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What is the average holding of Premium Bond millionaires in 2019?

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The 24 lucky winners of the Premium Bond £1million jackpot in the last 12 months held an average of £35,957 each in the popular National Savings and Investment product, data shows. 

But two extremely lucky winners this year defied the odds to scoop the £1million jackpot with holdings of about £4,000. 

With the final two Premium Bond winners of 2019 announced today, This is Money crunched the numbers of the holdings of everyone who has received a visit from Agent Million in 2019.

The average was pushed up by the fact seven winners, including one of this month’s winners from the Hampshire and Isle of Wight area, have the maximum holding of £50,000.

Millionaire maker: You could face Jeremy Clarkson to win £1m - or be in the Premium Bond draw

Millionaire maker: You could face Jeremy Clarkson to win £1m - or be in the Premium Bond draw

24 people won the £1million Premium Bond jackpot this year, but how much did they hold?

24 people won the £1million Premium Bond jackpot this year, but how much did they hold?

Millionaire makers: You could face quiz host Jeremy Clarkson to win £1m – or be in the Premium Bond draw

Meanwhile, this month’s other winner from Stockport was close to bang on the average holding – he has exactly £36,000 worth of bonds.

The vast majority of the jackpot winners – in which there are two £1million prizes up for grabs each month – held at least £30,000 in Premium Bonds.

This is unsurprising as the greater the holding, the better the chance of winning the top prize. 

The odds of any individual £1 Bond winning the £1million jackpot is 40.33billion to one.

However, those with smaller holdings shouldn’t necessarily despair, as two of this year’s winners held relatively smaller amounts. 

In October, an Essex winner received a visit from Agent Million holding £4,000 in Premium Bonds, while in June someone from Kent won with a holding of £4,210.

That means the winner from Essex defied odds of just over 10million to one to clinch the prize.

In contrast, someone with the full £50,000 holding would have odds of 806,600 to one, which is still a long shot, but a slightly less uphill task.

Premium Bonds Winners

Prize Area Value of bond
£1,000,000 Stockport £36,000
£1,000,000 Hampshire and Isle of Wight £30,000
£100,000 Essex £50,000
£100,000 Wiltshire £100
£100,000 West Yorkshire £7,500
£100,000 Hampshire and Isle of Wight £9,800
£100,000 Tyne and Wear £10,000
£100,000 Inner London £6,500
More December 2019 winners

View list of December 2019 winners

Do newer bonds win more prizes?

Given that in a previous ask an expert in June this year we addressed the issue of whether newer Bonds have a better chance of winning, it’s also worth seeing how old the Bonds of 2019’s winners are.

We worked out that in the first third of 2019, 79 per cent of Premium Bond prizes of £10,000 or more were awarded to the numbers of Bonds bought since the turn of this decade. 

How the odds change

Chances of winning £1m any given month with:

£100 – 1 in 418,376,082

£1,000 – 1 in 41,818,782

£5,000 – 1 in 8,360,771

£10,000 – 1 in 4,181,142

£36,000 – 1 in 1,159,986

£50,000 –  1 in 835,039

NS&I told us this is because 76.7 per cent of all Premium Bonds have been purchased between 2010 and 2019.

When it comes to Premium Bond millionaires, just one winner, the one from Essex with a £4,000 holding, won with Bonds purchased before 2000.

A quarter of the 24 winners won with Bonds bought between 2000 and 2010, meaning that 71 per cent of the winning Bonds were purchased more recently than 2010.

That’s still an overwhelming number, but is actually slightly below the proportion of all Bonds held which are new.

Including this month’s two millionaires, 3.44million prizes were handed out this December by NS&I’s Premium Bond number generator Ernie, worth a total of £98.4million.

There were 84.3billion Premium Bonds eligible for the draw and they are Britain’s best-loved savings product, with more than 22million people holding them.

However, some savers who were winners last month were left unable to cash their prizes because banks mistakenly thought they were duplicates.

NS&I mistakenly sent out more than £600,000 worth of prizes in November, with 25,000 duplicate prizes sent in error. 

The blunder meant valid cheques were being rejected by banks, because they thought they were the copies.

This month, six bondholders did actually win £100,000, 11 £50,000, 24 £25,000, and 59 £10,000. 

THIS IS MONEY’S FIVE OF THE BEST SAVINGS DEALS

Axis Bank pays a competitive rate of 1.75% AER interest on its one-year fixed rate account. The minimum deposit is £1,000. Those who open an account through savings marketplace, Raisin can also earn up to £100 cashback when depositing funds.

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Newbury BS pays up to 1.5% AER interest on its easy access Welcome to Newbury account, which can be opened online or in person with a minimum of £5 up to a maximum of £3,000. Only available to new members.

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Aldermore pays a rate of 1.5% AER interest (1.49% monthly) on its one-year fixed rate bond. The minimum deposit required is just £1,000. You can replace money withdrawn without it counting towards your ISA limit, subject to a penalty of 90 days interest.

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Principality BS pays a very competitive 3% AER interest on its Learner Earner children’s account on balances from £1 to £20,000. It can only be opened in conjunction with an adult aged over 18 and only three withdrawals can be made per calendar year.

