OT Premium bonds

Dec 07, 2020 Last reply: 5 years ago 41 Replies
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The prize money is based on the interest rate the Government pay on the the capital (the bonds everyone holds). Very recently that interest rate was slashed[1] hence the amount in the prize fund fell. The minimum "prize" is £25 so as a result of the interest rate fall there are fewer £25 wins.

Over the years there have also been changes to how the prize fund is split, possibly to give more £25 wins rather than for larger amounts.

[1] N&I recently slashed rates on all of their products and in most cases are not providing any return on investors money (0.01% interest rate). There are many reports that as a result there have been mass request from people to withdraw funds and N&I cannot cope with this demand - web site continually crashing and support phone lines not answered etc.

Possibly because they were still paying reasonable rates until 23 November and this is the date when people wanted to move their funds.

And it may have gone more smoothly if it wasn't for sudden announcement of another lockdown soon before.

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