Martin emphasised that Premium Bonds won't pay out much more on average than the interest on easy access or fixed rate savings accounts.
If you pay tax on your savings, and have average luck, Premium Bonds become a slightly better bet. Premium Bonds are a slightly better bet for those with larger amounts of savings, especially if you're a higher- or top-rate taxpayer.
Yes, however, each £1 bond can only have the chance to win one prize per month. They can win time and time again though. £25 = 25 x £1 bonds, and you then have 25 chances to win in each prize draw.
If the value of the premium bonds is under £5,000 and you have the premium bonds account details, then you may be able to withdraw the money online. If the investment is over £5,000 then you may need to supply a grant of representation (proof of probate) to National Savings & Investments.
Despite that, says Coles, people need to remember that the odds of a win are still 24,000-1, “so the average person with average luck will still win nothing”.
If you want instant access to your cash, have £50,000 to invest, and especially if you pay higher rates of tax they are good value, returning on average around 2pc a year tax-free. But it is a close-run thing as market rates from banks and building societies are rising rapidly. Premium Bonds work like this.
If you want a regular income, Premium Bonds may not be the best option for you - you may be better off looking at different types of investment or savings accounts, including isas. You'll also receive no interest, as the interest accrued on bonds goes towards the prize fund.
Are my old Premium Bonds still valid? Yes. As long as you haven't cashed your Bonds in, they're still valid and they're still being entered into our monthly prize draws.
Having your prizes paid straight into your bank account (or NS&I Direct Saver) is quick, easy and safe. If you win, we'll let you know the good news by email or text message. You'll then normally receive your prize money in your bank account by the 7th working day of the month.
Dealing with Premium Bonds after someone's death
NS&I does allow them to be held by the estate for one year after death and during this time they will still be entered into the prize draw each month. Any winnings will be sent by warrant, which is similar to a cheque, to the person entitled to claim the money.
While Cash ISAs and Premium Bonds are very low-risk, they are unlikely to offer high returns. If you're happy to take more risk for the possibility of better returns, then a Stocks and Shares ISA might be better for you.
One in a million
Our Agents Million have the important task of delivering the winning news in person to the two monthly jackpot winners. Since the first Premium Bonds millionaire in 1994, over 400 new millionaires have been paid a visit.
We pay out two £1 million jackpots each month.
For someone with 'average' luck, Premium Bonds currently offer potentially higher returns than some savings accounts. The Premium Bond prize rate rose to 3.00% this month (January), which is higher than the best easy access savings account rates, which only offer 2.86%, according to financial website Moneyfacts.co.uk.
2. NS&I announced on 27 September 2022 that the Premium Bonds prize fund rate would increase from 1.40% to 2.20%, with the odds changing from 24,500 to 1 to 24,000 to 1. The changes were effective from the October 2022 prize draw and more information can be found here . 3.
As of 2019, each person may own bonds up to £50,000. Since 1 February 2019, the minimum purchase amount for Premium Bonds has been £25. As of October 2022 there are over 119 billion eligible Premium Bonds, each having a value of £1.
NS&I will now start to phase out Premium Bonds prize warrants from Spring 2021, rather than December 2020, and will announce the date from which warrants will start to be phased out in due course.
That's because the annual prize fund rate on Premium Bonds - the government-backed savings bonds that pay a return via a monthly prize draw and which are held by 21 million Brits - has been increased from 1% to 1.4%.
You never need to worry about an unclaimed prize. We'll hold on to it until you get in touch with us. And there's no time limit to make your claim. Just log in to view your prize history, or use our prize checker to see if you have any prizes you don't know about yet.
The value of fixed income securities will fluctuate and, upon a sale, may be worth more or less than their original cost or maturity value. Bonds are subject to interest rate risk, call risk, reinvestment risk, liquidity risk, and credit risk of the issuer.
What are Premium Bonds. Premium Bonds are effectively savings accounts held with the government. Rather than getting interest back on your savings, you are entered into a draw with a top prize each month of £1 million.
Series I Savings Bonds
If you want to fend off inflation as well as earn an interest rate, check out Series I bonds. These safe investments are designed to protect your money from losing value due to inflation, since the Treasury adjusts your interest rate every six months to keep pace with rising prices.
Government bonds are generally the safest, while some corporate bonds are considered the most risky of the commonly known bond types. For investors, the biggest risks are credit risk and interest rate risk. Since bonds are debts, if the issuer fails to pay back their debt, the bond can default.