does anyone use them? just wondering if they are worth investing in…
A relative won £50 on them last week. I would get some if I had the dosh.
Safer bet than the banks at the moment 
Unless the government goes down. Highly Likely 
I’ve got 100quid of them just for a laugh rather than any kind of actual “investment”. I did have 5000quid of them at one point and won 50quid three times over a period of about 18mo.
On a purely financial basis, looking to get the best return available for your money, they’re a non starter for almost everyone. You will get the best return by putting your first £3600 each year into a cash ISA. This will give you a tax free return of up to about 6% currently compared to an average return of under 2% on premium bonds. If you have more than this to invest then assuming you’re a basic rate taxpayer (taxable income under about £40k/year) then you’ll still be much better off with a normal savings account than you would with premium bonds. Premium bonds only really become worthwhile financially if you’re a higher rate taxpayer who has already used up your annual ISA allowances.
However on a purely fun note, there’s no harm done in putting a few hundred quid in premium bonds cos you never know, you might win a big prize!
Paul
I have had £300 worth for 20 years and won sweet FA
I’ve got a grand in them (in a will from a relative) - TBH I quite often (about every 3-6 months) £50 but nothing more.
Seem a relativly safe investment with banks being the way they are but obviously the lack of interest is a pain but it keeps you from spending it rapidly as it takes a month to withdraw it.
little enis:
I have had £300 worth for 20 years and one sweet FA
Have NS&I got your current address? There are a huge number of PB prizes unclaimed because people have moved and forgotten to tell NS&I or their new address. If this is the case and you have your holder number you can (once you’ve told them of your new address) get them to check in case you’ve missed a prize. The chances are in 20 years with 300quids worth you should have won 2 prizes given what they call “average luck” so you never know, there might be 50quid waiting for you!
Paul
kjw21:
I’ve got a grand in them (in a will from a relative) - TBH I quite often (about every 3-6 months) £50 but nothing more.
With £1000 worth you should on average win one prize every 3 years given the current odds so if you’re getting £50 every 3-6mo then you’re doing amazingly well! After all, two £50 prizes a year on £1000 is a 10% return and three £50 prizes is 15% which is incredibly good luck given the prize fund is well under 5% of the total invested (currently a paltry 1.8% since that big interest rate cut).
Either that or you actually have a lot more than £1000 worth and you don’t realise it, which is possible due to the way that the system works. If you’re winning 2-3 prizes a year then with the odds they’re giving and average luck it would suggest you actually have a holding of nearer £6k - £9k.
Paul
repton:
If this is the case and you have your holder number you can (once you’ve told them of your new address) get them to check in case you’ve missed a prize.
You can also check on their website.
ill take your money off you mate free of charge… gimme 100 quid and ill give u back a tenner
Its only been the last 18 months - but whilst they keep coming in the post I’ll keep cashing them in (you get a choice of to whether to reinvest).
it came about after chatting with another driver, i have 2 isas, and a high interest post office account, he was saying to put the post office account money into premium bonds, although i think i would need to put a lot of money in for them to be better than the post office 6 percent
is it right you can withdraw them when you want the exact amount you put in, you dont actually get charged? seems a bit too good to be true with the uk…
mrpj:
repton:
If this is the case and you have your holder number you can (once you’ve told them of your new address) get them to check in case you’ve missed a prize.You can also check on their website.
You can
small percentages to be paid to me and mrpj
Wheel Nut:
Safer bet than the banks at the momentUnless the government goes down. Highly Likely
The money isnt held by our government.
euromat:
it came about after chatting with another driver, i have 2 isas, and a high interest post office account, he was saying to put the post office account money into premium bonds, although i think i would need to put a lot of money in for them to be better than the post office 6 percentis it right you can withdraw them when you want the exact amount you put in, you dont actually get charged? seems a bit too good to be true with the uk…
You you put £100 in, no matter how long you have it in there if you want to pull it out you will get £100 back, irrespective of interest rates, cost of living etc.
The more you have in the more chance of winning you have, I think the maximum you can have in is £20k,
In theory it wont make you money as there is no interest, you may just win abit back here n there, you wont lose it either.
I see it as a tax free pot for abit of cash that drops me a cheque once/twice a year.
B1 GGK:
I think the maximum you can have in is £20k
It’s 30k these days.
B1 GGK:
I see it as a tax free pot for abit of cash that drops me a cheque once/twice a year.
That it is, but you would get a lot more interest from a bog standard cash ISA (like 2 - 3 times) than the prizes you get from PBs so unless you’re already using up your ISA allowance then in purely financial terms it’s not worth having Premium Bonds.
For example with average luck and £3k of premium bonds you’ll win one prize a year which will almost always be a £50 prize, so that’s £50/year. With £3k in a NS&I Direct Cash ISA (the best ISA currently available from the same people who do Premium Bonds) you’ll get £99 interest in the first year at the current 3.3% rate. Both are tax free, and there are better paying ISAs out there too (for example NatWest do one that would pay almost £200 on a £3k investment). Of course the ISA doesn’t give you a chance of winning a million quid, but it does give you a guaranteed return of almost twice the most likely PB return.
Paul
euromat:
he was saying to put the post office account money into premium bonds, although i think i would need to put a lot of money in for them to be better than the post office 6 percent
You’re absolutely right - the average return on PBs is under 2% at present, so unless you’re incredibly lucky and win one of the big prizes, you’re better off leaving your money where it is.
Paul