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' NS&I to increase Premium Bond prize rate to 4%'
MSE News: NS&I to increase Premium Bond prize rate to 4%
MSE_Petar
MSE Staff Posts: 313
MSE Staff
NS&I will increase its Premium Bond prizefund rate to 4% from 3.7% for its August 2023 draw and beyond, with an extra £30 million in prizes up for grabs. This latest increase – the seventh we've seen in just over a year – is to the highest rate since 2007. The odds of winning will also increase from 24,000 to one to 22,000 to one.
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There's now a greater chance of wining a £50 or £100 prize than a £25 on a max holding0

Just checked because of this post ........... kerching £500

I've got the maximum holding and have had £1125 in prizes so far this year. I'm very close to the iniquitous 40% tax rate. If that was in an interest bearing account I'd be at risk of losing £450 of it. My wife isn't a taxpayer so I gift money to her for her savings account and ISA (which she has because if I go first she will definitely become one). Suits me fine.0

datostar said:I've got the maximum holding and have had £1125 in prizes so far this year. I'm very close to the iniquitous 40% tax rate. If that was in an interest bearing account I'd be at risk of losing £450 of it. My wife isn't a taxpayer so I gift money to her for her savings account and ISA (which she has because if I go first she will definitely become one). Suits me fine.0

fidaa said:datostar said:I've got the maximum holding and have had £1125 in prizes so far this year. I'm very close to the iniquitous 40% tax rate. If that was in an interest bearing account I'd be at risk of losing £450 of it. My wife isn't a taxpayer so I gift money to her for her savings account and ISA (which she has because if I go first she will definitely become one). Suits me fine.
0 
badger09 said:fidaa said:datostar said:I've got the maximum holding and have had £1125 in prizes so far this year. I'm very close to the iniquitous 40% tax rate. If that was in an interest bearing account I'd be at risk of losing £450 of it. My wife isn't a taxpayer so I gift money to her for her savings account and ISA (which she has because if I go first she will definitely become one). Suits me fine.
The taxed return from a savings account might also be higher than the taxfree return from PBs. There is no guarantee that you win anything in PBs. Pot luck, basically.
Having said this, I also keep the max in PBs, for reasons outlined by @datostar
0 
So NS&I are still paying catchup... Shawbrook are now paying 4.35% and even the best ISAs are 4.1% (Coventry).
Does anyone else think they should just add £25 prizes? the £1 million is a nice marketing point, but there is almost no chance of winning it! so just keep a single million prize and vastly increase the £25 prizes, that way there is a much better chance of winning something! (yes, I did get less than £100 this month on the max holding ) which is what we are doing by putting our money in premium bonds.2
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