- About 23 million people have Premium Bonds from NS&I
- The biggest myths range from old tires breaking down to Ernie not being random
- We see if there is any truth behind the myths
Over the decades, many myths have arisen surrounding the Premium Bonds prize draw. About 23 million savers have the most popular savings product in the country.
The bonds are tax-free and, unlike lottery draws, you never lose your original stake.
While a win is not guaranteed, the monthly prize money is equivalent to a 4.65 percent return (it drops to 4.4 percent as of March 2024 after a recent cut).
There are two coveted £1 million prizes every month, which is why many savers opt for Premium Bonds.
We look at some of the most popular myths about premium bonds and ask National Savings and Investments if there is any truth behind them.
Nearly 23 million savers call National Savings & Investments home for their next eggs. There are two prizes worth £1 million to be won in each monthly prize draw
Myth 1: Only new bonds win prizes
It has become a popular myth that new premium bonds have a greater chance of winning prizes than older bonds.
Some NS&I customers have even asked whether they should cash in their old Premium Bonds and buy new ones in the hope that they can win a prize.
Savings experts say the most important thing isn’t how long you’ve held the bond, but the number of bonds you hold, because increasing the amount you hold can increase your chances of winning a prize.
Premium Bond Winners
| Price | Area | Value of the bond |
| £1,000,000 | Warwickshire | £5,000 |
| £1,000,000 | Nottingham | £31,020 |
| £100,000 | Within London | £5,000 |
| £100,000 | Manchester | £1,950 |
| £100,000 | Buckinghamshire | £10,000 |
| £100,000 | West Yorkshire | £50,000 |
| £100,000 | South Scotland | £30,000 |
| £100,000 | Lincolnshire | £22,000 |
Even more winners from January 2024
The reason it appears that newer bonds are luckier than older ones is because more than 95 percent of eligible bonds have been purchased since the year 2000.
Although Premium Bonds have been around for over 60 years, this is why newer bonds seem to be winning more often.
A spokesperson for NS&I said: ‘Every £1 invested buys a unique bond number. Each issue has a separate and equal chance of winning a prize each month, and the more bonds you buy, the better your chances of winning.’
Myth 2: Certain areas are luckier than others when it comes to prices
One of the biggest myths about Premium Bonds is that areas in the South East are the luckiest when it comes to winning prizes.
Over the past 29 years, National Savings and Investments has created 512 Premium Bonds millionaires.
Of these, 28 £1 million jackpot winners are based in Surrey, 23 in Kent and 22 in Essex.
Our analysis shows that Surrey, Kent and Essex are responsible for 13 percent of all Premium Bonds jackpot winners since 1994.
NS&I emphasizes that if it appears that there are more prizes being won by bondholders in certain parts of the country, this is likely because there are more bondholders there compared to other parts of the UK.
The South East is home to most UK bondholders.
NS&I says: ‘If it appears that holders in one part of the country are winning more prizes, it may be because more bonds are held there than in other parts of Britain.’
Myth 3: You must have the maximum holding to win
The maximum holding for Premium Bonds is £50,000 and some NS&I customers are convinced that the only way to win a prize is to hold that many Premium Bonds.
In October, our analysis revealed that half of the top prizes of £1m, £100,000 and £50,000 Premium Bonds were won by those with the maximum holdings of £50,000.
Buying more bonds can certainly help increase your chances of winning a prize, but if you have a smaller holding, it is still very possible to win a prize.
The smallest company to ever win the jackpot was £17 and this winner was based in Newham, London. While 12 people won the £1 million jackpot prize with £1,000 or less, showing that small businesses can still win big.
NS&I said: ‘Over the three draws between August and October this year, more than 29,000 prizes were won by people with assets of £50 or less, including three who won valuable prizes of £10,000 or more.
‘In the most recent draw (December 2023), one of the jackpot winners from Essex has £14,600 in premium bonds.
‘In the November prize draw, one of the jackpot winners from West Mids owns £5,050 in premium bonds.
Myth 4: Ernie is not random
Ernie – which stands for Electronic Random Number Indicator Equipment – is the random number generator from NS&I. It is responsible for drawing more than five million prizes per month.
But some people believe that the way award winners are chosen is not as random as Ernie’s name suggests.
NS&I says: ‘Every month the Government Actuary (GAD) carries out an independent check to ensure that ERNIE’s output is random. GAD then issues a certificate confirming that there is no reason to believe the draw is not random.
‘We publish figures and award prizes when that certificate is issued by GAD at the end of each month.’