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Premium Bond go paperless

Topic closed. 3 replies. Last post 6 years ago by myturn.

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Bondi Junction
Australia
Member #57242
December 24, 2007
1102 Posts
Offline
Posted: July 5, 2011, 9:08 pm - IP Logged

Premium Bonds are lottery bonds issued by the United Kingdom government's National Savings and Investments scheme. The government promises to buy back the bond, on request, for its original price. They were introduced by Harold Macmillan in his 1956 budget. The first winner was Ronnie Butters, a railway shunter working at Halifax; he was later to advertise Premium Bonds on television.

 

The government pays interest on the bond. But instead of the interest being paid into individual accounts, it is paid into a prize fund from which a monthly lottery distributes tax-free prizes, or premiums, to those bond-holders whose numbers are selected randomly. The machine that generates random numbers for the lottery is called ERNIE, for Electronic Random Number Indicator Equipment. There are many different prizes ranging from £25 to the top prize of £1,000,000.

 

Now, Premium Bonds have come into the online age. You can go paperless and get and manage bonds online, get an email notification if you win a prize.

We all get a lot out of lotteries!

    sully16's avatar - sharan
    Ringleader
    Michigan
    United States
    Member #81740
    October 28, 2009
    42114 Posts
    Online
    Posted: July 6, 2011, 10:15 am - IP Logged

    interesting.

     HyperBe Happy.

      Bondi Junction
      Australia
      Member #57242
      December 24, 2007
      1102 Posts
      Offline
      Posted: July 8, 2011, 12:02 am - IP Logged

      Premium Bonds - All Prizes are Tax-free

      Tax-free means that prizes are exempt from UK Income Tax and Capital Gains Tax.

      We all get a lot out of lotteries!

        Bondi Junction
        Australia
        Member #57242
        December 24, 2007
        1102 Posts
        Offline
        Posted: July 8, 2011, 12:11 am - IP Logged

        Premium Bonds - Prizes


        The table below shows the value of the individual prizes together with the number of prizes of each value for the June 2011 draw, as an example. We’ll update this estimate every three months or whenever we change the prize fund interest rate, prize values, odds or prize distribution.

         

        Prize draw in June 2011 (estimated)

        Prize band Prize value Number of prizes
         
        Higher value (6% of prize fund) 

          £1 million 1
          £100,000 4
          £50,000 10
          £25,000 17
          £10,000 43
          £5,000 87


        Medium value (5% of prize fund)

          £1,000 1,064
          £500 3,192


        Lower value (89% of prize fund)

          £100 31,259
          £50 31,259
          £25 1,706,155


        Total value for June 2011 £53.2 million 1,773,091

        We all get a lot out of lotteries!