Premium bonds are a popular savings option as they give Britons the opportunity to potentially earn up to £ 1million each month. With interest rates so low these days, many are looking to premium bonds as a chance for some life-changing amount of money. Although premium bonds do not offer an interest rate to savers, the rate is used to fund the raffle each month.
Currently, NS&I has set this rate at one percent, but this varies depending on the UK’s broader economic position.
This matters all the more since NS&I is a savings institution backed by the government and backed by the Treasury.
However, this can be beneficial as it means that all funds deposited by NS&I are 100% secure, should the worst happen.
With the recently released June 2021 results for premium bonds, some will have woken up significantly richer.
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NS&I was quick to explain the details, saying any jackpot winner could invest a varying amount.
He even said a £ 1million winner only had £ 17 in premium bonds at the time.
But the key point to consider, he added, is that “the more bonds you hold, the better your chances of winning.”
However, NS&I also took the opportunity to dispel what it called a “popular myth” about how odds of winning work.
It is often suggested that holding premium bonds in a sequence can increase a person’s chances of winning.
The savings company, however, said that was in fact not true.
This is because the machine that is used to generate the numbers for the prize – ERNIE – does it at random.
These are then matched against the Eligible Bonds database in order to select the winners for each month.
NS&I added, “Since no bond is actually entered into ERNIE, it doesn’t know anything about the bonds themselves, for example whether the bond number is part of a sequence of numbers or not.
“Keeping them in order won’t make any difference. “
This Month’s Millionaires are two lucky women who bought their winning bonds at very different times.
The first millionaire is from Leicester and bought her winning Bond recently in July 2020.
The winning number turned out to be 404XK887196.
The second millionaire, from Cleveland, had to wait a little longer for her winnings, after purchasing the winning number in November 2008.
The Bond in question which won him the first prize was 147TV114992.