NS&I to increase premium bonds prize fund rate from 1.00% to 1.40%

jimexbox

Cashed in a few months ago. Not too shabby now if you're hitting your PSA.

Myself, I'll be moving cash around as base rates filter through. 

LeafGreen

Albermarle said:

grahamgoo said:

refluxer said:

What would that take the realistic return to for someone with a large holding and average luck ? 1.2% ? 1.3% ?

The odds of a single bond winning are now 24,500:1.  So if you had £49,000 of bonds you could expect to get 2 prizes per month on average.  The vast majority of these will be £25 each, that works out to 1.22% (with a slight chance of getting a bigger prize)

With the £49K , you would hope to pick up the odd £50 or £100 ( instead of £25) maybe once every couple of years, and one £500 every 25 years , so probably slightly more than 1.22% on average. About 1.28% for a long term holder of the full amount and maybe 1.25% for most.
After that I think you just need to be very lucky !

Yes true, I maxed out 7 years ago and think I got a £50 prize once or twice in that time, and a few years earlier I got £1000 (can't remember what the rate was back then but guess it was much higher than now)

Albermarle

grahamgoo said:

Albermarle said:

grahamgoo said:

refluxer said:

What would that take the realistic return to for someone with a large holding and average luck ? 1.2% ? 1.3% ?

The odds of a single bond winning are now 24,500:1.  So if you had £49,000 of bonds you could expect to get 2 prizes per month on average.  The vast majority of these will be £25 each, that works out to 1.22% (with a slight chance of getting a bigger prize)

With the £49K , you would hope to pick up the odd £50 or £100 ( instead of £25) maybe once every couple of years, and one £500 every 25 years , so probably slightly more than 1.22% on average. About 1.28% for a long term holder of the full amount and maybe 1.25% for most.
After that I think you just need to be very lucky !

Yes true, I maxed out 7 years ago and think I got a £50 prize once or twice in that time, and a few years earlier I got £1000 (can't remember what the rate was back then but guess it was much higher than now)

Over 25 years ago I won a £500 prize. Although I had less bonds then, as you say the prize rate was probably a lot higher.
Must be due another one soon !

S_uk

Knowing my luck I'll now win nothing in the next draw 

Gary1984

I've stuck with PB so glad the rate's competitive again. Being tax free so no need to put on a tax return and my laziness to get an extra 0.5% probably explains my intransigence. And you just never know...

ranciduk

Yay 

was actually considering cashing them all in

instead, I’ve just bought some more

(probably won’t win a bean for 6 months now...)

polymaff

seen as an investment the new rate means up to 1.26% - the nearer your holding is to £50k, the nearer you'll be to 1.26%.

The tax-free interest means that, for 20% taxpayers this looks like a taxed 1.575%, for  40% taxpayers it looks like a taxed 2.1%

S_uk

I wonder if they'll increase the rate again before the end of the year?

ranciduk

I bought some bonds late last night via my debit card 

the balance on my premium bonds account in NS&I website has reflected this increase ok

however, my bank is still showing the payment as ‘Pending’ 

does this mean NS&I haven’t actually taken the money for some reason? Does anyone know if they sometimes take a couple of days before they take the pending payment?

Daliah

ranciduk said:

I bought some bonds late last night via my debit card 

the balance on my premium bonds account in NS&I website has reflected this increase ok

however, my bank is still showing the payment as ‘Pending’ 

does this mean NS&I haven’t actually taken the money for some reason? Does anyone know if they sometimes take a couple of days before they take the pending payment?

This is normal. Takes about 3 working days to come off your current account.