Woman has won Premium Bonds prize nearly every month
Martin Lewis advises on savings accounts and premium bonds
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Premium Bonds were first introduced by the Government back in 1956 as a way to encourage Britons to save following the second world war. On November 1 that year, Premium Bonds first went on sale and on that day alone, £5million Premium Bonds were saved, which is the equivalent of around £121million today.
People can buy Premium Bonds on National Savings & Investment’s (NS&I) website for £1 each and for each bond bought, they will receive a unique bond number. This number then gets put into the prize draw each month.
The more bonds a person buys, the more numbers get put into the prize draw, which in essence means more chances of winning.
Sarah, whose name has been changed, decided to invest in Premium Bonds three years ago after coming into a bit of money following a divorce from her previous partner.
Speaking to Express.co.uk Sarah said: “When I divorced, I decided that I didn’t want to buy another property and a friend of mine said to me to put this extra cash that I had into them.
READ MORE: 70 health conditions qualify for extra £156 a week in PIP from DWP
“I’m glad I did! I have pretty much won something every month this year bar two months overall. I actually get a little bit annoyed when I don’t win now.”
Sarah has invested more than £10,000 into Premium Bonds and has never won one of the big prizes or the jackpot, but she has won between £25 to £100 each month of the last year with her biggest win being a prize of £125.
She added: “I’ve jinxed it now by saying I’ve won every month, I probably won’t win for a year now.”
Sarah explained that she would’ve put her money into something else if she had more time to think about it but at the time she was much too busy to think and research other investment options.
She said: “It’s all about time with investments, if you want to invest money, you’ve got to be able to put in the hard work and I couldn’t do that.”
Sarah explained she didn’t want to lock the money away in a savings account and she was slightly “wary” about investing her cash into pensions.
She added: “At the time, I knew my money would be safe in there because it’s backed by the Government so it just felt the easiest and safest option so thought I would just see leave it in there for a few years and see what happens.”
Last month, NS&I announced that the Premium Bond prize-fund rate was to increase from 1.4 percent to 2.2 percent for the October prize draw.
This was the second time it upped its prize fund rate this year and was a move in response to the rising interest rates the UK is currently seeing.
The move meant that the odds of each £1 Premium Bond number winning a prize will also improve from 24,500 to one to 24,000 to one.
Sarah explained how she didn’t have a plan for her approach to Premium Bonds and was entirely relying on her good fortunes.
READ MORE: Paramedic shares how she dishes up tasty meals costing 68p per portion
She said: “I don’t know if it’s true, but I was told a long time ago that the art of it was to take £5,000 out, leave it a week and then get a new lot of numbers because apparently, you have more chance of winning if you have new numbers.
“If I’m honest, I’ve never done that, I have just bought mine and left them. I then just check the app every month and see if I’ve won anything.”
However, Sarah does believe to get anything out of Premium Bonds, people need to have a significant chunk of cash to invest.
She added: “The art of it is, you have to have quite a bit in there. If you have a fair amount of money in there then I think you’ve got a much better chance of winning.”
Criticisms against Premium Bonds have increased over the last year, with financial experts warning that the high inflation rates the UK is currently experiencing could wipe out the entire value of someone’s investment.
In August, the UK recorded its level of inflation at 9.9 percent which was down from the month before which saw a 40-year high rate of 10.1 percent.
Sarah noted that she was aware of this and will be considering other options as she doesn’t believe her winning streak will last forever and she plans on researching other investment opportunities over the next few months.
She added: “I want to win the £1million I’m hoping that could happen but if I don’t win for a couple of months, let’s say I don’t win for four or five months, then I will have another look at it, but for now, I’m going to see how long this winning streak continues.
“Maybe next month’s the big one.”
Sarah believes that putting money into Premium Bonds is definitely a “sensible investment” for those who have a substantial sum to invest but are not sure what they should do with it.
She said: “It’s easy, it’s safe, and there’s always a chance you could win, and it’s not locked away so you can pull the money back out if you need to so there’s no risk.”
Source: Read Full Article