Tuesday, 23 July 2013
NS&I Cuts the Premium Bond Prize Fund
The changes will come into effect from 1st August, National Savings & Investments (NS&I), the Government organisation behind the bonds, confirmed today.
Lower chances of winning
As the overall prize fund is being reduced, there will be a smaller chance of winning on the Premium Bonds.
In July, the total value of the tax-free prizes was £57,099,325. This is predicted to fall to £49,321,500 in August.
And the total number of prizes will drop to 1,751,061, from 1,903,314.
NS&I says the change is happening because of falling interest rates on savings accounts. This has led to an increase in demand for the bonds and has put NS&I in danger of taking in more money than it needs to support the government's borrowing. » | lovemoney.com | Tuesday, July 23, 2013