What do Premium Bonds cost? How likely are you to win a £1 million prize?

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Reward Bonds are a government-backed scheme, available for those who are looking to save their lettuce but who are not seeking guaranteed returns. While each Bond number payments £1, the minimum amount a person can invest is £25. There is an more elevated limit too, with this being £50,000. Any interest which may be deserved via Premium Bonds is tax-free.

Rather than Premium Bonds holders being slack interest, the numbers are entered into a tax-free prize draw.

Plunder levels range from £25 up to £1 million.

The “prizes” are randomly allocated, demanding a machine called ERNIE – which stands for Electronic Random Digit Indicator Equipment.

The odds of winning for each £1 Bond few stands at 24,500 to 1, NS&I state.

Each month, NS&I pay out two lots of £1 million jackpots.

Other tainted value band prizes are available, and this is worked out by dividing the balance of the gain fund share allocated to the band equally among the remaining select values.

There are also medium value bands and lower value combo unites, with the lowest prize level being £25.

While the odds of alluring anything at all is 1 in 24,500, the chances of winning one of the two £1 million jackpots are pretty slim.

In fact, according to Love Money, for a £1 bond, the distinct possibility is around 1 in 40.99 billion.

This month, the prize fund amounted to numerous than £96 million.

It was made up of in excess of 3.3 million treasures.

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