Written question asked by Gordon Prentice (Labour) on Tuesday, 30 June 2009, in the House of Commons. It was due for an answer on Thursday, 2 July 2009. It was answered by Sarah McCarthy-Fry (Labour) on Monday, 13 July 2009 on behalf of the Treasury.

Premium Bonds

Question: To ask the Chancellor of the Exchequer what the odds of winning a minimum prize with a £500 Premium Bond holding were in (a) 1992, (b) 1997, (c) 2001, (d) 2005 and (e) 2009.

Answer: NS&I publishes details of the current odds of winning prizes on premium bonds on their website at:"http://www.nsandi.com/products/pb/rates.jsp"In 1992, the odds¹ of winning a minimum prize with a £500 premium bond holding were 1 in 23.In 1997, in January and February, the odds were 1 in 44; in March, 1 in 45; in April, 1 in 46; in May 1 in 47; and between June and December, 1 in 39.In 2001 the odds were 1 in 41; in 2005 1 in 49; and in 2009 are 1 in 73.The interest rate and the value of eligible funds invested in premium bonds, provides a total prize pool. NS&I then look at two variables to determine the prize draw structure based (i) on the odds; and (ii) the number of prizes allocated to each value prize band.These variables are determined based on keeping the number and value of prizes at a favourable level for premium bond holders within the constraints of the interest rate and value invested."¹ Rounded to the nearest whole number."

Secondary information