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Prize draw histories... |
The chances of a single bond winning a prize are carefully calculated to attract both investors and ordinary savers who want the fun of winning a prize, while also retaining their investment with 100% security.
Both the Annual Prize Fund Interest Rate and the Odds are varied from time to time as the prizes offered have to compete with other forms of 'gambling', such as Football Pools and UK Lotto.
Savings limits and expected revenues from the scheme are closely controlled by the Treasury. Major changes are implemented as set out in the Chancellor's Budgets.
The output of each draw is checked independently by the Government Actuary's Department (GAD). It uses four methods of testing - Frequency, Serial, Poker and Correlation - to make sure the output has followed no set patterns, because any set pattern would suggest a bias. If no such pattern is discernible then the draw is determined to be random. A certificate is issued by GAD to verify the randomness of the draw.
Limits, Draws and Prizes.
These are controlled by the Treasury as set out in the Chancellor's Budget.
Series A Bonds [For reference as an historical document]
This Bond is issued under the terms of the Prospectus relating to Bonds of Series A. The following particulars are for information only and shall not form part of the conditions of purchase:- This Bond is registered at the Premium Savings Bond Office, Lytham St.Anne's, Lancashire, in the name of the holder who may apply for repayment at any time by obtaining a form at a Post Office or Bank and forwarding it to the above address. This Bond first becomes eligible for a draw for prizes when it has been held for six months beginning on the first day of the month following its purchase. Thereafter, subject to note , it will remain eligible for subsequent draws which will be held monthly. On repayment of the Bond or the death of the holder it will cease to be eligible for the draw held during the following month or any subsequent month. On the death of the holder his personal representative may obtain at a Savings Bank Post Office the appropriate form (S.B.4) to claim repayment of this Bond. The maximum permissible holding of this Series is 500 unit Bonds (purchase price £500). Bonds held in excess of this number are ineligible for a draw. On changing name or permanent address the holder should immediately notify the address given in Note 1, quoting the serial numbers of all Bonds held. Leaflets giving fuller information, including details of prizes, may be obtained at Post Offices, Banks and National Savings Centres.
Parameters
A weekly jackpot prize of £25,000 (drawn on a Saturday) was introduced in September 1968 and the first winning bond was 5RS 662663. This weekly draw was scrapped in favour of a larger monthly draw and so a £1 million jackpot prize was introduced in April 1994 to compete with the football pools and to retain investors.
By the 21st century, ERNIE was as popular as ever with the maximum holding limit at £20,000, the minimum purchase £100 and the smallest prize drawn was £50. From May 2003, the maximum holding limit was increased to £30,000. At the same time the odds of a single bond winning a prize were lengthened to 30000 to 1. From September 2004, the odds changed to 24000 to 1. From June 2005, newly purchased Premium Bonds had 11 digits. The ERNIE Mk 4 generates 9,10, or 11 digits to include all valid bonds, old or new.
The maximum holding was increased on 1st June 2014 from £30,000 to £40,000.
From the August 2014 prize draw, the number of £1Million prizes was increased from one to two per draw. In August 2014 the odds were 26,000 to 1 and the Annual Prize Fund Rate was 1.35%
The maximum holding was increased on 1st June 2015 from £40,000 to £50,000.
Congratulations!
This is the type of flyer you would have seen if you were lucky enough to win a prize:
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"Congratulations! One of your Premium Bonds has won a prize." |
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"Congratulations! One of your Premium Bonds has won a prize." |
End of Paper Prizes
NS & I say..."From December 2020, we’re stopping prize payments by warrant (like a cheque). We’ll be doing this in phases, so by March 2021 we’ll no longer send any prizes through the post. This means you’ll need to let us know your bank details to carry on receiving any prizes you win."
£25 Prize
The lowest value prize, £25, was abolished in the last century (date to be checked), but was re-introduced during the 'Age of Austerity' following the UK Banking Crisis in 2008. This was to enable the prize fund to continue paying out a high value jackpot (maximum) prize, while also retaining a large spread of smaller prizes. However, with the effects of inflation, £25 is quite a derisory amount, given that the minimum bond purchase is £100.
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"In the current low interest rate environment, our customers have told us how important winning prizes regularly is to them. We've listened and made changes as a result - turn over to find out more." |
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From 1 April we have: |
Acknowledgements
Disclaimer: These pages are an unofficial review of ERNIE and Premium Bonds. Photos copyright Light Straw Archives, as marked. Other photos and images used with kind permission of National Savings and Investments (NS & I). With thanks to the Science Museum, NS & I, and BT Heritage.
If you have a query about money or bonds held in National Savings, please visit the National Savings and Investments site.
All logos and trade marks are the property of their respective owners and are used on the Light Straw site(s) for review only. Students and researchers are recommended to make their own independent enquiries as to the accuracy of the information contained therein.