Topic: Premium Bonds

[Joff]

Not to be an arsehole but all the posts about how much you have won are rather meaningless without knowing how many you own.

So fess up, I want to know how rich you all are. 

You're right of course.
I have quite a lot, not the maximum though. And I'm definitely not rich 🤣

[67CherryRed]

£7550 invested here, and not won a bean since last May.

[west_london_red]

£30k, but only bought them in December so only been in two draws.

Another increase in rates announced, maybe this might trigger an increase in savings rates and then the Premium Bond prizes but I doubt it will be passed on.

[Elmo!]

£30k, but only bought them in December so only been in two draws.

Another increase in rates announced, maybe this might trigger an increase in savings rates and then the Premium Bond prizes but I doubt it will be passed on.

It probably will be eventually. I think even after the last small rise some banks have raised their savings rates and that will happen again now.

Then people stop buying premium bonds and use savings accounts instead. NS&I will respond to remain competitive.

[Red-Soldier]

You can currently get 2.2% in savings, if you shop around.

[Elmo!]

You can currently get 2.2% in savings, if you shop around.

Only if you lock your money away for 5 years.

EDIT: and it's for a minimum of £25k

[CraigDS]

Only if you lock your money away for 5 years.

EDIT: and it's for a minimum of £25k

Yeah it’s about 0.7% for instant access.

[Red-Soldier]

Only if you lock your money away for 5 years.

EDIT: and it's for a minimum of £25k

Of course, you have to decide if you want to keep it in there for a few years.  You will never get as much with instant access, that's generally how savings work.

A quick search brings up 2.1% with a £1k deposit minimum, fixed for 5 years.

A one-year fixed at 1.35%, £50 startup.

I'm guessing 99% of people in here have had, or plan to have their bonds for longer than a year.

[Andy @ Allerton!]

£25 smackeroonies today.

Marvellous.

[CraigDS]

A big plus of bonds is due to the fact people have near instant access to it though. You can’t really compare them to long term fixed options.

[Elmo!]

Of course, you have to decide if you want to keep it in there for a few years.  You will never get as much with instant access, that's generally how savings work.

A quick search brings up 2.1% with a £1k deposit minimum, fixed for 5 years.

A one-year fixed at 1.35%, £50 startup.

I'm guessing 99% of people in here have had, or plan to have their bonds for longer than a year.

The point about premium bonds is that if something goes wrong  you can get your money out in a couple of days. They aren't really comparable products in that regard.

Different people have different requirements for their savings, and bonds serve some purposes well where fixed term deals don't. Premium bonds are a pretty good place to keep an emergency fund for example which fixed rate deals are unsuitable for.

[Red-Soldier]

The point about premium bonds is that if something goes wrong  you can get your money out in a couple of days. They aren't really comparable products in that regard.

Different people have different requirements for their savings, and bonds serve some purposes well where fixed term deals don't. Premium bonds are a pretty good place to keep an emergency fund for example which fixed rate deals are unsuitable for.

Yep, I agree.  If you are looking at locking your savings away for at least a year, then fixed savings accounts offer you a better, guaranteed return on your money.

The nearest thing Premium Bonds have to an interest rate is their annual prize rate, currently 1%.

[Andy @ Allerton!]

Yep, I agree.  If you are looking at locking your savings away for at least a year, then fixed savings accounts offer you a better, guaranteed return on your money.

The nearest thing Premium Bonds have to an interest rate is their annual prize rate, currently 1%.

Unless you win £1,000,000

I won £500 one week last year.

[Elmo!]

That 2.2% account has a pretty small target market IMO. You need to have £25k spare you can afford to lock away for years, and if you are relatively young, most will be able to tolerate a bit of risk and get higher returns investing that money in index funds.

It's best for people approaching retirement or already retired who will have a much lower risk tolerance.

[Joff]

Ok I'll bite as everyone else is.
£30,225. I think.

We would like instant access as we are considering paying ogg mortgage, but haven't got a clue of it's the best idea or not.

[.adam]

Ok I'll bite as everyone else is.
£30,225. I think.

We would like instant access as we are considering paying ogg mortgage, but haven't got a clue of it's the best idea or not.

As a general rule, paying off your mortgage is advisable if the interest on your mortgage rate exceeds the rate of return you'd get from having your money invested. Given that your cash is invested in Premium Bonds where the returns are pretty low, it's probably better spent paying off your mortgage.

