More than 21 million people cross their fingers every month in the hope their Premium Bonds will pay them a prize
More than 21 million people cross their fingers every month in the hope their Premium Bonds will come up trumps and pay them a prize.
But Ernie, a computer whose task it is to select the winners, is becoming meaner as a result of National Savings & Investments’ decision to reduce payouts in response to continued low interest rates.
We assess whether this popular savings vehicle will now lose a little of its sparkle.
Premium Bonds: the essentials
They allow savers the opportunity to win monthly prizes of between £25 and £1 million.
The minimum holding is £100 and the maximum £50,000. Winnings are free from both income tax and capital gains tax.
Bonds can be bought by anyone 16 or over. They can also be purchased by parents or grandparents on…