Premium Bond Rates/ Prize Pot

Thomas12346

Is there any rhyme or reason to NS&I increasing the prize pot/ rates on Premium Bonds?

What is their track record with doing so? How often do they review? Do they typically keep up with the BoE base rate?

My Premium Bonds are currently dragging down my portfolio, but they work for my situation, as long as the rates down lag along too far behind the base rate.

LeafGreen

Pretty laggy I would say, I have got to the verge of binning mine but holding on to them for now due to the tax free status.

BOE base rate has increased 8 times since the end of last year.  PB prize fund has increased only twice.  
The full history of prize fund changes can be found here:- https://www.nsandi.com/historical-interest-rates

MX5huggy

Historical rates are here  https://www.nsandi.com/historical-interest-rates

you probably won’t see much relationship with base rate. 

The driver is NS&I’s net financing rate, this year they have a target of £6 billion plus or minus £3 billion. They generally hit this easily.

In the pandemic it was £35 billion so they offered market leading rates. To drag money in. 

They clearly review every month but generally stick with keep it the same. 

MikeJXE

Pretty poor premium bonds, my winnings amount to about 1.1 % so I'm pulling them out after the December draw