Premium Bonds Article Discussion Area

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/82137939#Comment_82137939

I think they'd look at what proportion of holders are at the limit vs those that have room to add to their current holding first. If a substantial proportion still have room then increasing the limit won't help.

Eco_Miser

https://forums.moneysavingexpert.com/discussion/comment/82138830#Comment_82138830

The substantial proportion who still have room, mostly won't be increasing their holdings, but the smaller proportion who have maxed out their holding may well have substantial funds looking for a tax-free home. Depends on how small the latter group are, and how high the Treasury are willing to increase the limit.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82138830#Comment_82138830

It's reportedly about 6% of PB holders who have the maximum £50K, and obviously therefore 94% with headroom…

Johnjdc

https://forums.moneysavingexpert.com/discussion/comment/82138970#Comment_82138970

So a potential £28bn available from raising the limit to £70k.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82139169#Comment_82139169

There are a number of levers that they could pull if they were keen to increase the number of bonds in circulation, but I'm not aware of any change to their 2026/27 net financing target (£11-19bn), progress against which is how they determine the calibration of the product's parameters, i.e. they're not driven by a desire to simply maximise income for the sake of it.

The NS&I net financing target is a tiny fraction of the overall picture relative to gilt issuance:

https://www.gov.uk/government/publications/debt-management-report-2026-27/debt-management-report-2026-27#the-debt-management-offices-financing-remit-for-2026-27

Swipe

Not sure I'd want to put more than £50K in PBs. My returns are disappointing enough as it is.

Johnjdc

https://forums.moneysavingexpert.com/discussion/comment/82139282#Comment_82139282

I guess my point is that since they set their net financing target, the cost of borrowing in the gilt market has becoming significantly higher.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82139627#Comment_82139627

Yes, it's certainly not beyond the bounds of possibility that the NS&I net financing target is changed during the year and I'm pretty sure that it's been revised in-year before, but on the face of it that would just be a bit of deckchair rearranging unless increased radically.