Premium Bond prizes Slashed

Premium Bond prizes Slashed

Premium Bonds holders were given bad news last week after it was revealed that there will be about 300,000 fewer prizes to be won each month

The move, which will come into effect in June, will see nearly £5 million cut from the prize fund, which means that the odds of winning, per each £1 invested, is slashed from 26,000-1 to 30,000-1.

Premium Bonds do not give interest to savers, instead entering members into a monthly prize draw, with every £1 invested put towards an entry.

More than 21 million people, correlating to about one in three of the UK’s population, will be affected. The changes will see the number of £100,000 prizes fall from five to two, and £25,000 from 22 to just nine.

There will also be 388,779 fewer £25 prizes each month as the number of the smallest reward on offer is cut from an estimated 2,267,978 to 1,879,199.

Eight of the ten prize bands below £1 million will see fewer winners, with the exception of £50 and £100. The ‘prize fund rate’ – the amount a typical saver with average luck will receive over a year – will also fall from 1.35 per cent to 1.25 per cent.

The value of prizes this month is £67.6million, but in June this will drop to £62.9million.

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