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Press release
PREMIUM BOND ANNIVERSARY ATTRACTS RECORD NUMBER OF CUSTOMERS
29 May 2007
- Over half a million new customers in just eight months
- Record sales in both October 2006, £2.2 billion, and April 2007, £1.3 billion
- 1 June marks 50 years since the first Premium Bond draw
- 50 years on are Premium Bonds still a good bet?
The 50th anniversary of Premium Bonds has caused a stir amongst savers, leading to record levels of investment. Since NS&I, which runs Premium Bonds, kicked off celebrations1 £6.6 billion has been invested, with £2.2 billion worth of Bonds sold in October 2006 alone – the highest monthly total to date.
Over half a million (525,000) people have bought their first Premium Bond during this period, taking the total number of customers to 23.7 million. With £36 billion now invested in Premium Bonds, a record number of Bonds will be in next week’s draw, which will pay out five £1 million jackpots instead of the usual two.
June’s draw is the second of NS&I’s two anniversary draws to celebrate 50 years of Premium Bonds and marks 50 years since ERNIE (Electronic Random Number Indicator Equipment) first went into action. It has the largest prize fund to date with almost 1.5 million prizes worth over £118 million. In December 2006 five £1 million jackpots were also paid out to mark 50 years since Premium Bonds first went on sale.
John Prout, NS&I’s sales director, said: “The last eight months have seen a huge surge of interest in Premium Bonds. Despite being launched 50 years ago, they continue to attract new customers: in just the last eight months, over half a million people have begun saving in Premium Bonds for the first time. The anniversary draws, combined with the ease of investing online have appealed to old and new customers alike.”
Are Premium Bonds still a good bet?
|
|
1st June 1957 |
1st June 2007 |
|
Top Prize |
£1,000 |
£1 million |
|
Total Value of Prizes |
£969,750 |
£118,058,850 |
|
Number of Prizes |
23,142 |
1,494,415 |
|
Number of Bonds in the draw |
49 million |
35.4 billion |
|
Number of Bond Holders |
circa 6 million |
23.7 million |
|
Odds of winning a prize |
2,095 -1 |
24,000-1 |
|
Prize Fund Rate |
4.0% tax-free* |
3.8% tax-free*
(3.95% for June only) |
|
Maximum Investment |
£500 |
£30,000 |
|
Minimum Investment |
£1 |
£100 |
|
Places to Buy |
Post Office®, Post |
Online, telephone, Post Office®,
Post, standing order,
automatic prize reinvestment |
|
Time Before Entered Into Draw |
Six months |
One month |
While prizes and odds have changed over the last 50 years, the concept behind Premium Bonds has remained the same: Premium Bonds offer investors 100% security, backed by HM Treasury, as well as the sense of fun that comes from winning tax-free* prizes.
50 years of prizes
The first Premium Bonds draw was held in June 1957. It took ERNIE 54 hours to complete the draw which paid out 23,142 prizes worth £969,750. The top prize was £1,000 and smallest £25. There were 49 million Bonds eligible for the first draw.
Since then, 154 million tax-free* prizes worth almost £9.8 billion have been paid out. Prizes now range from £50 to £1 million and it takes ERNIE only a few hours to generate the winning numbers. ERNIE has created 183 millionaires since the £1 million jackpot was introduced in 1994.
Premium Bonds Facts
- The previous record for Premium Bond sales was £1.1 billion sold in May 2003 when NS&I increased the maximum investment limit from £20,000 to £30,000.
- NS&I sold £8.2 billion worth of Premium Bonds in 2006/07, up from £7.8 billion in 2005/06.
- On 30th October 2006 a massive £244 million were sold – average daily sales in the last year were £25 million (May 2006 to April 2007)
- Premium Bonds can be bought online at www.nsandi.com, by telephone, by post and over the counter at Post Office® branches.
- There is currently £28 million in unclaimed prizes. There is no time limit on claiming prizes. Premium Bond investors can check to see if they have won by logging on to www.nsandi.com and using the Premium Bond prize checker.
ENDS
Notes to Editors
* All Premium Bond prizes are free of UK Income Tax and Capital Gains tax.
- NS&I launched the Premium Bond 50th celebrations at Proms in the Park events, which it sponsored, in September 2006. £6.6 billion worth of Premium Bonds have been sold between September 2006 and April 2007
- Pictures of ERNIE (including the new ERNIE 4 machine), Agent Million and celebrations of the 50th anniversary on 1 November 2006 are available in high-resolution jpeg format from the NS&I media team.
- Journalists requiring more information on National Savings and Investments (NS&I), including press releases, product information and digital images, please contact the NS&I media team.
- NS&I has a number of spokespeople available for interviews and our experienced radio team is available via our ISDN line: 020 7602 4522.
Media team
NS&I has a number of spokespeople available for interviews and our experienced radio team is available via our ISDN line: 020 7602 4522.
The numbers below are for media use only.
Customers
wishing to contact NS&I can find details here.
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