Topic: Premium Bonds

[Barneylfc∗]

Technically you’re supposed to file a return but in practice HMRC have been doing this automatically.

I think HMRC get the info from your bank and your tax code for next year will be updated to collect the tax owed via PAYE.

Note that I am not an accountant / financial advisor or anything, this is just info I’ve gleaned from the internetz over the years so don’t take my word as gospel 😅. Maybe someone else can confirm!

How does this work?
Does your total savings get added to your total PAYE income to determine your tax bracket? Or is it just the interest gets added to PAYE?

[Elmo!]

How does this work?
Does your total savings get added to your total PAYE income to determine your tax bracket? Or is it just the interest gets added to PAYE?

It will be interest above your allowance. The amount of savings you have doesn't matter, its how much interest you earn on it that does.

Your allowance is determined by which tax bracket you are currently in.

[Andy @ Allerton!]

Won something, but the website looks knacked.

[Red-Soldier]

How does this work?
Does your total savings get added to your total PAYE income to determine your tax bracket? Or is it just the interest gets added to PAYE?

Basic rate tax payers can earn £1000 a year interest, tax free.

Higher rate payers can earn £500.

Anything after that, is paid at 20% for basic rate, or 40% for higher rate payers.

It gets taken off your PAYE wages.

[rob1966]

£575 between the three of them this month

£3850 between them all in 2023, some going that

[John C]

£625 in to ours.

[Crosby Nick]

Did the digging to trace old addresses etc as I knew I had been given some as a kid…I have £10 worth.

Don’t think I’ll be checking the monthly draws too often.

[John C]

My daughter searched the winners stats today, someone with 340 quids worth won £100k. I told her not to put her self through the pain of looking.

[The G in Gerrard]

Is there a minimum age you can open one of these?

[The G in Gerrard]

£575 between the three of them this month

£3850 between them all in 2023, some going that

Bloody hell

[The G in Gerrard]

My daughter searched the winners stats today, someone with 340 quids worth won £100k. I told her not to put her self through the pain of looking.

Since opening an account or as one lump sum?

[John C]

Since opening an account or as one lump sum?

The account was opened in 2008 but it was a single win today.
Likewise I've seen an account open for 3 months holding 1k and they win £50k in the past.
Decembers is all in here, but don't do it to yourself.
https://www.nsandi.com/prize-checker/winners

[The G in Gerrard]

The account was opened in 2008 but it was a single win today.
Likewise I've seen an account open for 3 months holding 1k and they win £50k in the past.
Decembers is all in here, but don't do it to yourself.
https://www.nsandi.com/prize-checker/winners

Flipping hell. Didn't know you could win a million either!?

[damomad]

Flipping hell. Didn't know you could win a million either!?

Ah that’s how you they get you hooked. The dream of getting a knock on the door from agent million. In reality, you’ll need a good deal of luck just to make the interest back that you would have on a low end high street bank savings account.

Still worth it for the thrill of it though! 125 quid for me this month.

[Andy @ Allerton!]

Ah that’s how you they get you hooked. The dream of getting a knock on the door from agent million. In reality, you’ll need a good deal of luck just to make the interest back that you would have on a low end high street bank savings account.

Still worth it for the thrill of it though! 125 quid for me this month.

Earned far, far more on the PB than on interest on savings accounts this year.

[rob1966]

Earned far, far more on the PB than on interest on savings accounts this year.

They're odd though, sister in law and brother in law have got double what my lads hold, yet the kids've both won way more than them

[BlackandWhitePaul]

It's a right pisser when you win nowt isn't it.

I wouldn't care I bumped my investment  in these bonds up by another £5,000 the end of October.

[damomad]

Earned far, far more on the PB than on interest on savings accounts this year.

I believe you, and I’m probably not far off it either. Just don’t want to give the wrong impression for newbies, it’s possible that the posters in here have had above average luck.

From money saving expert:

“The average return on Premium Bonds is 4.65%, but you won't earn that even with average luck. The nearest thing Premium Bonds have to an interest rate is their annual prize rate, which is currently 4.65%. The interest rate describes the 'average' payout, but it's just a vague watermark.“

[Red-Soldier]

I believe you, and I’m probably not far off it either. Just don’t want to give the wrong impression for newbies, it’s possible that the posters in here have had above average luck.

