NS&I unveiled some details about the latest Premium Bonds prize winners last week, with two savers being announced as the December 2020 millionaires. This month marked a change in the odds from previous draws, due to rate reductions coming into force on November 24, and this was something which Martin Lewis addressed today.
“Each £1 Bond – you can put up to £50,000 in – is individually entered into a monthly prize draw and each £1 Bond has the same odds.
“So I know there are some people out there who think that newer Bonds have a better chance of winning that older Bonds. That is simply not true.”
Busting the myth, Martin went on to explain why some people may have this perception.
Actually, however, the minimum number of Bonds a person can hold has risen over the years.
The financial journalist and campaigner continued: “There are a lot more newer Bonds out there than there are older Bonds.
“So new Bonds do win more but because there are more of them, not because they have any special powers over older Bonds.”
Prior to the rate reduction on November 24, the annual Premium Bonds prize fund rate was 1.4 percent.
It has now reduced by 40 basis points to one percent.
As such, the odds of winning per £1 Bond number now stand at 34,500, having previously stood at 24,500 to one.
There are limits when it comes to holding Premium Bonds.
For instance, the minimum amount a person can have is £25.
There is also an upper limit – and this is a holding of £50,000 per person.
In December 2020, the value of the prize fund was £82,460,250.
The total number of prizes up for grabs was 2,868,182.
In comparison, November 2020 saw a prize fund of £113,712,650, and a total of 3,978,286 prizes.
The Emma Barnett Show airs weekdays on BBC Radio 5Live from 10am.
Published at Mon, 07 Dec 2020 15:10:42 +0000