They just emailed me to tell me they're changing the interest rate on the websaver a/c to 5.5% from 1/May. They sort of forgot to mention that this is a reduction from the current 5.65% (all numbers AER).
Looks like 'game over' then. I guess they spent all their money on advertising and sponsoring F1 Grand Prixs .. nothing left for savers.
Probably going to put my savings in premium bonds for a bit. See what happens.
I'm increasingly sceptical about PBs. I know that in theory the prize distribution is completely random, but I've had curious beginner's luck on two occasions.
About ten years about I had 5k in savings and put them into PBs. First eligible month they earned 2x50. Next six months, nothing. Then I had to withdraw them to help out a family member. Last year I again put 6k into PBs. First eligible month... 2x50. Nothing in the last seven months. Ok, hardly a scientific study, but it ties in with many similar tales I've heard.
Still, there are an awful lot of PB holders, and you tend to pay attention to things which fit your experience.
Andrew McP
I got the same email, if as expected the BoE increases rates next month I guess there is no chance ING are going to increase the web saver rate, so a double whammy.
Andy
I'm getting the same suspicions here. I've been keeping a careful track of what's been won and when. There's been a highly dubious run of 6 consecutive blank months after some lucrative early months - I'll check the odds when I've a moment or three.
Wasn't there a suggestion recently that it would be better to invest the PB capital in a high-rate savings account, and gamble the interest on the lottery? Has anyone done comparative sums?
They'd be dire, remember that the lottery prize fund is only ~50p for each
1 ticket before you even start talking about the odds, so you can consider that the marginal tax take before the game even begins.You could maybe expect an average 20p return on each 1 'invested' in the lottery, it's the proverbial idiots tax.
I prefer the more charitable "hope tax" on a good day. Though you could probably say the same about PBs really, in that the statistically low return means your paying for your chance of a bigger gain.
Andrew McP
Hrm, but at least the stake is safe and there is an actual yield with decent odds. The lottery is pure theft and false hope.
There again the BoE is letting inflation rip and all those PB's are busily eroding in terms of real purchasing power.
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