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Premium Bonds prize win rate to extend but odds of winning still ‘relatively low’ | Personal Finance | Finance

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Savers might imagine that a 3 percent win rate makes the product competitive with some conventional savings account, with the highest easy accessibility saver currently paying 2.9 percent. But analysts at MoneySavingExpert warned there remains to be a “negligible” likelihood of winning the £1million jackpot.

Individuals with Premium Bonds are entered right into a monthly prize draw slightly than earning interest on their Bonds, with two £1million jackpot winners every month.

The chances of winning will remain the identical at 24,000 to 1, but there will likely be greater than thrice as many prizes between £5,000 and £100,000 in the subsequent draw.

Savings experts warned that although savings accounts pay a continuing rate of interest, Premium Bond holders risk not winning any prizes.

Chris Collier, senior analyst at MoneySavingExpert, wrote in an article on the group’s website: “You are actually more likely to get quite rather a lot lower than 2.2 percent or 3 percent, and there is a negligible likelihood of winning one million.

“When you know and also you’re okay with this, then investing in Premium Bonds is not a nasty plan.”

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The group estimated the variety of £100,000 prizes within the January draw will go up from 18 to 56, in comparison with December.

Figures from the group suggest the variety of £50,000 prizes could go up from 36 to 112, while the variety of £25,000 prizes will go up from 36 to 112.

People can check in the event that they have won a prize using ther prize checker on the NS&I website, via the app or using an Alexa device.

This month’s £1million jackpot winners got here from the Scottish Highlands and Islands and Wandsworth.

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Winners can reinvest their funds in additional Bonds, increasing their likelihood of winning in the long run.

Other recent figures from MoneySavingExpert showed there have been hundreds of thousands of unclaimed prizes, with greater than 1,500 value £1,000 or more.

The statistics showed there have been five unclaimed prizes with £100,000 and nine value £50,000.

Winners of 11 prizes value £25,000 have also yet to gather their money, while 37 prizes for £10,000 have still not been claimed, together with 69 prizes value £5,000.

READ MORE: NS&I pronounces December 2022 Premium Bonds prize winners

There have been unclaimed prizes that went back to the Nineteen Sixties, including one prize for £1,000 from the September 1969 draw.

Martin Lewis, founding father of MoneySavingExpert, recently spoke about what number of Bonds an individual would wish to purchase to have an excellent likelihood of winning, on his ITV show.

He used a probability calculator to point out individuals with “typical luck” would get nothing with an investment as much as £1,000.

Typical luck refers back to the median average of those that have won, whereas the prize fund is the mean average.

He said an individual could win £1,000 with £50,000 in Bonds, which is a two percent increase, still lower than the highest easy accessibility account.

Mr Lewis said: “So with typical luck, Premium Bonds win lower than the easy accessibility they usually win rather a lot lower than fixed accounts.

“Most individuals with money in Premium Bonds don’t do it for the short term, they do it for the long run.”

Savers can money of their Premium Bonds at any time without penalty. In keeping with NS&I, it takes up to a few banking days for the cash to achieve your account, unless you’ve elected to money in after the subsequent draw.

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