There is no point in having a small number of premium bonds, argues Paul Lewis
where the interest is tax-free. I bet most of them have used up their personal savings allowance and pay higher-rate tax, so for them 3.72 per cent tax-free is equivalent to an instant-access account paying a taxable 6.2 per cent. No other savings account pays that much today. The wealthy know they are quids in if they have the maximum amount.
Going backwards that would mean buying £50,000 bonds in the Wars of the Roses and only now having an even chance of a £25,000 prize. And to expect £100,000 prize, of which there will be 90 in September, you would need to have bought your £50,000 bonds in the first Punic War between Rome and Carthage in the early third century BCE.
With 121 billion bonds out there, the odds of any bond winning one are worse than 60 billion to one each month. Even with the maximum £50,000 you would have to wait 100,000 years for an even chance of winning one. That long ago humans had just started having sex with Neanderthals. Despite small definitely being not good when it comes to premium bonds, NS&I cut the minimum purchase in February 2019 from £100 to just £25. If you buy that for a new-born relative they would have to wait until they were 70 to have an even chance of winning a prize. Pointless.
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