Premium Bond Winner ?

Primrose

I see prizes are going to be reduced in April in line with reduced interest rate..  Fort those who have tax liabilities on their savings I guess premium bonds with their tax free prizes are still a reasonable punt.

eskbanker

Primrose said:

I see prizes are going to be reduced in April in line with reduced interest rate..  Fort those who have tax liabilities on their savings I guess premium bonds with their tax free prizes are still a reasonable punt.

It depends - obviously any comparison needs to recognise the tax-free status of PB winnings, but any such evaluation needs to be repeated whenever there's a change on either side, so it's not a given that the answer is the same both before and after a reduction in the PB rate.

polymaff

GalacticaActual said:

From the April 2025 draw, the prize fund rate will change to 3.80%, down from 4.00%.
However, the odds of winning will remain the same at 22,000 to 1.

Also:

• Direct ISA interest rate increasing from 3% to 3.50%, effective immediately
• Direct Saver and Income Bond rates decreasing from 5th March 2025

With Inflation at 3.86% - yes, not 2.96% - we all lose.

RedImp_2

polymaff said:

GalacticaActual said:

From the April 2025 draw, the prize fund rate will change to 3.80%, down from 4.00%.
However, the odds of winning will remain the same at 22,000 to 1.

Also:

• Direct ISA interest rate increasing from 3% to 3.50%, effective immediately
• Direct Saver and Income Bond rates decreasing from 5th March 2025

With Inflation at 3.86% - yes, not 2.96% - we all lose.

Which measure of inflation is that?

polymaff

RedImp_2 said:

polymaff said:

GalacticaActual said:

From the April 2025 draw, the prize fund rate will change to 3.80%, down from 4.00%.
However, the odds of winning will remain the same at 22,000 to 1.

Also:

• Direct ISA interest rate increasing from 3% to 3.50%, effective immediately
• Direct Saver and Income Bond rates decreasing from 5th March 2025

With Inflation at 3.86% - yes, not 2.96% - we all lose.

Which measure of inflation is that?

The ONS's preferred index - the CPIH.

polymaff

Not to mention the totally immoral NS&I assertion:

"with the odds remaining at 22,000 to 1."

Reminds me of that other immoral chancer, Harold Wilson's statement about "the pound in your pocket"

eskbanker

polymaff said:

Not to mention the totally immoral NS&I assertion:

"with the odds remaining at 22,000 to 1."

Go on then, I'll bite - in what way do you consider that to be a "totally immoral" assertion?

Kim_13

It did strike me that there are actually slightly more prizes up for grabs, driven by the increase in £25’s - but presumably not enough to noticeably move the dial odds wise. I can’t remember a time when the odds weren’t quoted in whole thousands to 1 or x,500 to 1.

eskbanker

Kim_13 said:

It did strike me that there are actually slightly more prizes up for grabs, driven by the increase in £25’s - but presumably not enough to noticeably move the dial odds wise.

It's the other way round - the number of prizes will be calibrated in order to equal the number of bonds in the draw divided by 22,000.

The (estimated) increase in number of prizes is driven by the anticipated growth in numbers of bonds in the draw - there were a billion more in January's draw than December's, for example....

polymaff

eskbanker said:

polymaff said:

Not to mention the totally immoral NS&I assertion:

"with the odds remaining at 22,000 to 1."

Go on then, I'll bite - in what way do you consider that to be a "totally immoral" assertion?

" the odds remaining [the same]" - the odds of what?  NS&I don't say - that's immoral.  Immoral also to hint at 'so don't worry' - an exact match for Wilson's 1967 attempt to deceive the public.

“From now on, the pound abroad is worth 14% or so less in terms of other currencies. That doesn’t mean, of course, that the pound here in Britain, in your pocket or purse or in your bank, has been devalued.”

RPI bumped up by over 2% around November 1967. Your income from PBs will fall as a result of the upcoming  changes.  ANY attempt to not tell it as it is is immoral.