Premium Bonds

Old Prestonian said:
That is certainly true of most people anywhere in the UK given the low level of interest rates.
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Easy enough on a million or two.

Le Chuck said:
I know that you were a higher rate payer which is why i mentioned it.
The chances are when someone one here is after savings advice they are a basic rate payer, dont have that much in savings &/or only want to save a few hundred a month. This being the case premium bonds & ISA's are just pointless & that regular savers & playing banks is the better option.
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They're shite for him too, Alan Sugar talked him into it iirc.
 


offmenut said:
But in 10 years time , 50k of premium bonds are just worth 50k aren't they? So they reduce each year in real terms with inflation
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The blurb is that you'll get between 2.5%-5% return per annum on you investment if you hold the maximum allowed.

It's not guaranteed though so some years you'll win less than that and others you'll win more.

Plus they give 2 separate prizes of £1M away per month plus smaller prizes ranging downwards from £500K to £25 every month.
 
Jap Stammer said:
The blurb is that you'll get between 2.5%-5% return per annum on you investment if you hold the maximum allowed.

It's not guaranteed though so some years you'll win less than that and others you'll win more.

Plus they give 2 separate prizes of £1M away per month plus smaller prizes ranging downwards from £500K to £25 every month.
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The annual prize fund rate is 1.4% and the vast majority of the prizes are £25.

July 2018 prize draw breakdown
Value of prize Number of prizes
£1,000,000 2
£100,000 5
£50,000 9
£25,000 20
£10,000 47
£5,000 97
£1,000 1,761
£500 5,283
£100 24,177
£50 24,177
£25 3,026,630
Total prize fund value
£88,099,800
Total number of prizes
3,082,208
 
Jap Stammer said:
The blurb is that you'll get between 2.5%-5% return per annum on you investment if you hold the maximum allowed.

It's not guaranteed though so some years you'll win less than that and others you'll win more.

Plus they give 2 separate prizes of £1M away per month plus smaller prizes ranging downwards from £500K to £25 every month.
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So do you get your winnings in premium bonds?
Otherwise I think I'd just spend the odd 25 quid and not really notice it, so my money would just degrade with inflation
 
Old Prestonian said:
The annual prize fund rate is 1.4% and the vast majority of the prizes are £25.

July 2018 prize draw breakdown
Value of prize Number of prizes
£1,000,000 2
£100,000 5
£50,000 9
£25,000 20
£10,000 47
£5,000 97
£1,000 1,761
£500 5,283
£100 24,177
£50 24,177
£25 3,026,630
Total prize fund value
£88,099,800
Total number of prizes
3,082,208
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That must be off the NS&I website.

It's a while since I looked into the prize breakdown - I know the bulk of the prizes are what is known as 'low-value' (£25 to £1000) as opposed to 'high value' (anything from £500 and above).

One way to look at it is you could 'invest' £50K on the National Lottery and hope you win the big one but the likelihood is you'll not break even. At least with Premium Bonds you get a couple of chances a month to win £1M and you get your stake back.

offmenut said:
So do you get your winnings in premium bonds?
Otherwise I think I'd just spend the odd 25 quid and not really notice it, so my money would just degrade with inflation
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You can 'auto-reinvest' your winnings up to the maximum holding allowed (£50K), have them sent to your bank account by BACS or get them in the form of a government warrant (cheque).

High value prize winners get a claim form to verify their identity first before any payment is made.

£1M prize winners get a personal visit at home from 'Agent Million' to verify your identity in person before the cheque is handed over or the BACS payment authorised.
 
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Le Chuck said:
If you're a higher rate payer it probably isnt worth it but for me its a decent little income stream for what is essentially clicking a few buttons on my phone now & then.



Nationwide is upto £2500
They also do a 5% reg saver that unlike most you can dip in & out if needed in emergency.
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Maximum £250 a month, but every little helps!
 
Charmless Man said:
I still have a few thousand ‘residual’ after using them as a holding my pen for my house deposit. The thinking being it’s not going to make much anywhere at any time really but I might win big in those few months.

Probably wouldn’t go for them again tbh, they’re not a brilliant investment.
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I'm going to be in a similar situation very shortly
 
chunkylover53 said:
Marcus is currently paying 1.5% for instant access
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Marcus is a marketing brand of Goldman Sachs and personally I'd rather set fire to my money than let those f*ckers get their paws on it.
My Mam had £5k in Bonds and seemed to get a little win every few months. I reckon they're half way between a shite savings account (0.5%) and the Lottery (a hope tax on the poor).
 
MickeyV said:
Marcus is a marketing brand of Goldman Sachs and personally I'd rather set fire to my money than let those f*ckers get their paws on it.
My Mam had £5k in Bonds and seemed to get a little win every few months. I reckon they're half way between a shite savings account (0.5%) and the Lottery (a hope tax on the poor).
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Each to their own.
 
Wicksy said:
Me mam is 91 - highlight of her month is checking the results with the app on her I pad
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Can’t beat the excitement when an e mail arrives saying Ernie has some good news.:)

You then open the app to find you have won the bottom prize :(

Having said that I’ve just checked the app and I’ve won £175 in the past 6 months on a 20k holding which is acceptable
 
there is a good NS&I premium bond result checker app for ur phone usually reveal results on the 2nd every month, good fun a different theme each month i got rid of me isa and stuck me savings in bonds I have had around 2- 3% every year in winnings over last three years just reinvest in more bonds bit of fun tbh
my isa was paying 0.5%
 
Jap Stammer said:
The blurb is that you'll get between 2.5%-5% return per annum on you investment if you hold the maximum allowed.
It's not guaranteed though so some years you'll win less than that and others you'll win more.
Plus they give 2 separate prizes of £1M away per month plus smaller prizes ranging downwards from £500K to £25 every month.
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And this is why PB's are bollocks.
The odds of winning the £1m prize is phenominally low. Like, you'd have the same change of winning the lottery 4 weeks in a row.
 

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