Talk:Premium Bond

Untitled
" Interest is paid on the bonds" -- AFAIK, no. the interest is what is goes towards the prizes -- Tarquin

I got that from inaccurate second-hand information: my fault. According to the official web site, no interest is paid, so I have amended the article. -- Heron

NS&I dropped the interest rate (and therefore the odds of winning)
Sorry, this makes no sense. I used to teach maths, and I tried to work out the logic of this statement, but there isn't any (there is a similar statement elsewhere in the article). The interest rate has nothing to do with the odds of winning, since the latter is to do with the number of discrete prizes relative to the number of bonds in existence at the time of the draw (and not with the total jackpot or the distribution curve of the values of the discrete prizes). — Preceding unsigned comment added by 82.68.94.86 (talk) 18:00, 6 February 2015 (UTC)

Criticism of Macmillan
Didn't Macmillan receive a lot of flak for introducing this scheme? It was viewed by the moral puritans in the Conservative party as gambling? It is interesting to see how successful this scheme became, in spite of the early criticism.


 * It succeeds because it is a good investment. It is a gilt-edged investment you can cash in at any time, it pays 1.3% tax free (as of 2013-07-23) which beats most bank deposits, 99.8% of monthly winners take 91% of the fund and it has the big upside potential with a monthly £1 million prize.  It is even arguable that it is not gambling since you can't lose your "stake" (unlike most banks).  What's not to love? p.r.newman (talk) 11:25, 31 December 2013 (UTC)

New Tables
Although I don't have them, I have read that the prize draw money is now paid differently than is in the current table. I am sure there is now only one 1 Million pound prize. I also believe the mid range prizes are about 5% of the prize fund now. —Preceding unsigned comment added by Switchbackk (talk • contribs) 08:42, 21 April 2009 (UTC)

Autochthony writes. Why not refer to the NS&I Website: http://www.nsandi.com/products/pb/overview.jsp. Autochthony. 5 June 2009. 86.161.194.33 (talk) 19:48, 5 June 2009 (UTC)

Autochthony writes. National Savings advise that the maximum holding level has been: - 01-11-56 £500 01-08-60 £800 21-04-64 £1000 14-04-67 £1250 01-04-71 £2000 11-09-78 £3000 21-04-80 £10,000 03-04-93 £20,000 12-05-03 £30,000 Not sure where to add this in the Article. Autochthony 7 June 2009 86.161.194.33 (talk) 19:48, 7 June 2009 (UTC)

Random?
"ERNIE's output is independently tested each month by an independent actuary appointed by the government, and the draw is only valid if the output passes tests that indicate it is statistically random."

So then: is the output truly random? Or has it had constraints put on it — such as having to pass a statistical test? Paul Magnussen (talk) 16:53, 9 October 2013 (UTC)

-- Yes, it is "truly random" as the numbers are generated by a random physical process not an algorithm, as explained in the text. The statistical tests are to verify that it IS random. 146.198.175.95 (talk) —Preceding undated comment added 11:26, 24 August 2019 (UTC)

UK Lottery illegal in the USA
A friend who is a UK citizen resident in the USA tried to buy UK Premium Bonds but was told by NS&I, "The US Postal Service Law Department has told us it is an offence against their Lottery laws to use the mail service for Premium Bond correspondence. This includes Premium Bond prizes.

They have asked us not to break their laws and we have to respect that request as far as we can. Due to this law I regret to inform you that you can not invest into, or hold, NS&I Premium Bonds from the United States of America.

Even if you gave us a receiving address outside the USA, it would not be a solution because we would still need your signature for a prize win."

Hey, ho. Calling it a lottery was the only mistake. Preference shares are a less safe "investment" - maybe the US should consider Wall Street a lottery. Home of the paternalised, land of the overregulated? p.r.newman (talk) 11:08, 31 December 2013 (UTC)

I find it distasteful that the only source that says the US considers them illegal is the NS&I site. They should stop sending these letters and let American citizens manage our finances legally just like we always do. 89.240.138.241 (talk) 08:50, 15 August 2021 (UTC)

External links modified
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External links modified
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I have just modified 1 one external link on Premium Bond. Please take a moment to review my edit. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple FaQ for additional information. I made the following changes:
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Premium Bonds in World War One?
The author Dornford Yates has Premium Bonds in Chapter 9 of his book “Jonah and Co.”(1922). Was there an earlier version? 12.201.7.201 (talk) 00:35, 21 April 2018 (UTC)


 * It looks as if the concept does have a much longer and richer history than indicated in the article, though I don't have many details. The Oxford English Dictionary defines "premium bond" in non-specific terms as "a bond earning no interest but eligible for lotteries", and then offers the following pre-1956 quotations:
 * 1820: The Times 13 Sept. 3/1 "The premium bonds will be delivered with the state bond and dividend warrant on the 1st February, 1821."
 * 1889: Journal of the Royal Statistical Society 52 316 "The securities dealt in on the Bourse on the 1st January, 1789, were the following: Indian bonds of 2,500 livres ... ; lottery notes of 1780, of 1,200 livres each; premium bonds of 1788 and 1789; lottery of April, 1783, of 600 livres [etc.]."
 * 1892: Publications of the American Economic Association 7 101 "So covert that it has apparently never been recognized ... is the sinking fund concealed in the interest paid on premium bonds."
 * 1908: The Economist 12 Sept. 477/2 "The practical man in the street who knows anything about premium bonds is quite aware that they are in their nature and intention lotteries."
 * 1931: The Star 8 May 6/3 "Every trick—from premium bonds to guessing the number of beans in a bottle—seems to have been tried."


 * Some of that material could perhaps be used here, but a bit more context is needed. GrindtXX (talk) 13:24, 7 May 2018 (UTC)


 * I've added something to the 'history' section. Sumorsǣte (talk) 21:41, 5 December 2019 (UTC)

New rate from May 2020
The rate will drop from 1.4% to 1.3% from May 2020 draw, with a corresponding cut to chances of winning prizes. 213.253.7.254 (talk) 11:13, 18 February 2020 (UTC)


 * The proposed rate cut was cancelled. It remains at 1.4% 2.25.254.143 (talk) 20:05, 1 June 2020 (UTC)