Premium Bond Prizes Take a Nosedive

Oblivion

It was inevitable given the rapid fall in bank rate, but the news is about as welcome as a f*rt in a lift ....

"The number of Premium Bond prizes is being reduced following the recent cut in the Bank rate to 3%.

National Savings & Investments (NS&I) said the total Premium Bond prize payout would drop from £87.8m this month to about £57m in January 2009.
The number of Premium Bond prizes will fall from 1.54 million to 1.1 million.
There will still be two £1m jackpot prizes a month, but the overall odds of winning a prize have risen from 24,000-to-1 to 36,000-to-1 per £1 bond. Someone who had invested the maximum of £30,000 in Premium Bonds will now win, on average, 10 prizes a year, NS&I says."

I was about to buy another block of £2k, but I'm having second thoughts now

Dave.

Milarky

My theory is that the gov't secretly moved the thirty-some billions saved in PBs from the National Savings and Investments account to the Northern Rock one last September...

tomstickland

They specify the equivalent interest rate on their site anyway.

Gorgeous_George

tomstickland wrote: »

They specify the equivalent interest rate on their site anyway.

It's not an equivalent interest rate.

Will the MSE Calculator be amended or has it been doe already?

(goes to have alook)

GG

rb10

So does this cut in prizes mean Premium Bonds will now be added to the 'Losings' list of accounts (where your money effectively shrinks in value due to inflation) at http://www.moneysavingexpert.com/savings/1147184319,20969 ?