Ought to I promote my outdated Premium Bonds and buy new ones? – That is Cash

Ought to I promote my outdated Premium Bonds and buy new ones? – That is Cash

I’ve held a sizeable sum in Premium Bonds with Nationwide Financial savings and Investments for the most effective a part of 20 years. The returns I’ve had are modest – the odd tiny prize win right here and there.

I used to be questioning if I ought to promote my bonds and begin once more. It seems like newer numbers appear to be luckier.

For instance, I observed within the final draw that the 2 £1million jackpot winners each had bought the bonds in 2021. Is there any advantage of cashing out my outdated bonds to refresh them?

In January 2000, there were 13.5 billion Bonds eligible for the draw; in October 2021, the number of Bonds eligible for the draw was 113 billion, equating to a more than eight fold increase.

In January 2000, there were 13.5 billion Bonds eligible for the draw; in October 2021, the number of Bonds eligible for the draw was 113 billion, equating to a more than eight fold increase.

In January 2000, there have been 13.5 billion Bonds eligible for the draw; in October 2021, the variety of Bonds eligible for the draw was 113 billion, equating to a greater than eight fold improve.

Ed Magnus of That is Cash replies: With over 22 million individuals holding Premium Bonds throughout the nation there’s sure to be loads of others pondering this very query.

On this month’s Premium Bond draw as you level out, each the £1million prize profitable Bond numbers had been bought in January and February of this 12 months – whereas the draw has been round since 1956.

Wanting again over the previous 12 months’s winners will not ease individuals’s issues both.

Previously 12 months, practically half of the 24 £1million prizes had been received by Bond numbers bought both in 2020 or 2021.

Drilling additional into the statistics, 17 of the 24 Premium Bond millionaires of the previous 12 months bought their profitable Bond numbers over the previous 5 years.

Premium Bonds Winners

PrizeSpaceWorth of bond
£1,000,000South Gloucestershire£2,000
£1,000,000Surrey£50,000
£100,000Northumberland£5,000
£100,000Lincolnshire£2,500
£100,000Norfolk£30,000
£100,000Hertfordshire£50
£100,000West Sussex£49,990
£50,000Barnet£100

Extra October 2021 winners

View list of October 2021 winners

Nevertheless, the explanation it might appear that newer Premium Bonds win extra usually would possibly simply be as a result of there are extra of them within the month-to-month prize draw.

Since October 2016 the variety of eligible Premium Bonds has grown from roughly 63billion to 113billion suggesting that though the final word prize is stacked barely in favour of those that have not too long ago bought, there is not essentially any bias in the direction of newer Bond numbers.

Odds of profitable not less than one prize
Prize£1 bond holding
£1 million1 in 56.54 billion
£100,0001 in 22.62 billion
£50,0001 in 9423 million
£25,0001 in 5385 million
£10,0001 in 1037 million

The truth that 42 per cent of the most recent 24 Premium Bond millionaires bought their profitable bond previously two years is not that extraordinary in any respect.

In accordance with NS&I’s figures, 36.9 per cent of Premium Bonds now out there for the draw had been bought since 1 January 2020.

Not solely has there been elevated curiosity, however the quantity that may be held in them has additionally risen considerably.

The restrict elevated from £20,000 to £30,000 in 2003. This then went to £40,000 in 2014, and £50,000 in 2015.

Buy date of Bonds versus prizes allotted to these Bonds
Decade of funding% £1 Bonds in Sep 2021 draw% prizes paid in Sep 2021 draw
pre-20002.7%2.7%
2000-200912.zero%12.three%
2010-201948.5%50.2%
2020-now36.9%34.eight%

For somebody who has held the identical Premium Bonds for the most effective a part of 20 years it might look like your luck is out.

However this will really be as a result of your likelihood of profitable the final word money prize is reducing as extra Bond numbers are bought by others.

A staggering 97.three per cent of obtainable bonds have been bought since 1 January 2000 and 85.four per cent of bonds have been bought since 1 January 2010.

How are the numbers drawn?

The destiny of Premium Bond holders’ rests on an digital random quantity generator generally known as ERNIE 5.

In contrast to earlier variations which used thermal noise to provide random numbers, ERNIE 5 is powered by quantum know-how which makes use of mild.

The brand new know-how permits ERNIE 5 to generate the fortunate numbers for 535 million tax-free prizes price £22.1billion in all however 12 minutes – 42.5 instances quicker than its thermal predecessor.

NS&I declare each Bond quantity, whether or not it has eight, 9, 10 or 11 digits, has a separate and equal likelihood of profitable a prize, regardless of on when it was purchased.

We spoke to a member of the staff at NS&I to see if they may share additional mild on our reader’s query.

Why do the newer Premium Bonds look like luckier?

An NS&I spokesperson replies: Irrespective of when it was bought, every £1 Bond has an equal likelihood of profitable a prize in every month-to-month Premium Bonds prize draw.

The prospect of every £1 Bond profitable a prize doesn’t change if prospects maintain their Bonds for longer, with the chances at present mounted at 34,500 to 1 and the prize fund price at present at 1 per cent.

Since January 2000 and as much as October 2021, there have been 399 Premium Bonds millionaires.

Of those millionaires, 70 individuals bought their profitable Bond previous to January 2000.

The final time somebody received the £1million Premium Bonds jackpot with a Bond bought previous to January 2000 was October 2019 when a person from Essex received it with a Bond bought in August 1999 having had £four,000 invested in Premium Bonds.

The longest that somebody has ever held a Bond earlier than profitable the £1million jackpot is 16,587 days when, in July 2004, a girl from the London Borough of Newham in London received it with a holding price simply £17.

The profitable Bond was bought in February 1959.

The lady’s £17 can also be the smallest ever holding to scoop the £1million Premium Bonds jackpot.

In January 2000, there have been over 13.5billion Bonds eligible for the draw; in October 2021, the variety of Bonds eligible for the draw was over 113 billion – this equates to a greater than eight-fold improve.

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