[Andy @ Allerton!]

Ok I'll bite as everyone else is.
£30,225. I think.

We would like instant access as we are considering paying ogg mortgage, but haven't got a clue of it's the best idea or not.

I believe there is space in Red-Soldier's "Mattress" fund

[Red-Soldier]

Ok I'll bite as everyone else is.
£30,225. I think.

We would like instant access as we are considering paying ogg mortgage, but haven't got a clue of it's the best idea or not.

I would second what adam posted above.

[Red-Soldier]

That 2.2% account has a pretty small target market IMO. You need to have £25k spare you can afford to lock away for years, and if you are relatively young, most will be able to tolerate a bit of risk and get higher returns investing that money in index funds.

It's best for people approaching retirement or already retired who will have a much lower risk tolerance.

Yes, but what about the 1-year fixed at 1.35%, with £50 startup I quoted..............?

[Elmo!]

But what about the 1-year fixed with £50 startup I quoted..............?

It will suit some people and won't others.

[Red-Soldier]

It will suit some people and won't others.

Of course, isn't that the nature of all the accounts.  It's good that there's choice, no.

[Elmo!]

Of course, isn't that the nature of all the accounts.  It's good that there's choice, no.

Absolutely.

[Joff]

As a general rule, paying off your mortgage is advisable if the interest on your mortgage rate exceeds the rate of return you'd get from having your money invested. Given that your cash is invested in Premium Bonds where the returns are pretty low, it's probably better spent paying off your mortgage.

Yes, but with inflation going quite high and would prefer to have cash available for the forseeable. I've only got 5 years left as it is as I overpay 3 x what my monthly payment is supposed to be

[67CherryRed]

Yes, but with inflation going quite high and would prefer to have cash available for the forseeable. I've only got 5 years left as it is as I overpay 3 x what my monthly payment is supposed to be

And you're always included in what is basically a free lottery with premium bonds. Someone has to win the big prizes.

[Joff]

And you're always included in what is basically a free lottery with premium bonds. Someone has to win the big prizes.

Yeah, I do enjoy seeing if I've won £50 or whatever. A frisson of excitement

[WhoHe]

Won £25 from just over 23k, I reinvest so it at least looks like I'm making something, £100 is the most I've ever got.

[west_london_red]

I long for the day of my first win

Enjoying throwing a few extra hundred in the pot per month, just feels like buying lottery tickets

That’s always been my logic, I dream of winning the lottery but hardly ever buy a ticket and with premium bonds you get to keep the money you spend on buying the ticket!

[Joff]

£50 This month... feels like a loss 🤣

[BlackandWhitePaul]

I hold £10,000 worth and for the 4th month in a row won Sweet FA. 

5th month in a row now.   

[Millie]

My Mum has just won £550 - one £500 and two £25's.   

[John C]

My Mum has just won £550 - one £500 and two £25's.   

Excellent, that's the most I've heard of in ages.

A mixed month here, a mixture of Zero and a couple of £75's.

[John C]

Sincere apologies Jake

[gazzalfc]

Won £25 in the march draw. First ever win and the money has been sitting there since 2016

[John C]

£50 for me, rest of the household was a bit crap also.

Anyone get anything decent?

[John C]

Funnily enough... bugger all again

My lad is thinking of jibbing his, I must admit he's had quite a poor return from the good few grand he's got in there.

I've had £50k since my mum died in 2014 and I've probably had about 2% a year return. Not a great investment at all really, but because of her I had huge faith in PB's.
Hmmmm.

[Elmo!]

Chase UK are offering 1.5% instant access savings. You have to open a current account first but there is no requirement to pay any amount into current account per month.

Nationwide were also offering 2.5% a while back for existing customers but not sure if still on, and it is limited to £200 deposit per month and lasts for a year so you are looking at around £40 max interest for the year if you pay in the max.

I've moved all my emergency fund money from Marcus to Chase and putting max into Nationwide each month.

[pw1008]

£150 this month best I’ve had before this was £75.

[John C]

That's sound premiumbonds winner mate

[pw1008]

Haha might change to lw1008 see if it gets me any luck on the lottery cos having no luck on that!

[damomad]

£25 for the first time in 4 months.