Out of luck?
Premium Bond cuts
Britain’s most popular savings vehicle, in which people have invested £66.7bn, is to cut its payout rates from May 1. As a percentage of all the money held, Premium Bond prize prizes will fall from 1.25pc to 1.15pc per year.
But the complex way in which monthly prizes are distributed – with two £1m jackpots per month as the biggest prizes, and more than two million £25 prizes paid – means the odds of winning with any £1 bond are tricky to calculate.
In total, 2,224,513 prizes of all values are currently paid per month. From May, this total will drop only slightly to 2,219,493. So the odds of any £1 bond winning any prize of any value will remain roughly constant at one in 30,000.
But in order to achieve the overall cut in payout, prizes in certain bands have been radically cut, as seen in the table below.
The biggest falls in the number of prizes apply to the £25,000, £10,000 and £5,000 bands. The number of the very smallest prizes of £25 has increased from 2.1 million to 2.2million. Prizes are distributed tax-free.
Where the number of prizes has fallen the odds of winning have lengthened.
The odds of any bond winning any prize will be roughly constant