Odds to win Premium Bond Jackpot Increase

15.07.2005 In August 2005 National Savings & Investments (NS&I) will introduce a second ₤1 million  prize for premium bonds. You can buy ₤1 bonds from the Post Office or from NS&I. The minimum you can bet is ₤100 and the maximum ₤30,000.Their main attractive is that they are a safe investment backed by the treasury. Every month, ERNIE (electronic random number equipment) selects the winning bond numbers of about 600,000 prizes. You can win between ₤50 to ₤100,000, or ₤1 million.

In August 2005 National Savings & Investments (NS&I) will introduce a second ₤1 million  prize for premium bonds. You can buy ₤1 bonds from the Post Office or from NS&I. The minimum you can bet is ₤100 and the maximum ₤30,000.Their main attractive is that they are a safe investment backed by the treasury. Every month, ERNIE (electronic random number equipment) selects the winning bond numbers of about 600,000 prizes. You can win between ₤50 to ₤100,000, or ₤1 million.
 
The first ₤1 million prize was introduced in 1994, and attracted ₤4 billion in investments which grew to be ₤26 billion today. Bonds cost ₤1 each and must be purchased by hundreds. Therefore the odds of winning the jackpot decreased from one out of four billion to one out of 26 billion.
 
Since the government introduced the first price in 1994, more money has been invested than in the previous 42 years. The success of the bond and the decline in the likelihood of winning made the government decide to add another prize. After eleven years, the value of the price fund has increased from ₤1.46 million to ₤ 72.4 million.
 
Premium bonds are an interest way of investing, and are commonly recommended as an essential part of a well balanced portfolio. Although they pay no interest, the money is kept safe and the prices earned are free of taxes. NS&I claims that if a person invests the maximum ₤30,000, over the life of the bonds an annual 3.25 per cent tax free return should be expected.
 
Bond purchasing has increased dramatically as a response to descending prices of shares and interest rates, and general market uncertainty. Today 23 million people own premium bonds. With the inclusion of the new jackpot, one out of 13 billion bonds will be a monthly ₤1 million winner. In order to be included in the August draw, bonds must be bought before the end of June. For more information check the NS&I website (http://www.nsandi.com/).