Premium Bond Winner ?

westv

I wonder if the "interest" rate will move up another notch anytime soon.

Flick85

My 2nd and last month (probably ever) of having £50k in bonds and I won a whopping £25 after £0 last month, Have now withdrawn it all into a savings account as need to transfer to solicitor for house completion in a few weeks. Ah well, guess luck wasn’t on my side!

cricidmuslibale

westv said:

I wonder if the "interest" rate will move up another notch anytime soon.

My prediction fwiw is that there will need to be a further increase to the prize interest rate either in time for the December draw or more definitely either for the January or the February draw at the very latest. Especially as it’s likely that the Bank of England base rate will go up a little bit more on December 15 and savings interest rates will by and large increase a little more towards the end of December / at the start of January.

If NS&I were to maintain the current prize interest rate well into the New Year, they would have to accept that quite a few present Premium Bond holders would cash in some or all of their bonds and move their money to better interest rate accounts outside of NS&I. This clearly is not at all good for HM Treasury’s overall level of funding!

cricidmuslibale

westv said:

I wonder if the "interest" rate will move up another notch anytime soon.

Also if, hopefully when, the prize interest rate does move up another notch, I would be very grateful if NS&I would increase the odds of winning a prize from the current 24000:1 to something nearer to 20000:1. They could easily do this by either increasing the number of £25 prizes per draw or further increasing the number of £50 and £100 prizes per draw. This has the added benefit of making it slightly less likely for a PB holder with a full £50,000 holding to be unlucky enough to win nothing at all in any one draw.

eskbanker

cricidmuslibale said:

If NS&I were to maintain the current prize interest rate well into the New Year, they would have to accept that quite a few present Premium Bond holders would cash in some or all of their bonds and move their money to better interest rate accounts outside of NS&I. This clearly is not at all good for HM Treasury’s overall level of funding!

It's not as simple as that - as discussed previously on this thread and others, the rate for premium bonds and other NS&I products isn't driven by the desire to compete with other savings providers but by NS&I's net funding target, i.e. they're not looking to maximise net funding but to bring it in within the target range, which this year is £6bn +/- £3bn.  The half-year results show £3.4bn of net funding so far, so slightly ahead of the curve, and the number of PBs in circulation has continued to rise month on month despite savings rates elsewhere pulling further away, so it seems unlikely that NS&I are unduly concerned....

cricidmuslibale

eskbanker said:

cricidmuslibale said:

If NS&I were to maintain the current prize interest rate well into the New Year, they would have to accept that quite a few present Premium Bond holders would cash in some or all of their bonds and move their money to better interest rate accounts outside of NS&I. This clearly is not at all good for HM Treasury’s overall level of funding!

It's not as simple as that - as discussed previously on this thread and others, the rate for premium bonds and other NS&I products isn't driven by the desire to compete with other savings providers but by NS&I's net funding target, i.e. they're not looking to maximise net funding but to bring it in within the target range, which this year is £6bn +/- £3bn.  The half-year results show £3.4bn of net funding so far, so slightly ahead of the curve, and the number of PBs in circulation has continued to rise month on month despite savings rates elsewhere pulling further away, so it seems unlikely that NS&I are unduly concerned....

You missed the words ‘at the moment’ at the end of your final sentence. Let’s wait and see, shall we?!

Besides, that target range of net funding, £6bn +/- £3bn, was set several months ago pre Truss / Kwarteng when state finances were in a considerably more healthy state than they are at present. Is it not entirely possible, therefore, that the £6bn figure could be revised upwards, quite possibly on or soon after November 17?!

eskbanker

cricidmuslibale said:

eskbanker said:

cricidmuslibale said:

If NS&I were to maintain the current prize interest rate well into the New Year, they would have to accept that quite a few present Premium Bond holders would cash in some or all of their bonds and move their money to better interest rate accounts outside of NS&I. This clearly is not at all good for HM Treasury’s overall level of funding!

It's not as simple as that - as discussed previously on this thread and others, the rate for premium bonds and other NS&I products isn't driven by the desire to compete with other savings providers but by NS&I's net funding target, i.e. they're not looking to maximise net funding but to bring it in within the target range, which this year is £6bn +/- £3bn.  The half-year results show £3.4bn of net funding so far, so slightly ahead of the curve, and the number of PBs in circulation has continued to rise month on month despite savings rates elsewhere pulling further away, so it seems unlikely that NS&I are unduly concerned....

You missed the words ‘at the moment’ at the end of your final sentence. Let’s wait and see, shall we?!

Besides, that target range of net funding, £6bn +/- £3bn, was set several months ago pre Truss / Kwarteng when state finances were in a considerably more healthy state than they are at present. Is it not entirely possible, therefore, that the £6bn figure could be revised upwards, quite possibly on or soon after November 17?!

Sure, the goalposts can move, but the point I was making was that in itself a slowdown or even reduction in NS&I net funding, by virtue of less competitive products, isn't necessarily a bad thing, so the bolded wording above is a misconception.

janeskips2

hoc said:

Why Ernie?

eskbanker said:

hoc said:

Why Ernie?

https://www.nsandi.com/get-to-know-us/about-premium-bonds

inkydolphin said:

hoc said:

Why Ernie?

I ask myself that question most months 🙄

MX5huggy said:

The machine that generates the numbers is called ERNIE, for Electronic Random Number Indicator Equipment.

The sarcasm went over quite a few heads.

Just £25 on a full holding. Better than nothing last month. Since the change a few months ago I have not even earned 1% very far from the advertised 2.2%.

eskbanker

janeskips2 said:
The sarcasm went over quite a few heads.

Still going over (or perhaps under) mine, unless the poster actually meant "Why, Ernie?", the punctuation of which changes the meaning....

Arrietty

£100 win for me this month on maximum holdings.