax-free and tax-deferred savings vehicles, some of which are only appropriate for certain age groups.
Taxable accounts
NS&I offers a variety of taxable savings alternatives, meaning you’ll have to pay income tax on your returns.
Although the interest is taxable in some accounts, it is paid without the tax being deducted. This means you’ll have to record the interest on your tax return each year and pay any tax payable to HMRC.
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.