Press release

A second £1 million Premium Bonds jackpot is to be introduced in the August prize draw, doubling the number of top prizes to two and signalling the first major change since April 1994 when the first £1 million jackpot prize was introduced.

From August onwards, National Savings and Investments (NS&I), which runs Premium Bonds, will give away two £1 million tax-free jackpots in the monthly draw and over one million other tax-free prizes from a total fund of £72 million.

In order for customers’ Premium Bonds to go into the August draw for a chance to win one of the two £1 million jackpots, they must be bought before the end of June.

From August, the Premium Bond prize fund rate will also increase from 3.20% to 3.25% tax-free, equivalent to 5.42% for a higher rate taxpayer and 4.06% for a basic rate taxpayer, which are competitive rates compared to other savings and investments on the high street.

NS&I is able to introduce this ‘double jackpot’ following several years of significant growth in the amount of money invested in Premium Bonds – customers have invested more money over the past six years than in the previous 42 years put together.

In April 1994 – when the single £1 million jackpot was introduced – the total amount invested was £4 billion.  It now stands at more than £26 billion.  And today, 23 million people own Premium Bonds.

More prizes for more people

There are now nearly five times as many prizes as there were in the April 1994 draw, increasing from 225,000 then to an estimated 1.1 million prizes for August.  The value of the prize fund has risen from £14.6 million in April 1994 to an estimated £72.4 million for August 2005 – an increase of nearly 80%.

Since the first Premium Bonds prize draw in 1957, a mind-boggling 123 million tax-free prizes worth £7.8 billion have been given away.

Sharing success

Alan Cook, NS&I chief executive, said: “Premium Bonds have been going from strength to strength in recent years and we wanted to share this success with people who want an exciting way to save money and enjoy the opportunity of winning one of two £1 million prizes each month, or one of the other million prizes we’ll be giving away.

“Our existing Premium Bond customers and those who are new to us are excited by the chance of becoming a millionaire, but also see it as a serious investment.  With Premium Bonds, you could win big money, but you definitely won’t lose a single penny.  It is this fact which, in an uncertain world, makes Premium Bonds so attractive to so many people.

“By offering two jackpots, NS&I is making Premium Bonds more attractive and thereby helping to encourage the savings habit in Britain.”

The magic of Premium Bonds

Each £1 invested buys a unique Premium Bond number and these go into a monthly draw.  The eligible Bond numbers picked by ERNIE, the Premium Bond number generator, will win a prize, ranging from £50 to £1 million.  Launched in 1956, Premium Bonds are an established part of the nation’s financial fabric.

Jackpot winners come from all walks of life, from the financially astute to those who say they ‘enjoy a flutter’.  The winner of the July 2004 jackpot had just £17 in Premium Bonds and she lived in modest circumstances in Newham, east London.

Buying Premium Bonds

Customers can invest between £100 and £30,000 per person and Premium Bonds can be bought for children under the age of 16 by their parents, grandparents or guardians.

Premium Bonds can be bought online at www.nsandi.com, by phone on 0500 007 007, over the counter at a Post Office branch or by post.  NS&I also offers a Premium Bonds monthly regular savings scheme, enabling customers to invest fixed amounts by standing order.

ENDS

Notes to Editors

First multiple jackpot in 30 years

This is the first time in more than 30 years that there has been more than one jackpot prize.  Before 1971, when a single jackpot of £50,000 was introduced, it was usual for there to be a larger number of top prizes, and between 1960 and 1971, each of the top prizes was worth £5,000.

In 1980, the jackpot increased to £250,000 and went up to £1 million in April 1994.  Since the first Premium Bonds prize draw in 1957, 123 million prizes worth £7.8 billion have been awarded.

The announcement

On Friday 17 June, NS&I is to celebrate the launch of the ‘double jackpot’ with a photo call and interview event at London’s prestigious Savoy Hotel (Strand entrance) with Katherine Jenkins, the Welsh mezzo-soprano and winner of the Album of The Year award at the 2005 Classical BRIT Awards, sponsored by NS&I.  This event will take place between 09.00 and 10.30 on Friday 17 June.

This information must be held under strict embargo until 06.00 on Friday 17 June.  Details of the photo call have been sent to your picture desks or news planning desks.

Interviews

The NS&I media team is available now to give detailed media briefings.  NS&I chief executive Alan Cook, marketing director Karen Jones and sales director John Prout are available this week for interviews and photographs.  Please contact the NS&I media team (details below) for a media briefing or to book your slot with Alan, Karen or John.