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

Ought to I promote my previous 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 one of the best 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 looks like newer numbers appear to be luckier.

For instance, I seen within the final draw that the 2 £1million jackpot winners each had bought the bonds in 2021. Is there any good thing about cashing out my previous 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 certain to be loads of others pondering this very query.

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

Trying again over the previous 12 months’s winners will not ease individuals’s considerations both.

Previously 12 months, almost half of the 24 £1million prizes have 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 successful 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 could appear that newer Premium Bonds win extra typically may 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 last word prize is stacked barely in favour of those that have just lately bought, there is not essentially any bias in the direction of newer Bond numbers.

Odds of successful no 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 newest 24 Premium Bond millionaires bought their successful bond up to now two years is not that extraordinary in any respect.

Based on NS&I’s figures, 36.9 per cent of Premium Bonds now obtainable for the draw have 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 one of the best a part of 20 years it could appear to be your luck is out.

However this will really be as a result of your likelihood of successful the last word money prize is lowering 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 referred to as ERNIE 5.

In contrast to earlier variations which used thermal noise to supply 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 value £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 successful a prize, irrespective of on when it was purchased.

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

Why do the newer Premium Bonds seem like luckier?

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

The prospect of every £1 Bond successful a prize doesn’t change if prospects maintain their Bonds for longer, with the percentages at the moment mounted at 34,500 to 1 and the prize fund price at the moment 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 successful 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 successful 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 value simply £17.

The successful 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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