Customers will be able to invest a further £10,000 in Premium Bonds from this Monday, June 1 after the maximum holding limit was increased from £40,000 to £50,000.
The change follows the Chancellor’s announcement in the 2014 Budget that NS&I would help support savers by increasing the Premium Bonds investment limit. It comes 12 months after the Premium Bonds limit was increased from £30,000 to £40,000 with a second £1 million prize winner also being introduced from August 2014.
Premium Bonds remain popular with savers for a variety of reasons: they offer a chance to win tax-free prizes, they can be easily bought and managed online or by phone and due to the excitement that ERNIE brings each month when he creates two £1 million jackpot winning Bond numbers and delivers over 2 million other prizes from £25 to £100,000.
ERNIE's on Facebook
To celebrate the increase to the allowance – and to encourage Premium Bonds holders and fans of ERNIE to share their Premium Bond stories - NS&I has launched a new Facebook page ‘Premium Bonds made by ERNIE’.
The page will give people the chance to explore the history of one of Britain’s most loved savings products and invites them to share with the world some of their own experiences using ?#ERNIEmoment. To visit the ERNIE Facebook page click here.
More options for buying bonds for children
In addition to the changes to the Premium Bonds limit, from this Monday parents or legal guardians will now have the opportunity to purchase Premium Bonds for their children directly online or by phone for the first time.
Previously parents could only buy by post, or at a Post Office branch, but they can now purchase bonds for their children (so long as they are under 16) through the internet or over the phone.
Jane Platt, NS&I’s Chief Executive said: “Premium Bonds are one of the nation’s favourite ways to save. Last year we saw a huge level of interest when we raised the limit from £30,000 to £40,000 and this latest increase to £50,000 is further good news for customers who want save more and to give themselves extra chances to win a tax-free prize.”
Premium Bonds facts
- Since the first Premium Bonds prize draw in June 1957, over 316.2 million tax–free prizes have been paid out
- Each month ERNIE, the Blackpool-based random number generator, produces numbers that deliver prizes ranging from £25 up to the £1 million jackpot
- In May 2015, ERNIE paid out over 2 million prizes, together amounting to over £60 million in value. The overall value of prizes paid out each month is based on the prize fund rate and the number of Bonds in the draw. This means the more money invested in Premium Bonds, the higher the overall value of prizes awarded for a given prize fund rate
- Premium Bonds offer investors 100% capital security because NS&I is backed by HM Treasury. Investors can cash in their Premium Bonds at any time.
Some myths about ERNIE
Can Bonds be left out of the draw? No. ERNIE just generates random numbers. No numbers are entered or stored in ERNIE, so no eligible bonds can be left out of the draw.
Does changing numbers change your luck? Sadly not! If you cash in and buy new bonds you will have to wait another calendar month for your new numbers to enter the draw. And meanwhile ERNIE might have picked your old number.
Why do people in the South East of England win more often? Because there are more bonds held there compared with the rest of the UK.
Why do old bond numbers never win? They do win. But there are so many more new Bond numbers in the draw that it is less likely – over 91% of eligible Bonds have been bought since the year 2000.
How to buy Premium Bonds
- Direct transfer from your bank account - if you already have some Premium Bonds and know your holder’s number, an easy way to buy more bonds is to make a transfer from your bank account
- Apply online - visit the NS&I website
- Apply by phone - call any time on 0500 500 000
- Apply by post - complete an application form available from NS&I and post it back to us
- Apply at your local Post Office – over the counter.