Martin Lewis gives updated advice on premium bonds
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Analysis of archive information on previous Premium Bonds holders has unveiled the individual, who remains unnamed, who is now considered the luckiest winner of all time. The lucky winner in question was from Newham in east London won the prize in 2004 and still has the title of being the £1million with the lowest ever holding at £17 in their account. Usually, most former winners of the £1million prize have just £17,000 in holdings within their Premium Bonds account.
Holders commonly have to wait through 60 draws over five years on average before taking home the £1million prize.
In the history of Premium Bonds, two million prizes have never been claimed, including one £100,000 unclaimed win.
This comes to a total of £73million which has yet to be taken by rightful winners of the NS&I prize draw.
Overall, this particular saver held out for 16,587 days, or 45 years and five months, before taking home the grand prize.
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Speaking to The Telegraph, Anna Bowes, of comparison website Savings Champion, said: “The chances of winning big on Premium Bonds, no matter how small, has always been very attractive for savers.
“After rates on savings deals fell to next to nothing during the pandemic, when central bank rates hit a record low of 0.1pc, the lure became even greater still.
“Unless the chances of winning increase again, savers may be pulled by increasingly higher rates on savings accounts, where they know the interest is guaranteed.”
As a savings account created by NS&I, Premium Bonds is a product which allows savers to deposit and withdraw money from their bank accounts with ease.
NS&I is a Government-supported financial situation, so savers often opt to use its products as it is considered extremely safe.
Unlike other savings accounts, the interest on Premium Bonds is acquired via a monthly prize draw.
The annual prize fund rate for Premium Bonds currently stands at one percent but this is subject to change.
On top of this, the current odds for someone to take the top prize in NS&I’s lottery draw is 1 in 34,500.
At the beginning of every month, NS&I confirms who has one the various cash prizes which are awarded to holders.
Two winners get to claim the £1million jackpot every month. The next Premium Bonds winners are set to be announced on April 1, 2022.
Following this month’s announcement of the £1million winners, Jill Waters, the retail director for NS&I, shared how Premium Bonds investors can boost their chances of getting the top prize.
Ms Waters explained: “A massive congratulations to our new Premium Bonds jackpot winners from Devon and Cheshire.
“This really is a life-changing sum of money and we wish them all the best for the future.
“Aside from our two jackpot winners, this month, ERNIE will be paying out more than 3.3million other tax-free prizes worth £97,337,100, surprising and delighting people up and down the country.
“You can start a savings habit by investing in Premium Bonds from just £25. You can do this via bank transfer or by setting up a regular standing order.
“A regular savings habit really is the best way to help your savings blossom this March.”
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