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Media centre /
Press releasePREMIUM BOND PRIZES TO BREAK THROUGH ONE MILLION BARRIER IN SEPTEMBER20 May 2004For the first time ever, the number of prizes that lucky Premium Bond holders have a chance of winning will break through the 1 million barrier in the September 2004 draw. This follows today's announcement of a rise in the prize fund rate and a change in the odds from September. An estimated £56 million in prizes will be awarded, another record for the 47 year old draw which has given away £7 billion in 109 million prizes. As already announced, the tax-free prize fund rate increases from 2.4% to 2.6% on 1 June. It will rise gain to 2.8% on 1 September. More prizes will be awarded as the odds of winning a prize with any one single bond shorten from 30,000-1 to 27,500-1 in June and to 24,000-1 in September. From September 2004, with average luck, a Premium Bondholder could win the following number of prizes per year:-
The increase in the prize fund rate has mainly been driven by the increases in the Bank of England base rate. Whenever the prize fund rate increases or decreases, the change comes into effect three months later. When the base rate fell in 2003, the prize fund was not reduced by the corresponding base rate fall. National Savings and Investments forecasts that the number of prizes will rise to 1,000,000, an increase of 200,000 from May 2004.
The prize breakdown for the May draw and the estimated break down for the September draw is:-
The popularity of Premium Bonds in the last ten yearsThe amount invested in Premium Bonds has risen six fold in the last ten years. This increases the pool of money that can be then awarded in prizes. :-
How Premium Bonds workA minimum of £100 is invested which buys 100 different Bond numbers that are then entered into each monthly draw. A machine called ERNIE then randomly picks the winning numbers and prizes are issued to the winners. The prize fund is calculated by taking the equivalent of one month's interest, at the prize fund rate, on the total amount invested in Premium Bonds. Gill Cattanach, marketing director of NS&I, said, "Because of their continuing popularity and interest rate rises, we are able to give away over one million Premium Bond prizes for the first time this September. Premium Bonds certainly seem to suit the national character, the sense of fun of winning tax-free prizes and all with the peace of mind knowing that there is no risk of losing your money." ENDS Notes to Editors
NS&I media teamFor further details please contact:
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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