Here are four common misconceptions about NS&I’s Premium Bonds.

NS&I’s Premium Bonds hugely popular with UK savers/punters, but there are plenty of myths surrounding who wins.

1. Older bonds are excluded from the draw

Some people think that old bonds are excluded from the draw as those people are unlikely to sell their bonds, whereas new holders are more likely to cash out. This is not true.

If you keep a close eye on the winning bonds it can seem like newer bonds have a greater chance of winning, but this is a result the majority of bonds having been bought since 2000.

However, each £1 bond has the same chance of winning a prize regardless of when or where it was purchased.

As a case in point, in the latest draw, there were a handful of £25,000 prize winners who’d purchased their bonds back in the 80s and 90s.

2. You only win if you have £1,000s invested

The more bonds you own the better your chance of winning as you will have more chances of matching the numbers, but you don’t have to hold loads of bonds to win.

Looking at May’s draw once again, a punter holding just £7 worth of bonds purchased in 1976 bagged a £25,000 prize.

Back in 2017, someone with just £20 in Premium Bonds won £100,000.

3. The more people own bonds the less the chance of winning

Many people think that if lots of people hold Premium Bonds that will dilute your chances of winning as you’ll be competing against all those people.

The opposite is actually true. The prize fund for each draw is a month’s interest on all eligible Bonds in the draw.

So, in fact, the more Bonds that are sold, the bigger the prize fund will be.

4. You’ve more chance of winning if you live in the South East

Close watchers of the prize notifications may spot that lots of people in the South East of England win.

This isn’t down to some geographic preference on the part of ERNIE, the machine that generates the winning numbers, it is simply a result of more people in the South East owning Bonds than elsewhere in the country.