National Savings & Investments is messing with Premium Bond prize odds again - and it's blaming the Treasury

 
Emma Haslett
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Ernie The Premium Bonds Computer Goes On Display At Science Museum
Premium Bonds' odds are to be hiked (Source: Getty)

Three short years after the Premium Bonds prize fund was cut, get ready to do some more heavy fist-shaking: National Savings & Investments (NS&I) has decided to change the odds again - and it's blaming the Treasury.

Is there any end to the wrath George Osborne is to endure? In a statement today, NS&I said new requirements for net financing from the Treasury meant it had to cut odds to "manage demand ... and deliver positive value to taxpayers".

"It is always a difficult decision to reduce rates but downwards movements in interest rates across the cash savings market mean that our rates have risen in the competitor tables," added Jane Platt, NS&I's chief executive.

Read more: A new generation of private sector Premium Bonds - and four other ways to transform the UK

What does that mean for savers? From 6 June, the odds of winning on the Premium Bonds will rise from 26,000 to one to 30,000 to one.

Meanwhile, the total value of prizes will fall from £67.6m to £62.9m, while the total number of prizes will drop from 2.3m to 2m.

And the number of prizes worth more than £5,000 will fall from seven per cent of the prize fund to five per cent, while those worth £25 and upwards will rise from 88 per cent to 90 per cent.

How your Premium Bond odds look now

Value of prizes Number of prizes in March 2016 Number of prizes in June 2016 (estimate)
£1,000,000 2 2
£100,000 5 2
£50,000 12 5
£25,000 22 9
£10,000 53 24
£5,000 110 46
£1,000 1,352 1,257
£500 4,056 3,771
£100 18,503 64,198
£50 18,503 64,198
£25 2,267,978 1,879,199
Total: 2,310,596 2,012,711

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