Glad to see that we can now view the rates for our reviews. Maybe next time Ciao should test the new...
Glad to see that we can now view the rates for our reviews. Maybe next time Ciao should test the new system before installing it?
Member since:21.10.2000
Reviews:939
Members who trust:331
Way back in 1960 when I was just six years old my Grandmother and I both bought one Premium Bond each and we solemnly agreed that we would share anything that we won. My Grandmother died in 1981 without ever winning anything and I still have my one number, which has never come out either!
Seriously though I know that the chance of winning with just one number are fixed at 20,000 to 1, as there is one prize awarded for every 20,000 Bonds in the draw, so I don’t really expect anything, although I wouldn’t refuse it now would I?
The principle of the Premium Bonds is a no loose gamble. It works like this – you buy Premium Bonds at £1 each (minimum purchase is now £100 at a time) and each Bond has a unique number.
Each month a machine called ERNIE, which stands for Electronic Random Number Indicating Equipment, draws numbers at random and the owners of the Bonds that match those numbers win the prizes.
Once you have bought your Bonds they are automatically entered into every draw.
Each month there is one prize of £1,000,000 and further prizes of £100,000, £50,000, £25,000, £10,000, £5,000, £1,000, £500, £100 down to half a million £50 prizes.
The bit about being a no loose gamble is that you can have your stake money back whenever you like. I appreciate that the money which you have tied up in Premium Bonds is not earning interest as it would in the building society, but how many other gambles give you your stake back whether you win or loose?
You can only buy Premium Bonds for yourself or your son or daughter or grandson or granddaughter. For some reason you are not allowed to buy them for anyone else.
I buy £100 worth of Premium Bonds each year for my Goddaughter by way of a combined (November) birthday and Christmas present and I have to get the form from the Post Office and fill it in for her mom or dad to go and order the Bonds. Crazy isn’t it?
By the way the reason I buy her Premium Bonds is this – I thought that the rest of the friends and family will buy her all the toys that she wants so I would buy her the Bonds. She may well win, although she now has £700 worth and hasn’t as yet, but at least she can cash them all in when she is older to help pay her way through University or to put towards her first car or whatever she wants to do.
Each person who owns Premium Bonds also has a unique reference number so that when you buy further Bonds they can be linked to this number and provide a cross-reference of all the Bonds that you own. You just have to fill in your reference number on the Premium Bond application form. This makes the administration easier if you move house or change your name.
Talking of buying further Bonds the maximum amount one person can own is £20,000 worth. Would that I had that sort of money to spare! In fact would that I had it at all!!
The Premium Bonds form part of National Savings network, which also has its own website at www.nationalsavings.co.uk if you need any further information. You will find Premium Bonds under Tax Free Investments as any money that you do win is tax free.
If, sorry, when you win ERNIE’s office, based at Lytham just outside Blackpool, will get in touch with you. This is of course providing that you have notified them of any changes of address. Any unclaimed prizes are held indefinitely so you can always check either at your local Post Office or on the web site to make sure that you haven’t got £1,000,000 waiting for you.
By the way if you do find that you have £1,000,000 in the unclaimed fund remember who told you about it!
How helpful would this review be to a person making a buying decision? Rating guidelines
Although you now have to buy larger amounts, I think they are still good value for money. How many items can you cash in 20 years later for the same amount. A good op. Fiona
Hippylongstocking 24.10.2001 15:50
An excellent op - my grandmother used to buy me these when I was very young and I did once win £50 from them
mbmb11 02.10.2001 14:29
This is a cool way to save money, and gain extra rewards at the same time!!
mbmb11 x
Advantages: An excellent way of saving for your child's future without incurring any tax liability. Disadvantages: Interest rates are not up with the best.
Sep 29th, 2001
(Oct 24th, 2001)
very helpful by (100%):
