Do Only New Premium Bonds Win Prizes?

Not only are we celebrating the Queen and her Diamond Jubilee, commemorating her 60th year on the throne, we are also celebrating a milestone for ERNIE,the Premium Bonds winning numbers generator, which has just awarded his 250 millionth Premium Bonds prize.

Over the years a number of myths have developed around ERNIE and Premium Bonds. What are these myths though? We take a look:

• Myth 1: You have to have £30,000 invested to win the jackpot
  Whilst it is true to say that the more Bonds you hold, the better your chances of winning, jackpot winners have had different amounts invested over the years and there isn’t a need to have this level invested to win the jackpot
• Myth 2: You only prizes with new Bonds
  Every £1 Bond has an equal chance of winning and it doesn’t matter when it was bought. Bonds bought more recently may seem to win more often because there are more new Bonds than old
• Myth 3: Your old Bonds are left out of the draw
  Numbers aren’t entered into or stored in ERNIE so there’s no way that any Bonds can be left out of the draw
• Myth 4: Only Bonds from the South East win prizes
  It may seem that more prizes are won by holders in the South East, but that’s simply because there are more Bonds held in this area compared with the rest of the UK
• Myth 5: The more people that buy Bonds, the more my chances of winning are reduced
  This is not the case as the prize fund for each draw is a month’s interest on all eligible Bonds in the draw, so the more Bonds sold, the bigger the prize fund.

Are you missing out on your Premium Bond prizes?

Many people miss out on their winnings as they mislay their prizes or don’t let NS&I know when they change address. You can 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.

Since ERNIE introduced the £1 million jackpot prize in 1994, 269 Premium Bonds millionaires have been created – 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 – won by a man living in London with bond number 182ZL983391.

NS&I’s ‘Agent Million’, who each month delivers the good news 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!”

Moneyhighstreet comments: “Premium Bonds provide a secure place for your savings – and some appealing prizes – but as savers continue to feel the bite of inflation, for some higher rates are taking precedence over safety.

“Not only are some new savings accounts offering higher rates, but many are offering bonus rates on top of their usual rate for a fixed period to attract new customers.

“To find the best rates for your savings, start by comparing both savings accounts and cash ISAs online.”