MSE News: NS&I to increase Premium Bond prize rate to 4.65%

MSE_Chris_O

NS&I will increase its Premium Bond prize-fund rate to 4.65% from 4% for its September 2023 draw and beyond, with an extra £66 million in prizes up for grabs. This latest increase – the eighth we've seen in just over a year – is to the highest rate since March 1999. The odds of winning will also increase from 22,000 to one to 21,000 to one.

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'NS&I to increase Premium Bond prize rate to 4.65%'

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ChilliBob

Nice, good timing for my wife to get back into Premium bonds and September to be her first draw! 

Albermarle

Thread already running 
NS&I raises interest rates — MoneySavingExpert Forum

Murphybear

The odds of winning will go down to 22k to 1.  So if you have £22k of PSBs your chances of winning at least one prize are actually very high.  When I had £13k of bonds I won something nearly every month and quite often 2 prizes.  None of them were more than £25 but the equivalent interest I got was higher than ISAs.  My luck may have been above average.

There’s nothing more exciting than checking the app each month to find out if I’ve won something

CompulsiveSaver

I will keep my £50K in there for another month or two, I just wish they would put it all in £25 prizes to get best return; there would still be an element of luck but better chances of getting more each month.

RedImp_2

Says the odds of winning will increase……
Must admit my gut feel was the odds have decreased but I guess you could read it the other way

Sg28

RedImp_2 said:

Says the odds of winning will increase……
Must admit my gut feel was the odds have decreased but I guess you could read it the other way

They are confusing odds and probability.

If the odds of winning increase = less chance of winning

Probablity of winning increase = more chance of winning. 

Seeing as they quote 22000/1 to 21000/1 they clearly talking about odds so it should be decrease. 

But that just sounds wrong doesn't it.

MX5huggy

CompulsiveSaver said:

I will keep my £50K in there for another month or two, I just wish they would put it all in £25 prizes to get best return; there would still be an element of luck but better chances of getting more each month.

The £25 prize is slowly being killed off I expect it to disappear fairly soon if further rate changes happen. It was.a fairly new addition to prizes when rates fell. 

hpas251

ChilliBob said:

Nice, good timing for my wife to get back into Premium bonds and September to be her first draw! 

Premium Bonds must be held for an entire calendar month to be eligible for the draw. Therefore, if your wife buys them now her first draw will be October.

eskbanker

CompulsiveSaver said:

I will keep my £50K in there for another month or two, I just wish they would put it all in £25 prizes to get best return; there would still be an element of luck but better chances of getting more each month.

Depends what you mean by the bolded wording about what's 'better' or 'best' - do you feel that, say, four £25 prizes are 'better' than one £100 one?

Sg28

CompulsiveSaver said:

I will keep my £50K in there for another month or two, I just wish they would put it all in £25 prizes to get best return; there would still be an element of luck but better chances of getting more each month.

The lower the value of the prizes the less variation there will be from the overall rate paid. 

You could go all the way to paying the whole prize fund in £1 prizes but that will mean the vast majority would be getting very near to the headline rate. Which would defeat the object.