A Premium Bonds holder was left feeling let down after they found out that their Bonds, held for 37 years, had not yielded any prizes.
NSandI responded by highlighting how Premium Bonds operate, explaining: "Please note that interest is not earned on Premium Bonds, so the value of the Bonds will remain the same."Instead of accruing interest, Premium Bonds are entered into a monthly prize draw. Yet, savers should consider the impact of inflation; the original investment maintains its nominal value but loses real value over time. For example, the £10 invested in 1987 would be equivalent to buying £28.
Experts at the Money Saving Expert website, founded by financial guru Martin Lewis, have broken down how Premium Bonds operate, noting that "This ratio remains the same for a holder of £1 as it does for one with the maximum holding of £50,000. The only distinction between them is that the holder of £50,000 has more 'entries' into the monthly draw. Good luck in future prize draws.
For those looking to boost their chances, a common strategy among savers is to plough any prizes back into buying more bonds. If you fancy getting in on the act, remember there's a minimum purchase of £25.