NS&I cut interest rates

So the word on the street is that this safe haven that guarantees not just the first £85k of your savings, but all of your savings, and pays 1.16% interest, is to reduce its rates to 0.01%

I can see lots of other savings providers doing similar to be fair. Could this be a time for Chip to capitalise?


See the other post on the Moneybox account discussion…

That’s income bond from December. Premium bonds are still at 1.14% based on winning numbers. Plus the chance of a million a month. But I agree good time for chip.

I’ve got more chance of flying to Mars than winning a million on premium bonds which is why I own £1 of them just to keep my account open…:crazy_face::joy:

Oh I didn’t realise that a quid was the minimum to enter the draw. I dropped in £25 thinking it was a better investment than a lottery ticket!

Comparative wise, I think there is a 1 in 9.3 chance of winning something on the lottery, and 1 in 30000 for PBs.

The plus side is that there is no risk of loss on premium bonds, so as a bet, not sure how to factor that in, but I like to think of it as I could have bought 12.5 lottery tickets, and only 1.5 of them statistically would have won something (and probably just a free ticket).

A lottery ticket costs £2, so compared to PBs you have a 2 in 30000 chance monthly, or an average of 1 in 1250 a year.

That doesn’t sound great, but inflation is what say 2%, so your true cost is 1/50th of the PB entry fee in reality, so your chances of a win based on risk are 1 in 25(1250/50).

I think that’s right, so holding premium bonds for a minimum of 2 and a bit years, you have the same odds of winning something, at a fraction of the cost.

I’m not sure that thought is statistically accurate, but its how I like to look at it :slight_smile:

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After saying that premium bonds are still at 1.14% it appears from December it will be going down to 1% still not bad but it increases the rate of winning from 1:24000 to 1:39000 change of a win now. :crazy_face:

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I’ve just a note from Marcus (who were not that long ago market leading) that their easy access account will be dropping to 0.7%.

If Chip can get some momentum and appear in a Martin Lewis newsletter or similar, we could see a big influx


I have a decent amount in a Marcus account and will look to move it to chip once the interest accounts become active.


I think many people are sitting on cash for the new account to open. I’m especially looking forward to the extra 2% bonus to be added from the investment round as interest right now is pretty bad. Plus reading the report that the bank of England may be getting ready for negative interest.

How do you get 2% bonus - remember that eats away at Chip’s warchest.

It sounds like you asking me how to get and then telling me not too :wink: You had to invest over £3000 in last year’s round. It was a bonus for investing and like all investment rounds there has been bonuses. Just found the image this explains it. :wink:image|639x500

Ha I don’t think they thought about those terms properly - 2% interest for every person you refer!!!

The £6000 bracket offered 3% for life and 3% for friends. Its all on the Crowdcube page if you search.