2X£1,000,000 Pulling out of Premium Bonds

Sunbeam25

The number of £1m prizes is about to double without an increase is the prize fund. This means there will be a lot fewer small prizes. I'm about to sell most of my bonds (apart from the three £1 ones my mum bought me in 1960 'cos I'm a softie!!) Is anyone else thinking of doing the same, or are you thinking of investing more now that you can, and hoping the prize fund is increased?

ariba10

Already started.

The odds were long enough with only one million pound prize but two???

ColdIron

I bailed on PBs several years ago and don't regret it, they're poor value for most people even before these changes

Sunbeam25

I liked the dream of a big win, and got >1% returns so not a total disaster, but I think I'll throw the odd £1 away on the lottery for the dream part, and invest the rest properly now.

marlot

We've sold ours. There was enough income to make them interesting, but not any more.

sorcerer

i actually increased my holdings to 40,000 today, and will increase them again to 50,000. So I guess my answer is no :-)

Archi_Bald

sorcerer wrote: »

i actually increased my holdings to 40,000 today, and will increase them again to 50,000. So I guess my answer is no :-)

I'll put another £10K in myself later this month, to top up to £40K. No point doing so now since anything credited in June will be in the August draw, which is the first draw for the 2 x £1m.

Glad to see people are dropping out, means my chances will be increased from god knows how many billion to one to..........god knows how many billions minus a tad to one, lol.

PBs aren't where you want to put your money if you don't have a lot more money elsewhere. Worth reading the MSE PB article http://www.moneysavingexpert.com/savings/premium-bonds

If you still want PBs after reading that, best of luck!

Caprylate

The odds of winning a prize still remains the same at 26,000:1. The additional million pound prize is funded by the increase in the cap from £30,000 to £40,000.

grey_gym_sock

i cashed in my £5 holding when they introduced the first £1m prize

scragend

Caprylate wrote: »

The additional million pound prize is funded by the increase in the cap from £30,000 to £40,000.

Although that assumes that people who already hold £30,000 will put the extra £10k in.

If they didn't, then there wouldn't be an increase in the fund therefore they would be paying more prizes with the same size fund, so the chance of winning would go down.

PeacefulWaters

scragend wrote: »

Although that assumes that people who already hold £30,000 will put the extra £10k in.

If they didn't, then there wouldn't be an increase in the fund therefore they would be paying more prizes with the same size fund, so the chance of winning would go down.

There are already numerous posts on these pages where people have said they will top up their holdings to £40k.

It's a reasonable assumption that this will happen.

Most people with £30k holdings will have liquid savings elsewhere, probably earning less than 1.3% and also being subject to tax.