NS&I explains why newer Premium Bonds ‘seem luckier’ despite odds meaning equal chance | Personal Finance | Finance


The odds of winning changed several months ago, on November 24 last year, coming into force for the December 2020 Premium Bonds prize draw. This was due to a cut to the annual prize fund rate.

The higher value the prize, the fewer the number of payouts up for grabs.

Ahead of the upcoming Premium Bonds prize draw, many may well be wondering whether they will win a prize.

NS&I has published the odds on its website, so Premium Bonds holders are aware of their chances.

The Government-backed savings provider has also published some other facts relating to the odds.

Among the queries some may have, NS&I addresses whether or not newer Premium Bonds are luckier.

The answer to this is no, but the savings provider explains why it could “seem” that this is the case.

“Every eligible £1 Bond has the same chance to win a prize in every monthly draw,” the website states.

“Newer Bonds seem luckier because over 95 percent of those currently held have been purchase since 2000.”

“While 2.4 percent of our Premium Bonds holders have the maximum £50,000 invested (as of April 2019), their total investment makes up 34.4 percent of the £80billion held in Premium Bonds, from which the prize fund is calculated.”

However, NS&I adds that while buying more Bonds could improve the chances of winning a prize, there isn’t a guarantee of what size that prize would be.

There is a minimum investment amount of £25 per person.

At the other end of the scale, there is also a maximum holding of £50,000 per person.

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