# Premium Bonds Prize Breakdown

 Value Bands Prize % Total Number of Prizes Higher £1 million 7 % 2 £100 000 4 £50 000 7 £25 000 15 £10 000 38 £5 000 76 Medium £1 000 5 % 1110 £500 3330 Lower £100 88 % 15211 £50 15211 £25 1863026 Total £55.5 million 1898030

Here is the August 2014 prize breakdown. When I first bought the bonds, the prospect of winning prizes was exciting. Like everyone, you hope of winning the first prize, which is one million pounds. After a few years, you hope of winning the second prize, which is £100,000. After a few more years, your expectation lowers further, you hope of winning at least a £1000, then a few more years pass, and you hope of winning at least £25.

It has been such a long time that I do not even think about them now. There are many unclaimed prizes, which is an indication of the large numbers of people just like me who got tired of waiting and simply forgot.

In the following sections of this article, I have a calculator to figure out the equivalent interest you could have earned. This is worth calculating to see what you could have had, had you invested it in a compounded interest product. I was recently reading the Buffettology book and it makes a good case for compound interest savings.

## Improving Your Chances

Many people have noticed that if they buy new Premium Bonds, they usually win a small amount within a year, and then after that, they get nothing. So perhaps the trick is to cash-in your bonds every year and buy new ones. Once you win something, cash them all in again.

If you buy a thousand pounds of bonds together, they usually provide a range of numbers in a block, which probably does not help much. You could improve your chances of winning by spreading out the numbers. Therefore, it is probably better to buy a small amount of bonds separately.