An NS&I Premium Bonds holder secured March’s life-changing £1million jackpot prize from an investment for just £100. The bondholder from Cleveland, North Yorkshire, scooped the winnings this month from a bond purchased in May 2023.
Commenting on the win, Andrew Westhead, NS&I Retail Director, said: “It just shows that every £1 Bond has an equal chance of winning the £1 million jackpot. This is the second smallest holding ever to win the £1 million jackpot. The smallest holding ever to win was £17 back in July 2004, with the winning Bond purchased in 1959.”
Premium Bonds are a savings account offered by National Savings & Investments (NS&I), one of the largest savings institutions in the UK, backed by the Treasury. The accounts don’t earn interest traditionally and consistently. Instead, each bond is entered into a monthly randomly generated prize draw.
Premium Bonds are a savings account offered by National Savings & Investments (NS&I), one of the largest savings institutions in the UK, backed by the Treasury.
The accounts don’t earn interest traditionally and consistently. Instead, each bond is entered into a monthly randomly generated prize draw.
Between £25 and £50,000 can be invested in the account overall, and prizes of up to £1million can be won every month.
NS&I says the more bonds a person has, the higher their chance of winning a prize.
How to invest in Premium Bonds
Anyone aged 16 and over can buy bonds, and people have to invest a minimum of £25 to begin.
The annual prize fund rate is 4%, which funds the monthly draws for tax-free prizes. This is set to drop to 3.8% for the next draw in April. According to NS&I, the odds of any £1 bond number winning a prize are 22,000 to one.
People must hold the bonds for a whole month before they’re eligible for the prize draw. For example, if a person buys Premium Bonds any time in November, they’ll be entered into the January prize draw.
Withdrawals can be made at any time online, by phone or by post with no notice or penalty. However, savers needing to withdraw money should plan in advance, as it can take three to five days for the cash to reach their bank account.
Before NS&I accepts an application, it states that it needs to check and confirm the applicant’s identity and address, which means they may request additional documents.
After this, the savings institution said it aims to open the account in seven to 10 working days if there are no more documents required. People can find out more about how to invest in Premium Bonds here.
However, it’s important to note that investing in Premium Bonds doesn’t guarantee prizes. Some people may go years without winning anything, which has led some financial experts to argue that traditional interest-earning savings accounts can be more profitable.
Speaking previously on his BBC 5Live podcast, the Martin Lewis Podcast, Martin Lewis said: “Most people should be looking at putting money in cash ISAs first because, with typical luck, you will win substantially more in a top one-year fix than you would in Premium Bonds, and you’d see them win more in an easy access cash ISA.”
