The HM Treasury backs National Savings and Investments
Premium Bonds are the flagship product that offers the opportunity to win from £25 to £1,000,000 each month.
No interest is paid on the bonds held, instead the holders are offered the chance to win a “cut of the interest pot” and that pot is divided into prizes.
The Odds of winning are 26,000 to 1. (=1/26,000)
The number of prizes that are on offer: Sept 2015 are 2,131,445
With these two figures supplied by National Savings and Investments, one can calculate the total cash invested in Premium Bonds:-
Total Number of Prizes = (Total number of eligible bonds) / (odds for the draw)
Thus:
Total Number of eligible Bonds = (Total Number of Prizes) / (odds for the draw)
Thus total number of eligible bonds = (2,131,455) / (1/26,000)
= £55,157,570,000
That is £55 billion. Yes, £55 Billion invested by UK savers in Premium Bonds.