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Premium Bonds

(31 Posts)
Lindylou23 Tue 04-Sep-18 08:58:08

I have some savings in an ISA and not getting much return. I am considering putting the money into Premium Bonds, I realise there is no interest but was wondering if the occasional win (hopefully) would compensate for this.
I would be interested in your thoughts.
I have a £1 bond my grandmother bought me when they were introduced never a win lol.

annsixty Tue 04-Sep-18 09:08:49

The return on my ISA went down to .35 this year so in July I put £20,000 into Premium bonds.
They were in their first draw this month and I have won £50 and I get a little bit of excitement.
At 81 I am not saving for anything so it makes sense to me.

Gagagran Tue 04-Sep-18 09:11:12

I have won £500 and £25 today in the September draw. Never won so much before but quite a lot of £25s.

kittylester Tue 04-Sep-18 09:13:34

We both have the maximum and win a few £25 or £50 most months. Haven't checked yet this month.

Luckygirl Tue 04-Sep-18 09:27:37

I have the max and OH has some too - I have won £75 this month and always win between £25 and £75. I like them because they are simple. The money is there, and I do not have to jiggle it about and look for better returns - and try to remember what is where and when it comes to fruition.

It suits us simple souls. smile

Charleygirl Tue 04-Sep-18 09:30:18

I won £25 today- I do not have the full amount but I think the more one has the better chance of winning.

A friend has the full amount and it is rare that she gets zilch.

petunia Tue 04-Sep-18 09:40:55

i have about 45000 invested. over the past three years ive had between £300 and £375 in wins. not brilliant but i dont have to think about it or move it or declare it. its just a pleasant surprise (sometimes not) each month. i doubt it will make me a millionaire

also, if i needed access it is simple to withdraw cash or add to

Mamissimo Tue 04-Sep-18 09:59:26

Over the last few years our winnings have beaten the rates available on Isas but...we have the maximum allowable invested. I think it’s one of those things that are sensible in times like these but once rates go up and the financial markets improve it will pay to move some money out of them.

If they are part of a mix they’re low risk but I wouldn’t put all my eggs in one basket.

Eglantine21 Tue 04-Sep-18 10:16:15

I kept a record and got a return of 1.5% last year, with winnings of £25 per bond, never anything bigger.
It was better than the ISA rate, tax free and there was always the chance of a bigger win!

Nonnie Tue 04-Sep-18 10:26:02

The rate of prizes is 1.4% which is about the same as the top easy access accounts so worth the gamble if you feel like it.

ISAs generally have a very low rate of interest and are not such a good idea as they used to be unless you are likely to earn more than £1000 a year in interest from other sources as we all now have a £1000 tax free savings allowance. A word of caution though, I had to fight HMRC for my tax free allowance as they had me down as receiving an amount of interest I could only dream of! When asked where they got the figure from they suggested I asked my bank! I ended up sending them a spreadsheet which they accepted.

humptydumpty Tue 04-Sep-18 10:36:36

I bought PBs with the proceeds of my house sale; started off well but then the wins tailed off rapidly, and the 'interest' was about the same as, or slightly lower than, interest on ISAs.

Sparklefizz Tue 04-Sep-18 10:54:40

I've won £50 this month!

KatyK Tue 04-Sep-18 11:30:00

We've won £50 today. We win most months but not large amounts

joannapiano Tue 04-Sep-18 11:31:48

I've won £25 this month.
We have won £575 between us this year, usually just the low prizes. Still get a thrill when checking each month.

notanan2 Tue 04-Sep-18 11:41:21

If you shop around you can get up to 5% on savings at the mo which is higher than the average return on premium bonds but that sort of rate is conditional (usually as an incentive to move your whole current account and goes down after a year)

Compaired to AVERAGE "normal" ISAs & savings accounts the premium bond average return is quite good right now.

ISAs and premium bonds arent the only tax free option any more depending on how much youre savings so ISAs have gone out of favour and are not the best option for most savers any more. Look at regular/limited access savings accounts. They are out performing most ISAs now.

notanan2 Tue 04-Sep-18 11:44:20

Agree re the "fun" aspect of premium bonds.

JudyJudy12 Tue 04-Sep-18 11:51:31

I have won every month for the last year, £25-£100. More than the interest I would have received and there is always hope for a big win.

Pittcity Tue 04-Sep-18 11:52:48

We've won £100 this month (4x25). Had nothing last month.
Our stake (pension lump sum) is gradually being spent....holidays, new car etc. It is in bonds now as the money is simple to access and there's a bit of fun each month.

notanan2 Tue 04-Sep-18 11:59:04

I think the premium bond rate is 1.4% right now?

Its just distributed unevenly. So some will get much more. Some will get much less. A lot will work out somewhere in the middle.

Its a decent return on average compared to the high street where a lot are about the 0.5/1% mark, but there are 1.4% and higher available if you shop around

(Forgive me if I have the rate wrong, shopped around earlier this month & going by memory)

notanan2 Tue 04-Sep-18 12:00:23

(Settled on a mix of premium bonds, virgin money & shipton building society when I moved my money last month x)

DanniRae Tue 04-Sep-18 13:23:03

I have max amount and have won £525 this year so far. I get an email to let me know if I have won and then it is paid straight into my bank. I have won every month this year BUT nothing this month so far.
I am very happy to have Premium Bonds and, as has been said, it gives me a little bit of fun each month!!

Nonnie Tue 04-Sep-18 13:24:55

notanan I can confirm that the rate is 1.4%, see my post at 10.26.

midgey Tue 04-Sep-18 13:28:55

I have never won a bean. sad

Tony2018 Tue 04-Sep-18 13:54:54

You can have the monthly premium bond wins automatically reinvested to buy more premium bonds, so it feels like you’re getting the wins as interest. You do need a significant amount in premium bonds to consistently get close to the current notional 1.4%.

You can use your Isa allowance for an investment (stocks & shares) ISA, which is the best chance of beating inflation, but is only suitable if you don’t need access for 10 years or more.

Coventry building society offer some of the best cash ISA rates, but the products are time limited so you have to get in quick.

I’d go for a mix of premium bonds, cash ISA, and stocks & shares ISA for tax free saving.

notanan2 Tue 04-Sep-18 17:09:31

Really depends on how much you are investing because regular savings and bonds can be tax free too now making ISAs a bit redundant for many people unless they happen to have the best rates