Premium Bonds: How to ‘better your chances of winning’ as August prize draw looms

Premium Bonds have been popular for decades, after being launched in the 1950s by National Savings and Investments (NS&I). The option gives Britons a chance to both keep their money secure, while offering a chance to win £1million each month. The savings institution is backed by the Government, meaning all deposits are 100 percent protected should the worst happen.

While there is no interest rate on this account, there is a prize rate fund which goes towards funding the prizes offered to Britons each month.

This is currently set at one percent, but this can vary depending on the wider economic position of the country.

The Premium Bonds prize results are announced at the start of each month, and as the draw gets closer, many will want to know how to increase their chances of winning. 

Of course, this is a popular question among Britons who are looking to understand their holdings better.

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However, people can hold anywhere up to £50,000 if they so choose. 

One commonly held belief is that a person has to have the maximum holding in order to win anything at all.

In fact, this question was posed, with the website stating: “Does a client have to hold the maximum £50,000 to have any chance of winning?”

NS&I explained the details further, stating any person could win prizes, no matter how much they had invested in Premium Bonds.

At present the odds of winning are set at 34,500 to 1 – for every £1 Bod.

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All prizes issued by NS&I are tax-free, which can make the product even more of a draw for savers.

To decide the prize winners, the savings institution uses a tool known as ERNIE – or the Electronic Random Number Indicator Equipment.

The machine generates random numbers which are matched against eligible Bond numbers to determine who has won.

And as NS&I has explained, because of the random nature of the machine, every Bond, regardless of its length has a “separate and equal chance” of securing a prize. 



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