The top five Premium Bonds myths: busted
- People may be missing out on prizes because of mislaying them or not informing NS&I if they have changed address
- ERNIE generates the 250 millionth Premium Bonds prize and £13.9 billion in prizes have been awarded since 1957
As the Queen commemorated her 60th year on the throne , another British institution reached a milestone: ERNIE, the Premium Bonds winning numbers generator, has just awarded his 250 millionth Premium Bonds prize.
With a national treasure in charge of one of the nation’s best-loved savings products it’s no surprise that myths have developed around ERNIE and Premium Bonds, but here we set the record straight!
Myth 1: You have to have £30,000 invested to win the jackpot
Jackpot winners have had different amounts invested over the years – one winner of the £1 million jackpot only had £17 in Premium Bonds! It is true though, that the more Bonds you hold, the better your chances of winning.
Myth 2: Only new Bonds win prizes
Each £1 Bond has an equal chance of winning, regardless of when or where it was bought. Several winners in June’s jackpot draw were bought in the early years that Premium Bonds were on sale. For example, in this month’s draw a prize of £1,000 was won with a Bond bought in 1970. Bonds bought more recently may seem to win more often because there are more new Bonds than old.
Myth 3: Old Bonds are left out of the draw
Winning numbers are generated randomly and then matched against eligible Bond numbers afterwards – numbers aren’t entered into or stored in ERNIE so there’s no way that any Bonds can be left out of the draw. Even Bonds bought as far back as 1956 may still be eligible for the draw.
Myth 4: Only Bonds from the South East win prizes
If it seems that more prizes are won by holders in the South East, that’s because there are more Bonds held there compared with the rest of the UK.
Myth 5: The more people that buy Bonds, the more my chances of winning are reduced
Not at all. The prize fund for each draw is a month’s interest on all eligible Bonds in the draw, so the more Bonds we sell, the bigger the prize fund.
In fact people may be missing out on prizes because of mislaying them or not informing NS&I if they have changed address. Minimise your chances of this by signing-up to manage your Premium Bonds online at nsandi.com, and to have any Premium Bonds prize wins paid directly into your bank account. It’s quick and easy and allows you to control your Bonds more effectively.
ERNIE has certainly been busy during his 55 years of service, having made people countrywide happy with over £13.9 billion worth of prizes distributed in a total of 660 draws. He has created 269 Premium Bonds millionaires, since his £1million jackpot prize was first introduced in 1994, a long way from the top prize of £1,000 in June 1957.
The landmark 250 millionth prize was in the June draw and was worth £25. It was won by a man living in London. The lucky winner’s bond number is 182ZL983391 and the winning bond was purchased in August 2011. The customer owns £25,750 worth of Premium Bonds in total.
Learn more interesting facts about Premium Bonds
NS&I’s ‘Agent Million’, responsible for personally delivering the good news each month to the million pound jackpot winner, said :
“I have the lucky job each month of waiting for ERNIE to generate the jackpot winning number before setting off to tell someone they have become a millionaire.
“It’s really good to see more and more savers registering to have their prizes paid directly into their bank accounts. But, don’t worry, if you are lucky enough to win a million, I will still deliver the good news in person!”
Notes to Editors
- Information on ERNIE’s 55th birthday celebrated last week can be found online
- Premium Bond holders can now sign up to manage their Premium Bonds by online or phone. To find out more savers just need to visitnsandi.com or call 0500 007 007.
- All Premium Bonds prizes are free of UK Income Tax and Capital Gains Tax
- Pictures of ERNIE (including the new ERNIE 4 machine), Agent Million and people buying Premium Bonds are available in high-resolution jpeg format from the NS&I media team.