Why they won’t forget Ernie...
It’s 60 years this week since the first Premium Bonds were drawn
THEY call him Ernie – not the fastest milkman in the West but the computer that has picked the winning Premium Bond numbers every single month since June 1957.
As Ernie – it stands for Electronic Random Numbers Indicator Equipment – celebrates the diamond anniversary of its first winners on Thursday, two people will be getting a knock on the door from Agent Million to tell them the good news they have won a seven-figure sum in return for their £1 stake.
Today Premium Bonds have been somewhat overshadowed by the massive prizes given away in lotteries. But for 40 per cent of the population, they are still a favourite way of investing. The two winners announced this week will bring the total of Premium Bonds millionaires to 364.
SUPERMAC SAYS HE’S SAVING THE NATION
Tory chancellor and future prime minister Harold Macmillan unveiled the idea of Premium Bonds in his Budget in April 1956 with the catchphrase “Saving with a thrill.”
He said the aim of the scheme was to control inflation and encourage saving in the post-war era. Labour’s shadow chancellor Harold Wilson called the scheme “a squalid raffle” and a “national de-moralisation” while the Church feared Britain would become a nation of gamblers and warned people against buying the bonds.
But they did, in their millions. At a ceremony in Trafalgar Square the following November the first £1 bond was bought by the Lord Mayor of London, Alderman Sir Cuthbert Ackroyd. The second was bought by W Crook, the Mayor of Lytham St Annes in Lancashire, where Premium Bonds operations were then based – and by the end of the day £5million worth had been sold.
ROLL UP, ROLL UP FOR A TOP PRIZE OF £1,000
In those days bonds had to be held for six months before they were entered into the draw so it was not until June 1, 1957 that the first winner was chosen by Ernie.
The prize fund was a staggering £82million – equivalent to £1,862,655,000 today – and there were 23,000 prizes, with the greatest amount being £1,000. That would be worth £22,700 today. Once you have bought a bond it stays in the draw unless you cash it in so the 41,000 bonds sold in November 1956 are still eligible to win today.
The biggest prize now is £1million and there are two jackpot winners each month. The maximum you could invest 60 years ago was £500 but now it’s £50,000, while the minimum investment was £1 but today is £100.
ERNIE DOWN THE GENERATIONS
The original Ernie machine was invented by Tom Flowers, a former code breaker at Bletchley Park.
The device ensures every number has a separate and equal chance of winning. Since 1957 there have been four generations of Ernie with each becoming faster and smaller.
AN OLD ‘UN CAN STILL BE A GOLD ‘UN
Several myths surround Premium Bonds. One is that Ernie is biased towards people in the South-east. But that is because more bonds are bought there. Another myth is that bonds with old numbers are left out. This is not true.
Because more than 80 per cent of bonds have been bought since 2000, newer numbers have a greater chance of being chosen. The third myth is buy your bonds on a Wednesday, which is said to be the luckiest day.
ALBERT GOES TO TOWN WITH HIS WINNINGS
In a 1964 episode of Steptoe And Son called The Bonds That Bind Us, Albert asks Harold to help him check his Premium Bond numbers. Harold scoffs at Albert’s hopes of winning but this rapidly turns to excitement as they discover he has won £1,000.
Imagine Harold’s dismay when his father reminds him that the winnings all belong to him – because Harold had sold his share of the bonds to Albert so he could join a posh tennis club. Albert heads up to the West End for a spending spree that includes a new suit, a facial and a new set of false teeth, and arrives home with a gold-digging blonde (played by June Whitfield) on his arm.
ODDS GET LONGER
The odds of winning a prize in the monthly draw used to be 26,000 to one. But in June last year, as National Savings & Investments cut interest rates, the odds were lengthened to 30,000 to one.
HOW TO BE LUCKY
If you can, buy bonds within the City of London, the luckiest place for winning high-value prizes. Wales has had the fewest winners simply because fewer bonds are bought there. You could always change your name to Hannah, the luckiest name for winners. Sean is the second luckiest name.
BOND’S BEAUTIES
An annual Miss Premium Bond competition was run by the NS&I during the Civil Service Sports and Social Club Day held at Lytham St Annes. Contestants would walk down the catwalk, smile at the judges then answer questions about their work.
NO ONE WANTS IT
There are a whopping 1.3 million unclaimed prizes worth £53.9million with winners dating back more than 50 years.