NS&I will increase its Premium Bond prize-fund rate to 3.3% from 3.15% for its March 2023 draw and beyond, with an extra £15 million in higher-value prizes up for grabs. The odds of winning will remain the same at 24,000-to-one, but there will more prizes between £50 and £100,000 available.
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NS&I to increase the Premium Bond prize rate AGAIN to 3.3% – here's all you need to know
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NS&I to increase the Premium Bond prize rate AGAIN to 3.3% – here's all you need to know

MSE_Chris_O
Posts: 46 MSE Staff
2
Comments
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I think that the best way to think of PBs is that if you have a large holding you are buying two different parts. One part, 20p of each bond,is a lottery ticket which might win you up to a million, but probably won't. The other part, 80p of each bond will on average get a return of 3.3% from prizes of £100 and below. So if you don't win a big prize your return will average 2.64% on the full cost of the bond. As it's tax free this is quite competitive for those who have maxed out their personal savings allowance especially if they are higher rate payers. If you only have a small holding you should regard the bonds as buying raffle tickets with the potential interest foregone5
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webwiz said:I think that the best way to think of PBs is that if you have a large holding you are buying two different parts. One part, 20p of each bond,is a lottery ticket which might win you up to a million, but probably won't. The other part, 80p of each bond will on average get a return of 3.3% from prizes of £100 and below. So if you don't win a big prize your return will average 2.64% on the full cost of the bond. As it's tax free this is quite competitive for those who have maxed out their personal savings allowance especially if they are higher rate payers. If you only have a small holding you should regard the bonds as buying raffle tickets with the potential interest foregoneChuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0
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webwiz said:I think that the best way to think of PBs is that if you have a large holding you are buying two different parts. One part, 20p of each bond,is a lottery ticket which might win you up to a million, but probably won't. The other part, 80p of each bond will on average get a return of 3.3% from prizes of £100 and below. So if you don't win a big prize your return will average 2.64% on the full cost of the bond. As it's tax free this is quite competitive for those who have maxed out their personal savings allowance especially if they are higher rate payers. If you only have a small holding you should regard the bonds as buying raffle tickets with the potential interest foregone
?
I mean, it costs the taxpayer 3.3%, and most people earn 2.64% to subsidize this crazy lottery.0 -
English government lotteries to raise finance are as old as the Bank of England - 1694:
https://en.wikipedia.org/wiki/Bank_of_England
https://en.wikipedia.org/wiki/Million_Lottery
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EthicsGradient said:English government lotteries to raise finance are as old as the Bank of England - 1694:
https://en.wikipedia.org/wiki/Bank_of_England
https://en.wikipedia.org/wiki/Million_Lottery"Tradition is a guide and not a jailer."W. Somerset Maugham0 -
sgog said:webwiz said:I think that the best way to think of PBs is that if you have a large holding you are buying two different parts. One part, 20p of each bond,is a lottery ticket which might win you up to a million, but probably won't. The other part, 80p of each bond will on average get a return of 3.3% from prizes of £100 and below. So if you don't win a big prize your return will average 2.64% on the full cost of the bond. As it's tax free this is quite competitive for those who have maxed out their personal savings allowance especially if they are higher rate payers. If you only have a small holding you should regard the bonds as buying raffle tickets with the potential interest foregone
?
I mean, it costs the taxpayer 3.3%, and most people earn 2.64% to subsidize this crazy lottery.
It is not rationally logical, but human beings are a mixture of rationale and emotion.
Getting rid of PB' s would be unpopular.3 -
Albermarle said:sgog said:webwiz said:I think that the best way to think of PBs is that if you have a large holding you are buying two different parts. One part, 20p of each bond,is a lottery ticket which might win you up to a million, but probably won't. The other part, 80p of each bond will on average get a return of 3.3% from prizes of £100 and below. So if you don't win a big prize your return will average 2.64% on the full cost of the bond. As it's tax free this is quite competitive for those who have maxed out their personal savings allowance especially if they are higher rate payers. If you only have a small holding you should regard the bonds as buying raffle tickets with the potential interest foregone
?
I mean, it costs the taxpayer 3.3%, and most people earn 2.64% to subsidize this crazy lottery.
It is not rationally logical, but human beings are a mixture of rationale and emotion.
Getting rid of PB' s would be unpopular.0 -
Albermarle said:sgog said:webwiz said:I think that the best way to think of PBs is that if you have a large holding you are buying two different parts. One part, 20p of each bond,is a lottery ticket which might win you up to a million, but probably won't. The other part, 80p of each bond will on average get a return of 3.3% from prizes of £100 and below. So if you don't win a big prize your return will average 2.64% on the full cost of the bond. As it's tax free this is quite competitive for those who have maxed out their personal savings allowance especially if they are higher rate payers. If you only have a small holding you should regard the bonds as buying raffle tickets with the potential interest foregone
?
I mean, it costs the taxpayer 3.3%, and most people earn 2.64% to subsidize this crazy lottery.
It is not rationally logical, but human beings are a mixture of rationale and emotion.
Getting rid of PB' s would be unpopular.
In some sense, the government is telling us: if you want to exceed your savings allowance without taxation, you must participate in our lottery.0 -
sgog said:Albermarle said:sgog said:webwiz said:I think that the best way to think of PBs is that if you have a large holding you are buying two different parts. One part, 20p of each bond,is a lottery ticket which might win you up to a million, but probably won't. The other part, 80p of each bond will on average get a return of 3.3% from prizes of £100 and below. So if you don't win a big prize your return will average 2.64% on the full cost of the bond. As it's tax free this is quite competitive for those who have maxed out their personal savings allowance especially if they are higher rate payers. If you only have a small holding you should regard the bonds as buying raffle tickets with the potential interest foregone
?
I mean, it costs the taxpayer 3.3%, and most people earn 2.64% to subsidize this crazy lottery.
It is not rationally logical, but human beings are a mixture of rationale and emotion.
Getting rid of PB' s would be unpopular.
In some sense, the government is telling us: if you want to exceed your savings allowance without taxation, you must participate in our lottery.1
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