Windfall Bond Changes

gizz_10

Seems there are some significant changes to the Windfall Bond coming from the 1st October 2024

https://www.familybuildingsociety.co.uk/savings/windfall-bond/windfall-bond-changes-2024

Anyone got any thoughts on whether this is for the better or worse?  I've had mine since 2016 and I have only once won £1k.  Meanwhile I see some of the same names in the prize winners lists again and again.

At the moment the interest rate has been high so I haven't been too fussed about moving, so I need to determine if these changes will be better or worse. Any thoughts from those in the know?

gt94sss2

Looks like there will be more smaller prizes and that Family Building Society are getting ready to cut interest rates on the account.

The monthly prize pot will also be smaller and they will also give less notice of interest rate changes than at the moment.

The only benefit I can see is that under the new rules they won't give prizes to "blank tickets"

subjecttocontract

Surely more smaller prizes means there is more chances of a win each month.
We're already getting paid 5.25% interest on the value of the bonds.
I see the changes as an improvement.

gt94sss2

If you read between the lines, they are getting ready to lower the interest rate to below the base rate but yes, more lower value prizes.

Also looks like they are putting the account back on the market in August 

subjecttocontract

I bought my Family BS bonds when base rate was 0.5%. As they pay interest at base rate they have been a good choice. The bonds cost £10,000 each, I've never won anything but the interest payments alone have made them worthwhile.

gt94sss2

Email received today

From 1 February 2025, the rate of interest payable on your Windfall Bond will be set at 1% below the prevailing Bank of England Bank Rate. This means that, at current Bank of England Bank Rate, your Windfall Bond will pay interest at 3.75% gross AER^ from 1 February next year. 

subjecttocontract

I've got a while to think about it but at the moment I'm leaning towards cashing in and putting the proceeds in a fixed rate bond.

RosieRooBear

subjecttocontract said:

I've got a while to think about it but at the moment I'm leaning towards cashing in and putting the proceeds in a fixed rate bond.

I’m thinking of cashing in to after the December draw so I get the funds before February 1st to fund my regular savers. Can always rebuy another in the future when they are back on sale if I want to.

poppystar

I may hang on until the end of this financial year to push acccumulated interest into the next one. Of course if I win something between now and then I may be tempted to stay especially as other interest rates are dropping and I didn’t get round to opening more than three bonds before they withdrew them. 

gizz_10

I've had mine since 2016 and only ever won £1k.  I used to enjoy receiving the winners list every month and perusing to see if my name was there - even when it wasn't it was still a bit exciting.  Now they've stopped publishing that as well, all the excitement has gone. 

subjecttocontract

I've decided to cash mine in & just submitted my 35 days notice to Family BS yesterday.and
I'll put the money into fixed term deposits which will pay better than 3.75%.