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Virgin Money pays a top rate of 1.36% interest on its Double Take E-Isa account. However, it allows only two withdrawals per year. It requires just £1 to open an account.

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Business

SMALL CAP SHARE IDEAS: SDCL waves the flag for energy efficiency as an alternative to renewables 

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Wind and solar power might be the main sources of renewable energy, but they are not the only options.

Jonathan Maxwell, chief executive of Sustainable Development Capital, believes a far bigger bang per buck can come from energy efficiency.

Maxwell is the manager of SDCL Energy Efficiency Income Trust (SEEIT), the UK’s first listed fund to specialise in combined heat and power (CHP) and rooftop solar projects.

SDCL Energy Efficiency Income Trust (SEEIT) is the UK's first listed fund to specialise in combined heat and power (CHP) and rooftop solar projects

SDCL Energy Efficiency Income Trust (SEEIT) is the UK's first listed fund to specialise in combined heat and power (CHP) and rooftop solar projects

SDCL Energy Efficiency Income Trust (SEEIT) is the UK’s first listed fund to specialise in combined heat and power (CHP) and rooftop solar projects

‘So much attention is paid to clean energy through renewables, but we have to focus on energy efficiency.

‘If power can be provided on pure commercial merit and be cheaper, cleaner and more reliable, that’s exciting.’

That was a reason the trust listed on the main market a year ago.

‘It was a really strong message that this business has matured and has good future growth prospects,’ says Maxwell.

From a carbon efficiency perspective, these projects work just as well or even better than renewables, he says.

Moreover, being on-site they offer the additional benefit of reliability and security at a time when electricity usage is growing and the grids in many countries are under increasing pressure.

For example, the huge upsurge in data usage means that from almost a standing start data centres on their own are forecast to account for more than 5 per cent of the world’s electricity usage by 2023.

That is more than all the electronic devices in the world currently and before the electric vehicle revolution starts in earnest.

Energy efficiency projects can play a significant part in meeting this demand, says Maxwell.

The technology has developed hugely over the past ten years and now offers a real alternative to buying power from the national grid for businesses and large users.

Tesco has just started to install solar panels on selected supermarkets through a partnership with SEEIT.

A recent contract at a Citigroup data centre, meanwhile, is being used as a blueprint as a power solution by others across the ICT (information and communication technology) sector.

The huge upsurge in data usage means that from almost a standing start data centres on their own are forecast to account for more than 5 per cent of the world’s electricity usage by 2023

The huge upsurge in data usage means that from almost a standing start data centres on their own are forecast to account for more than 5 per cent of the world’s electricity usage by 2023

The huge upsurge in data usage means that from almost a standing start data centres on their own are forecast to account for more than 5 per cent of the world’s electricity usage by 2023

Maxwell believes this is just the start and as the technology proves itself, especially in critical environments, the use of on-site energy-efficient CHP boilers will soar.

‘They typically provide cheaper, cleaner, greener energy.’

A growing awareness of lower carbon emissions by companies is also driving a surge of interest. Maxwell says he has been surprised at how important carbon emissions have become for the corporate sector.

‘Companies going green are an incredibly important driver.’

Add in the reliability issue and it’s easy to see why Maxwell believes the time is right for energy-efficient CHP projects. ‘They [CHPs] are cost-competitive, green, and the first line of defence against the grid’s problems.’

Power prices are not an issue for Maxwell. This business is driven by technology, he says, and that means it will remain competitive against any alternative power source.

Even the best-combined cycle gas turbine loses half of the energy it generates, but that is much better than the UK grid where efficiency is 38 per cent.

An on-site CHP system, however, where the heat generated is used rather than ‘dumped’ can see 75 per cent – 85 per cent energy efficiency.  At Citigroup’s data centre, for example, the heat produced from the generator is used to cool the centre.

On-site users also do not have any of the transmission and distribution costs associated with the grid. In short, it’s ideal if the end game is cleaner, cheaper, energy, says Maxwell.

SEEIT raised £100million when it listed, of which £57million was used to acquire a seed portfolio from Sustainable Development Capital.

Since then it has raised a further £172million with the £100million received from the latest round in October to fund a portfolio of nine Spanish assets acquired for €150million.

Target returns for the trust are 7-8 per cent a year and with its half-year results SEEIT re-affirmed plans for a dividend of 5p this year to March 2020 rising to 5.5p in 2021.

At 107p, the yield currently is 4.7 per cent, while the shares trade at an 8 per cent premium to the latest net asset value calculation of 99p.

Going forward, Maxwell expects ICT and data centres will feature heavily in the future portfolio. 

Healthcare, too, will be another key market. Barts in London recently signed a flagship CHP deal but so far only 5 per cent of UK hospitals have on-site generation.

The CHP market has potential to grow 2-3 times, while in rooftop solar ‘half of the world’s lights still need to be changed,’ says Maxwell.

