Premium Bonds Article Discussion Area

masonic

MikemseForum said:

Interestingly the reply goes on to state that "NS&I is sensitive to changing the investment limit in a way that disadvantages other banks and firms that offer rates of interest with similar returns to Premium Bonds."  It seems that, by design, Premium Bonds will not compete with other banks.

That and NS&I has net financing targets and it will reduce the prize rate to balance larger inflows than it needs. Such as if those at the limit were able to increase their holdings.

LeafGreen

MikemseForum said:

The £50k limit on individual Premium Bond holdings was set in 2015,  with purchaing power equivalent to £75k today.

You could also say that in 2014 the limit was £30,000, which is equivalent to about £41,500 today, therefore the limit as it stands now is actually ahead of inflation.

Dizzycap

Premium Bond Prize funds reducing from 4.8% to 4.6% in August...........

NS&I announces Premium Bonds change affecting millions of savers

Swipe

Dizzycap said:

Premium Bond Prize funds reducing from 4.8% to 4.6% in August...........

NS&I announces Premium Bonds change affecting millions of savers

You mean 3.6%. I'd jump at 4.6% 

ColdIron

Yes, it's 3.60%. NS&I announcement

https://nsandi-corporate.com/news-research/news/new-prize-fund-rate-august-premium-bonds-draw

Richmc

I'm mega lucky, I'm on 5.5% with 50K holding, PBs are a fun way to save in my opinion.

subjecttocontract

The premium bonds official rate of return can be viewed in the same way as the official rate of inflation. It only applies if your position aligns with theirs. It's just an indication of what it could be, its not necessarily what you get.

Swipe

Richmc said:

I'm mega lucky, I'm on 5.5% with 50K holding, PBs are a fun way to save in my opinion.

Until you get 3 blanks in a row with a max holding. Then they become pretty depressing.

polymaff

subjecttocontract said:

The premium bonds official rate of return can be viewed in the same way as the official rate of inflation. It only applies if your position aligns with theirs. It's just an indication of what it could be, its not necessarily what you get.

You are right to write/imply  that the official rate of inflation may never be the same as your own.

What you "win" with PBs, though, is a direct function of  the "official rate of return".

Unfortunately, another factor is  luck. 

fuzzzzy

Swipe said:

Richmc said:

I'm mega lucky, I'm on 5.5% with 50K holding, PBs are a fun way to save in my opinion.

Until you get 3 blanks in a row with a max holding. Then they become pretty depressing.

Yes it just becomes the monthly disappointment.