MSE News: Premium bond interest rate boosted to 1.5%

Former_MSE_Dan

This is the discussion thread for the following MSE News Story:

"Premium bond holders will soon see their chances of winning increase, as the prize fund 'interest rate' will rise from 1% to 1.5% from 1 Oct..."

Read the full story:
Premium bond interest rate boosted to 1.5%

anortonuk

Looking at Martin's article, for higher rate interest payers, £30 interest in a normal interest paying account is only £18 - while that is better than £15 and guaranteed, there is always an element of gambling which might be worth it.

Former_MSE_Dan

Yep, our full line from the article is this

Look at Premium Bonds with a clinical financial eye and they’re only worth considering as a serious place to put savings, if you’re a higher rate taxpayer, who has used up your Cash ISA allocation.


Yet for those who like a flutter, as Premium Bonds do protect your cash, it's fine to put a non-significant portion of your money in them, more for fun than returns. However before deciding, use the calculator to look at the real odds; and if you’re willing to take the gamble after that – then it’s fine.