Do you have Premium Bonds? (Picture: Peter Dazeley/Getty Images)
If you’ve got money in premium bonds, then good news – you’ll be pleased to know that the odds of winning are currently at the best level they have been at for quite some time.
Premium Bonds are a popular investment option for many people, and understandably so.
Only last week, two lucky people became overnight millionaires in the August 2023 Premium Bonds draw.
With the odds of winning currently at their best level in 15 years, many Brits might be considering trying their luck.
So, how do Premium Bonds work, and what are the latest odds?
Here is what you need to know.
How do Premium Bonds work?
Investing in Premium Bonds is a unique way to save money and potentially win big prizes.
Unlike traditional savings accounts, the bonds offered by National Savings & Investments (NS&I) don’t pay interest.
Instead, the money you invest is entered into a monthly prize draw, with the chance to win tax-free cash prizes ranging from £25 to a whopping £1 million.
You can buy Premium Bonds with a minimum payment of £25 or pay as much as £50,000.
The NS&I online prize checker can be used to check premium bond holdings and prizes, as well as an app downloadable for iOS or Android devices.
To enter the next monthly prize draw, you must have held onto any bonds for a whole calendar month, but you can withdraw your money at any time with no charges or fees.
You can check Premium Bonds via the NS&I App. (Picture: NS&I/PA Wire)
What are the odds of winning premium bonds?
Obviously, the more bonds you have, the greater your chances of winning.
But what are the current odds? According to The Mirror, they are at their best level in 15 years, with the odds for the September 2023 draw moving from 22,000 to one to 21,000 to one – the best rate since April 2008.
This means your chances of winning a prize are higher than they have been in quite some time.
However, it’s important to remember that the odds are still relatively low, so it’s not exactly a guaranteed way to make money.
Despite this, Premium Bonds are a relatively secure investment option.
The UK government backs them, so your money is protected by HM Treasury (according to the Financial Services Compensation Scheme).
This means that even if the company managing the bonds were to go bust, your investment would still be safe.
MORE : Are you due a £100,000 Premium Bonds payout as prizes worth millions still unclaimed?
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