Premium Bonds

[Highway star]

What are people's thoughts /experience with these, can you genuinely win large amounts, or is it a case of winning back your interest you would normally had had paid to you in a standard savings account every now and again randomly in lump sums? Never had any before, but looking at interest rates on savings accounts was wondering if they might be a better bet, I don't really fully understand how they work?
Not sure if this is the right thread for posting, so sorry if wrong

 

[Lincsman]

If you have a lot (up to £49K i think) you will have a prize every month and usually a few, if you get average wins its about 0.5% return tax free, its not a bad place to put spare cash, and every month you have the chance of £1m tax free, the lottery will also do that but your ticket is worthless after the draw, your PB is still there and you can have it back in cash at any time.

You open an account online and deposit money, Min £100, wait a month then its in the draw... Good luck!

 

[Pieces_of_Eight]

The answer is not simple:

Premium Bonds

Premium Bonds are the UK's most popular savings vehicle, but Martin Lewis' detailed analysis shows returns don't add up for many compared with savings.

www.moneysavingexpert.com

I think I've had one win in 40 years...

 

[Lincsman]

The answer is not simple:

Premium Bonds

Premium Bonds are the UK's most popular savings vehicle, but Martin Lewis' detailed analysis shows returns don't add up for many compared with savings.

www.moneysavingexpert.com

I think I've had one win in 40 years...

Despite all assurances it makes no difference, selling and re-buying seems to make them more likely to win, sort of proven by 3 winners of £1m winning in its first draw.

 

[Pieces_of_Eight]

Maybe I should transfer my daughter's current account into PBs...

 

[serf]

I think they definitely make sense when interest rates are where they are and you need to keep cash available , but if interest rates were up around where they used to be 5% and above some recon you have better odds collecting interest in building society and buying ever how many lottery tickets the interest can buy each week

 

[Highway star]

Thanks for replys. Who actually draws the prize's? Does anyone see it is there an adjudicator like the lottery

 

[Lincsman]

Thanks for replys. Who actually draws the prize's? Does anyone see it is there an adjudicator like the lottery

ERNIE electronic random number....... ....... computer

 

[Highway star]

The answer is not simple:

Premium Bonds

Premium Bonds are the UK's most popular savings vehicle, but Martin Lewis' detailed analysis shows returns don't add up for many compared with savings.

www.moneysavingexpert.com

I think I've had one win in 40 years...

Just read this thank you! Now I know where the government are getting all this furlough money from

 

[Bald Rick]

ERNIE electronic random number....... ....... computer

And he drove the fastest milk cart in the West...

 

[Still Farming]

They cut the odd on winning.
Some have luck ofters nothing.
Like doing the lottery and can get your money back.
All NS&I products crap allegedly these days so is anything for savers?

 

[arcobob]

And he drove the fastest milk cart in the West...

I must be Two Ton Ted from Teddington. Backing racehorses with a pin is far more lucrative.

 

[7610 super q]

They pay as little as they can get away with, closely following current interest rates ( f**k all ).
Considering it's " random ", that £25 prize seems to come up very often........
Greatest con of modern times IMO.

 

[Princess Pooper]

I have a few thousand - not sure how many without checking and get plenty of £25 which is the minimum prize. In the past I have had the odd £50 and £100, I've had them for a long time. Interest rates are diabolical at present, at least these are a bit of fun, and have the benefit of being equivalent to near instant access and if by some lucky chance you do get a big win it's tax free.

 

[Still Farming]

They pay as little as they can get away with, closely following current interest rates ( fudge all ).
Considering it's " random ", that £25 prize seems to come up very often........
Greatest con of modern times IMO.

Like the Lottery.
Poor persons tax.
If they rattled a tin at you ,you would tell them to do one.
But promise you a chance of millions and they bung fivers at it!

 

[Lincsman]

Like the Lottery.
Poor persons tax.
If they rattled a tin at you ,you would tell them to do one.
But promise you a chance of millions and they bung fivers at it!

Does not actually cost you anything, other than the massive interest you could get in a bank.

 

[arcobob]

Does not actually cost you anything, other than the massive interest you could get in a bank.

Don`t invest in banks, try the stock exchange.

 

[arcobob]

I have a few thousand - not sure how many without checking and get plenty of £25 which is the minimum prize. In the past I have had the odd £50 and £100, I've had them for a long time. Interest rates are diabolical at present, at least these are a bit of fun, and have the benefit of being equivalent to near instant access and if by some lucky chance you do get a big win it's tax free.

Wins on the stock exchange are tax free if they are in an ISA

 

[Lincsman]

Don`t invest in banks, try the stock exchange.

That can actually go down and there is a fee to buy, so not all good.

 

[arcobob]

That can actually go down and there is a fee to buy, so not all good.

Why are you farming?