When Bonus Bonds were introduced in 1970 the first prize was $10,000 - a lot of money back then. The first prize now is a whopping $1 million! Since 1970, Bonus Bonds has paid out over $1.8 billion in over 52 million prizes (as at January 2010).
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Bonus Bonds is 40!
We're breaking out the birthday candles, because Bonus Bonds is forty this year!
Bonus Bonds were introduced by the government of the day as a way to encourage kiwis to save more. The first Bonus Bonds were sold in March 1970. Kiwis loved Bonus Bonds from the start, and they still do - it's New Zealand's largest retail unit trust, with over $2.8 billion held in trust for more than one million New Zealanders.
Of course, there have been a few changes since 1970. Here's a little 'then and now' look at the first forty years of a real New Zealand icon - Bonus Bonds.
The original Bonus Bonds were sold in $1, $2, $5, $10, $20, $50 and $100 units - the same denominations, and the same colour, as the currency of the time (they were also available in $500 units). Today, bondholders receive a certificate showing how many units they have purchased.
Winning Bonus Bond numbers are still randomly selected by a computer called ELSIE (Electronic Selection Indicator Equipment) - just as they were in 1970. ELSIE has changed a bit over the years though - she used to take up an entire room; now she's slimmed down to the size of a desktop computer. Must be all that hard work every month!
ELSIE was based on ERNIE, the computer used to draw winning Premium Bonds numbers in the U.K. In fact, ERNIE did the first few Bonus Bonds draws while ELSIE was learning the ropes.
The original Bonus Bonds centre employed up to 200 people and took up two floors of Dunedin's Chief Post Office building. Much of the space was used for filing cabinets which held records of every Bonus Bond issued. Each Bonus Bond that won a prize had to be retrieved, and the prize recorded, by hand. The filing cabinets were replaced by a computer database around 1984, making the process much less labour intensive. The Bonus Bonds Centre is still in Dunedin, but it's a bit smaller due to the efficiencies - nowadays around 14 people work there.
ELSIE was a real drawcard in the early days. People used to gather in a special theatre in the Chief Post Office building and watch the monthly prize draws!
Fashions have changed a bit since 1970. And just as New Zealanders have changed their look over the years, so has Bonus Bonds.
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