Premium Bonds big win odds drop
January 3, 2008 by admin
Filed under News, News-Banking
The chances of winning big on Premium Bonds dropped yesterday. 
National Savings and Investments (NS&I) reduced the rate of return on its prize fund from 4 per cent to 3.8 per cent from the start of 2008, in response to December’s cut in the Bank of England’s base rate.
While the chances of winning– 21,000 to one per £1 bond – and the number of £1 million jackpot prizes remain the same, the spread between large, medium and small prizes will be skewed further towards small prizes of £50 and £100.
Million of Brits have money invested in Premium Bonds, totalling £36 billion.
Unlike other investments, there is no risk involved in the scheme – but unlike other savings products, there is no guarantee that investors will make anything at all.
The Times noted in 2007 that the chances of winning nothing at all with a £1000 Premium Bonds stake was 60 per cent, while the chances of getting a better-than-inflation return on £1,500 was around 20 per cent.