‘We have a good first-mover advantage,’

 

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Tariff hikes likely to double telcos operating profit in FY21: Report

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The Supreme Court order on the AGR puts a burden of Rs 1.47 lakh crore on the industry that has been bleeding for years and sitting on a debt pile of close to Rs 4 lakh crore

The steep tariff hikes, effected earlier this month by the battered telcos which held prices at rock bottom levels for nearly five years, can help more than double their operating profit to Rs 60,570 crore in FY21 from Rs 29,450 crore in FY19, says a report.

It is a “structural positive” for the sector which has been weighed down by weak cash flows and mounting debt levels, leading domestic ratings agency Crisil said on Monday, adding the hikes are a good opportunity for the industry to “repair its financials and become sustainable”.

In the aftermath of the adjusted gross revenue order by the that favoured the government view, all the major telcos hiked subscriber tariffs by up to 40 percent, starting with the prepaid customers.

The order on the AGR puts a burden of Rs 1.47 lakh crore on the industry that has been bleeding for years and sitting on a debt pile of close to Rs 4 lakh crore.

“The crucial part now is pricing discipline and extent of down-trading from current plans to cheaper ones by subscribers. That will determine the kind of net gains that telcos will make in the near-term,” said Sachin Gupta, a senior director at Crisil.

The industry’s debt to operating profit ratio will come down to 4.6 times from the present 7.5 times, if the operating profit improvements indeed happen as expected, the agency said, adding the top three players presently owe Rs 3.3 lakh crore to the system.

The average revenue per user, arguably the most widely tracked number by analysts, will go up by 25 percent following the price hikes to Rs 145 next fiscal from Rs 116 earlier, the agency said.

It said 80 percent of the additional revenue will flow straight into the operating profit given the high operating leverage at which the operate.

The agency said its analysis shows every Re 1 added to the Arpu adds about Rs 1,000 crore to the industry’s operating profit, and going by the same, the overall operating profit will double to Rs 60,570 crore in FY21 from Rs 29,450 crore in FY19.

The tariff hikes would accelerate SIM consolidation and curb subscriber additions, it added.

On the AGR, it said its base-case assumes a payout of Rs 50,000 crore in license fee arrears by the industry.

“Any additional liability will stretch their balance sheets and necessitate fresh equity infusion and support from sponsors to maintain credit profiles,” another Crisil director Nitesh Jain said, adding he has not factored in the 5G spends.

First Published: Mon, December 09 2019. 20:30 IST

Source: Business Standard

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PSBs turn profitable in Apr-Sep FY20, post aggregate profit of Rs 3221 cr

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State-run lenders had posted aggregate operating profits during 2017-18 and 2018-19 of Rs 1,55,603 crore and Rs 1,53,871 crore respectively

(PSBs) returned to profitability in 2019-20, posting an aggregate profit of Rs 3,221 crore in the first half ending September, Minister of State for Anurag Singh Thakur said in Parliament on Monday.

PSBs had posted huge losses in 2017-18 and 2018-19 financial years due to heavy provisioning for non-performing assets and other contingencies, according to the minister.

State-run lenders had posted aggregate operating profits during 2017-18 and 2018-19 of Rs 1,55,603 crore and Rs 1,53,871 crore respectively.

However, they made aggregate provisions for NPAs and other contingencies of Rs 2,40,973 crore and Rs 2,35,623 crore in FY2018 and FY2019, respectively, he said in a written reply in Lok Sabha.

This resulted in aggregate net losses of Rs 85,370 crore and Rs 81,752 crore in 2017-18 and 2018-19 respectively.

“Further, PSBs have returned to profitability in the current fiscal, reporting an aggregate profit of Rs 3,221 crore in the first half of the current fiscal,” Thakur said.

Citing data of the Reserve Bank on global operations of PSBs, he said their aggregate gross advances increased to Rs 68.76 lakh crore as on 31 March 2014 from Rs 25.03 lakh crore as on March end 2008.

As per RBI inputs, the primary reasons for the spurt in stressed assets have been observed to be, aggressive lending practices, wilful default/loan frauds/corruption in some cases, and economic slowdown, the minister said.

He was responding to a question whether the losses in public and private sector have been caused by increasing frauds.

The Asset Quality Review (AQR) initiated in 2015 by the RBI for clean and fully provisioned bank balance-sheets revealed high incidence of non-performing assets (NPAs), the minister said.

The RBI has issued various guidelines on safeguards on frauds, misappropriation, embezzlements and defalcation of funds for Urban Cooperative (UCBs), he added.

“Further, a reporting mechanism has also been put in place by RBI, exclusively to monitor frauds reported by UCBs.

“UCBs have also been advised to constitute a special committee on frauds headed by the chairman for monitoring and following up cases of frauds involving amounts of Rs 1 crore and above exclusively, while audit committee of the board is required to monitor all the cases of frauds in general.”

He said the government has initiated host of measures to prevent frauds and as per inputs received from PSBs, they impose penalty against erring officials after due process including dismissal/removal from service/compulsory retirement from service among others.

Further, where an element of fraud is observed, complaint is lodged with the police or the Central Bureau of Investigation, he added, citing banks’ input.

First Published: Mon, December 09 2019. 20:35 IST

Source: Business Standard

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