Premium Bonds are widely used savings accounts which have been popular with many people across the country since its launch in the 1950s. Due to being a financial institution backed by the UK Government, any cash deposited into a Premium Bonds account is 100 percent protected from any harm or fraud. Through this savings account, Britons are able to deposit and withdraw their hard earned cash at their convenience.
The noticeable difference between a Premium Bonds account and a regular savings account is that interest is acquired through a monthly prize draw.
Those who have an account automatically take part in this competition, with the prizes someone can win ranging from £25 to £1million.
However, account holders need hold the bonds for a full month before they’re eligible to win the following month’s jackpot.
For example, if someone bought Premium Bonds in August, they will be eligible for October’s draw.
Presently, interest on Premium Bonds accounts stand at one percent, however this is variable, meaning it could change depending on the wider economy.
As part of the prize draw, winners of the Premium Bonds cash prizes are announced at the beginning over every month.
According to NS&I, the winners of October’s prize draw are set to be announced on October 2, 2021, which is in less than two weeks.
Savers are able to buy bonds worth at least £1 or more through Premium Bonds with each individual bond having an equal chance of winning the £1million prize.
NS&I outlines that the more someone buys Premium Bonds, the more their chances improve to take home some extra cash.
However, Britons looking to take advantage of this prize draw are encouraged not to invest and buy bonds outside of their financial means.
The minimum someone can pay into Premium Bonds is £25, while the maximum amount is £50,000.
Currently, the odds of someone winning a cash prize is 34,500 to one for every individual £1 Premium Bond.
The prize lottery is determined by a machine, which is known as the Electronic Random Number Indicator Equipment or ERNIE.
Only two lucky Premium Bonds winners usually take home the £1million jackpot through the prize draw.
On its website, the savings institution offers advice to potential Premium Bonds account holders about how they can improve their chances of winning, with many looking for tips ahead of October.
Through NS&I’s most commonly asked questions page, the British public are able to find answers to their queries.
One of the most commonly asked questions is whether bonds which are purchased close to the draw are more likely to win.
This is asked as the majority of winning Premium Bonds have been winning numbers bought since the turn of the millennium, despite the prize draw being much older than that.
In response to this query, the NS&I states: “Each £1 Bond number has an equal chance of winning, regardless of when or where it was bought.
“Over 95 percent of eligible Premium Bonds have been bought since the year 2000.
“So even though Premium Bonds have been on sale for over 60 years, this is why newer Bonds seem to win more frequently.
“When ERNIE randomly generates winners, it doesn’t store any numbers, so there’s no way any Bonds can be left out.
“In 2004, the £1million jackpot was won by a customer with only a £17 holding, who bought them in 1959.”
Savers are also reminded that all Premium Bonds winnings are tax-free and are encouraged to take advantage of the prize draw to earn cash and have a shot of winning the £1million jackpot.
Read More: Premium Bonds: NS&I explains why newer Bonds ‘win more frequently’ as October draw