From money saving expert:

“The average return on Premium Bonds is 4.65%, but you won't earn that even with average luck. The nearest thing Premium Bonds have to an interest rate is their annual prize rate, which is currently 4.65%. The interest rate describes the 'average' payout, but it's just a vague watermark.“

Andy's had enough of experts 

[Qston]

I have had my first ever win. £25.  Obviously not much but at least I finally won something !

I have £700 in bonds and just add £50 per month as part of my various savings.

[Lad]

I've found three old ones when clearing out my mum's house. She bought them for me in the early 70's. Is it worth checking up on them ? Suspect I'll have to jump through some hoops to prove they're mine.

[rob1966]

I've found three old ones when clearing out my mum's house. She bought them for me in the early 70's. Is it worth checking up on them ? Suspect I'll have to jump through some hoops to prove they're mine.

Deffo worth it, could be some unclaimed prizes waiting

[Lad]

Deffo worth it, could be some unclaimed prizes waiting

Cheers Santa. I’ll get onto it. While I’m here… I shut down my Premium Bond account last month. Had 10k worth and won precisely zero between February and October so thought fuck it and found an online bank giving 5.1%.

[BlackandWhitePaul]

Nothing in December, nothing in January, 1 prize of £50 today.

Nothing to get excited about.   

[rob1966]

£600 this month, sweet

[Crosby Nick]

My wife has joined your gang here. £100 for her this month. Last month was the first draw she’d been in and won £250 I think.

[Red-Soldier]

My wife has joined your gang here. £100 for her this month. Last month was the first draw she’d been in and won £250 I think.

Nice.

[rob1966]

My wife has joined your gang here. £100 for her this month. Last month was the first draw she’d been in and won £250 I think.

[BlackandWhitePaul]

So for the last 3 months I have "won" £50, not much on a £30,000 investment is it.

I'm probably a mug dreaming of landing one of the big prizes.

[Red-Soldier]

So for the last 3 months I have "won" £50, not much on a £30,000 investment is it.

I'm probably a mug dreaming of landing one of the big prizes.

You could get way more than that, in a 12 or 24 month fix, or even just a flexible saver.

Do some reading on MSE.  I'm getting over 6% in one account.

https://www.moneysavingexpert.com/savings/

[The G in Gerrard]

Was going to open an account for my son but getting 8% interest on a savings account with Nationwide so got that for 12 months first.

[rob1966]

So for the last 3 months I have "won" £50, not much on a £30,000 investment is it.

I'm probably a mug dreaming of landing one of the big prizes.

One of my sisters in law pulled her £30k out of bonds and stuck it in an account, she's guaranteed £9k over 3 years. I'd look at something like that if you're winning nothing

[BlackandWhitePaul]

One of my sisters in law pulled her £30k out of bonds and stuck it in an account, she's guaranteed £9k over 3 years. I'd look at something like that if you're winning nothing

You could get way more than that, in a 12 or 24 month fix, or even just a flexible saver.

Do some reading on MSE.  I'm getting over 6% in one account.

https://www.moneysavingexpert.com/savings/

Good advice and I thank you 2 Gentlemen. I will get onto it after the weekend, 1st thing Monday morning.

[Mr Mingebag Squid]

How does this work?

My mum bought my daughter one for her birthday and said she'll get one every year for her. Does she get entered into a prize draw every month?

[Red-Soldier]

How does this work?

My mum bought my daughter one for her birthday and said she'll get one every year for her. Does she get entered into a prize draw every month?

https://www.nsandi.com/products/premium-bonds

[rob1966]

How does this work?

My mum bought my daughter one for her birthday and said she'll get one every year for her. Does she get entered into a prize draw every month?

Yes, every premium bond number is in the monthly draw and you can win anything from £25 up. They have an app, download that and on the 2nd of every month you can check if she's won anything. You can buy additional bonds via the app, £25 each

[Andy @ Allerton!]

Only £250 this month.

£900 last month. £1200 the month before.

[rob1966]

Only £250 this month.

£900 last month. £1200 the month before.

Some cracking wins there, even £250 is a great win

[John C]

£600 this month, sweet

My youngest daughter got £600, the rest of us about £500 between us.

[smicer07]

How much money do people put in initially? I've just stuck 500 in but I guess my chances are limited.