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History of Premium Bonds

• ERNIE FAQs

Premium Bonds were officially launched by Harold MacMillan, Chancellor of the Exchequer, in his 1956 budget. Savers were offered a chance to participate in a lottery for dividends (monthly prize draw). The maximum holding was £500.

There was much opposition to the introduction of Premium Bonds.  Labour spokesman , Harold Wilson, called Premium Bonds "a squalid raffle...a national demoralization."

Premium Bonds went on sale on 1 November 1956.   The first draw took place on 1 June 1957 and was started by the then Postmaster General, Ernest Marples.  Pictures from the first prize draw can be found in the photo library.

In 1957, ERNIE (Electronic Random Number Indicator Equipment), the machine which picks the winning numbers, took 2 1/2 days to carry out the first draw.  New models were required in 1973 and again in 1988 to cope with the increasing amount of Premium Bond numbers. The latest ERNIE was built in 2004, although the winning numbers are still generated in exactly the same way.

The £1 million jackpot was introduced in April 1994 and the maximum investment increased to £30,000 in 2003. 

To mark the 50th anniversary of Premium Bonds NS&I held two celebratory prize draws in December 2006 and June 2007, with five chances to win the £1 million jackpot.  For a more detailed history or further information contact the media team.

In April 2009 NS&I introduced a new £25 prize, to be distributed in the prize draw in addition to the existing prizes ranging from £50 to £1 million.