These Premium Bonds are issued by the Government-backed savings provider National Savings and Investments (NS&I), which offers saving and inves
These Premium Bonds are issued by the Government-backed savings provider National Savings and Investments (NS&I), which offers saving and investment products to the public. Unlike other investments where people earn interest or a regular dividend income, the Premium Bonds concept involves individuals entering into a monthly prize draw.
More specifically, two £1million jackpots are paid out each month.
Essentially, a person invests in a savings account from NS&I and buys £1 bonds, with each bond having an equal chance of winning.
The February 2022 Premium Bonds prize draw is coming up, with results being announced on February 1, 2022.
Details of the draw are of course unknown until then, but NS&I has shared some estimations about the number of different high value prizes.
For the higher value draw of £100,000, there will be an estimated six prizes in February 2022.
For the £50,000 draw, this stands at 11 and for £5,000, 113 people are estimated to be selected as winners.
For the medium value draw of £1,000, there will be an estimated 1938 prizes in February 2022.
However, for the lower value draw of £100, it looks set to be 31,487 while 3,299,638 people are predicted to have a chance of winning £25.
The winning bonds are selected by ERNIE, NS&I’s Electronic Random Number Indicator Equipment.
NS&I calculates the number of prizes by dividing the balance of the prize fund share allocated to the higher value band equally among the remaining prize values.
For example, they first work out the number of £100,000 prizes and when there is a balance that’s less than half of that prize value, this is then carried over to the share for the £50,000 prizes.
The draw and winning bonds are revealed on the first working day of each month.
The results schedule is therefore slightly later if the first day of the month falls on a weekend or bank holiday.
First introduced in 1956, Premium Bonds are an investment product issued by the NS&I.
Premium Bonds are owned by around 21 million people in the UK.
It is not possible to earn regular income on Premium Bonds.
This is because people are not guaranteed to get any percentage of the money they contribute.
According to NS&I, it takes up to three banking days for the prize money to reach a person’s account.
The exception to this is if a person selects the option of cashing in after the next draw.
Any prizes won on from Premium Bonds are free from UK income tax and capital gains tax.