On 04/02/2021 16:17, Clive Arthur wrote:
On 04/02/2021 15:11, alan_m wrote:

The prize fund is currently 1% so £10K would generate £100 a year in
prizes.Â* On average, you could "win" a single prize approx every 3.5
months, which could be the million rather than £25. Prizes are tax free.

There's a fairly complicated analysisÂ* somewhere, but IIRC the upshot is
that a person with average luck and with the maximum £50k of bonds
should expect about 0.95% return in a year.Â* With £10k that falls to 0.75%.

The main reason seems to be that the big prizes are very rare - eg the
£1M prizes are fifty billion to one.

Here it is...
https://www.moneysavingexpert.com/sa...premium-bonds/



Also factor in (if you work on a % return) that the minimum prize they
pay out is £25, so if you work on the current prize rate of 1%
(https://www.nsandi.com/products/premium-bonds), you should aim to hold
£2500 of PB to give it a fair chance.

Probably why small bond holdings don't get much: 1% of £200PB is £2, so
you may have won, but it wouldn't pay (if less than £25).

Also, it's a prize rate, not an interest rate :-)