File £2.16 billion extra saved in Premium Bonds in a month

New knowledge reveals that the variety of Premium Bonds within the March draw is 2,160,113,561 greater than the quantity within the February draw. This determine is the best improve within the variety of bonds in a draw in comparison with the earlier draw that we have seen, and NS&I has confirmed it is the largest month-on-month improve on report. It even beats the “simply over £2 billion” price of bonds that NS&I says was the web improve in December 2006, when it held a particular 50th anniversary draw which had 5 £1m million winners.

It is probably that folks put extra money in Premium Bonds in January as charges on normal financial savings continued to tumble – the highest easy-access account in the beginning of the month supplied a dire 0.55%, and the tip of the month it was even decrease at 0.5%. 

We have extra evaluation under on why the massive take-up of Premium Bonds might herald a potential price lower. For full information on how Premium Bonds work – and whether or not they’re price it – see our Premium Bonds information. Or calculate your odds with the Premium Bond Likelihood Calculator.

Premium Bonds at the moment have an annual prize price of 1%

Premium Bonds are successfully a financial savings account, however as an alternative of being paid curiosity, every £1 bond’s entered right into a month-to-month prize draw the place you possibly can win tax-free prizes starting from £25 to a whopping £1 million. In fact, the month-to-month prize draw ingredient means you possibly can win nothing too.

The closest factor Premium Bonds must an rate of interest is their annual prize price, which is at the moment 1%. That is a benchmark of the ‘common’ return you may get to your cash – although in actuality, there isn’t any assure you may win something in any respect.

What it actually means is that for each £100 saved in Premium Bonds throughout the market, £1 is paid out yearly in prizes. But the prizes embrace two £1 million payouts, and plenty of prizes for £100s or £1,000s – that means a number of folks must win far lower than this prize price. Actually, most win nothing. This statistic illustrates it properly – of the 104.2 BILLION bonds in March’s draw, solely 3.02 MILLION gained a prize (and 98%, or 2.96 million, of these prizes have been simply £25).

The month-to-month improve from Feb to March was far above common

The variety of bonds in every draw in contrast with the final is powered three various things:

  • The variety of Premium Bonds purchased in a month. For March’s draw that is the quantity purchased in January (you want to maintain bonds for a full month earlier than they go in to a draw). 
  • Prize cash which has been reinvested. For March’s draw, that is cash reinvested from February’s draw.
  • Any cash taken out of Premium Bonds is subtracted. For March’s draw, this implies cash withdrawn in February. 

We have crunched the numbers on Premium Bonds purchases again to July 2016 and located that the rise between February and March isn’t solely a report however far above common, even for the final 12 months:

Between July 2016 and March 2021, the common month-to-month improve in Premium Bonds funding was £766 million. And whereas this determine hides the truth that Premium Bond purchases have shot up for the reason that begin of the pandemic, if you happen to look simply on the interval between April 2020 and March 2021, the common improve was simply over £1.5 billion – nonetheless far lower than this month’s big complete.

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