Premium Bonds odds are changing – NS&I explains when new odds will come into effect
Premium Bonds are a way some people may opt to save, with NS&I being backed by HM Treasury. Earlier this month, NS&I announced changes to a number of its interest rates, and one reduction will have an impact on Premium Bonds.
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The changes will take effect from the start of May, NS&I confirmed last month.
Currently, the odds of winning per £1 Bond number in the monthly Premium Bonds prize draw is 24,500 to one.
However, from May 1, the prize fund rate will reduce by 10 basis points from 1.4 percent to 1.3 percent, and this will affect the likelihood of Premium Bonds holders winning a prize.
From this date, the odds will drop to 26,000 to one per £1 Bond number – and this will affect the May 2020 prize draw.
Ian Ackerley, NS&I Chief Executive, said: “Reducing interest rates is always a difficult decision.
“We need to ensure our interest rates are set at an appropriate position against those of our competitors.
“These changes reflect NS&I’s requirement to strike a balance between the needs of our savers with taxpayers and the stability of the broader financial services sector.
“We believe our new rates offer our customers a fair return and the assurance of the 100 percent HM Treasury guarantee on all their holdings with NS&I.”
Earlier this month, the March 2020 prize winners were announced, with NS&I revealing some details about this month’s high value winners.
Among them were two jackpot winners, and while their identities were not fully unveiled, some information about them was published on the NS&I website.
First up was a jackpot winner from Norwich, with this person being female and having had £50,000 invested.
Meanwhile, a male from Cambridgeshire also scooped the jackpot.
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This March millionaire had £15,700 invested, NS&I revealed.
In total, there were more than 3.5 million prizes in the March 2020 prize draw.
The total prize fund was a whopping amount – with this exceeding £100million.
There was also six winners of the significant sum of £100,000, while 12 people were selected for a payout of £50,000 in this prize draw.
Premium Bonds cost £1 per Bond number, however the minimum investment is currently £25.
There is a limit as to how many Premium Bonds a person can hold too, with this being £50,000.
While the prizes won are tax-free, it’s important to be aware that NS&I points out that this is not a savings option for savers who want a regular income, are looking for guaranteed returns, or are concerned about inflation eroding their savings.
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