Premium Bonds ?

[Squire Haggard]

SFA for me this month. Their performance has been lower than whaleshit recently. They were good during the period of low interest rates, but have not improved since the rates have improved.

[RandomGuy99]

I won £150 this month.

Their prize checker app is pretty good. It shows you the last 6 months prizes.

[Jonestown]

Only £75 for me, have to be the walk ups for me this month.

[Jayjay1]

I have 3k in there since late 2022 won nothing but I look at opportunity cost.

What else can I get in market, saving account 3-4% or shares paying 5% dividend but capital at risk potentially.

Saving account - Would I give up 4% to have the opportunity to get £1m or even 10k 100% YES

Shares - I have a portfolio and intend to grow them but small risk (share price decline) higher dividend but not guaranteed for most stock.

My conclusion- the opportunity to win life changing money £50k + compare to few % or even doubling your investment money (share price increase) is too much to not put few K in premium bond.

[RandomGuy99]

I have 3k in there since late 2022 won nothing but I look at opportunity cost.

What else can I get in market, saving account 3-4% or shares paying 5% dividend but capital at risk potentially.

Saving account - Would I give up 4% to have the opportunity to get £1m or even 10k 100% YES

Shares - I have a portfolio and intend to grow them but small risk (share price decline) higher dividend but not guaranteed for most stock.

My conclusion- the opportunity to win life changing money £50k + compare to few % or even doubling your investment money (share price increase) is too much to not put few K in premium bond.

And winnings are tax free too if you auto-reinvest.

[wilbers]

And winnings are tax free too if you auto-reinvest.

They are still tax free if you don't auto-invest (and some can't reinvest because they are already at the holding limit).

[wilbers]

Just looked back, and my highest win was £1,000 over 5 years ago.  Nearly all have been £25, but with the odd £50.

[radioman33]

Just looked back, and my highest win was £1,000 over 5 years ago.  Nearly all have been £25, but with the odd £50.

That’s decent but you’ve probably got over 10 grand in them to be getting them wins

[RandomGuy99]

They are still tax free if you don't auto-invest (and some can't reinvest because they are already at the holding limit).

But if you pay them into a regular savings account you may end up paying income tax on the interest on your winnings.

[Jonestown]

I have 3k in there since late 2022 won nothing but I look at opportunity cost.

I have a single £1 bond that was a birthday present in 1957 which has still to cough up a single 1d in prize money, and which has probably depreciated to circa jack shit.

There is a view that to win you need to refresh your holding periodically and hold one single block of bond numbers for the best chance of winning.

[RandomGuy99]

There is a view that to win you need to refresh your holding periodically and hold one single block of bond numbers for the best chance of winning.

Those views are not true as ERNIE doesn't actually know the bond numbers. ERNIE generated pseudo random numbers and some match with a bond number and some don't. They keep generating the pseudo random numbers until they have enough matches. See External Link/Members Only for more info.

The best way to improve odds of winning is simply to hold more bonds. The maximum you can hold is £50,000. The odds of winning are 24,000 to 1 of any one bond winning.  If you hold £50,000 you have a very good chance of winning at least one prize every month. However, it still works out better to hold you money in a decent interest paying savings account.

See External Link/Members Only for how the montkiorize fund is shared out.  The majority of the prizes are low value £25.

[timsussex]

It depends on your tax bracket - and other interest from savings - as prizes are tax free 
tax free 3.3% in a rock solid investment isnt bad

[Blackpool Rock]

It depends on your tax bracket - and other interest from savings - as prizes are tax free 
tax free 3.3% in a rock solid investment isnt bad

Not so great when inflation is double digit, and let's not forget many bank and building society accounts were paying a paltry 0.25% up until recently 

[WARSZAWA16]

Cheque received today. Won £25.

[RandomGuy99]

Cheque received today. Won £25.

Congratulations

[kuck]

Hmm. Didn't know cheques were still a thing.

[The_Don]

Hmm. Didn't know cheques were still a thing.

Oh yes

[Jayjay1]

Dont they automatically invest it back to your account.

[RandomGuy99]

Dont they automatically invest it back to your account.

You have to choose that option. If you don't then they can do a direct transfer to your bank account or send you a check.

[daviemac]

Hmm. Didn't know cheques were still a thing.

Still on the go but you can pay them in on your banking app by photographing them.

[kuck]

Still on the go but you can pay them in on your banking app by photographing them.

I think I used it 7 years ago or such. Some utility company had sent me cheque refund. I was impressed that the amount was credited instantly as soon as I scanned it with my bank app.

[Squire Haggard]

Prize fund now up to 3.7%, meaning 24 extra £100k and £50k prizes up for grabs.

I might start to get better than my current lower than whaleshit return.

External Link/Members Only

[Steve2]

Prize fund now up to 3.7%, meaning 24 extra £100k and £50k prizes up for grabs.

I might start to get better than my current lower than whaleshit return.

External Link/Members Only

Keeping my fingers crossed but not expecting miracles 

[lostandfound]

Prize fund now up to 3.7%, meaning 24 extra £100k and £50k prizes up for grabs.

I might start to get better than my current lower than whaleshit return.

External Link/Members Only

Presumably these larger prizes going to just a few individuals reduce the overall return for most premium bond holders?

Though I totally get the appeal of having a chance, however small, of winning a large tax free prize. (And even small ones being tax free).

[Bobbyplastic]

I have close to the maximum there. Every few months I win over £100. Its been the best investment these past few years.

[RandomGuy99]

I have close to the maximum there. Every few months I win over £100. Its been the best investment these past few years.

You'd probably make more in a savings account if you agreed to lock it away for 12 or 24 months. You can get 5 or 6%

[Bobbyplastic]

You'd probably make more in a savings account if you agreed to lock it away for 12 or 24 months. You can get 5 or 6%

True, but I also had a BIG win recently. (Im not going to disclose the amount.)

[radioman33]

Exactly the reason for not bothering with a boring 5% deal= big win possible.

[RandomGuy99]

Not long to wait.

Hidden Image/Members Only

[kuck]

True, but I also had a BIG win recently. (Im not going to disclose the amount.)

My biggest was 1k. Since you've capitalised *big*, I put you at 50k 

[RandomGuy99]

I won £25 this month. There's always next month...

[Jonestown]

£225 this month, making it £775 since December 22, definitely seeing an improvement.

[RandomGuy99]

£225 this month, making it £775 since December 22, definitely seeing an improvement.

It is improving. I've won £850 since December.

[Steve2]

£150 this month, biggest win ever 

[Squire Haggard]

£150 for me. A rare £100 prize and two of £25.

I got £150 last December, which was followed by SFA until March when I won £25. Here's hoping history doesn't repeat itself. 

[robsmith149]

£50 win on max holding, poor.

[RandomGuy99]

External Link/Members Only

[cmspunk]

I have had the maximum amount in since near on a year, on average been winning about 150-200 a month but not won anything last 2 months.

[radioman33]

Just announced August results:£1 mill prize =total investment was £50k(the maximum allowed)other winner had £23,700 invested for a £1 mill prize.Probably need about £15k worth to win big.

[RandomGuy99]

Just announced August results:£1 mill prize =total investment was £50k(the maximum allowed)other winner had £23,700 invested for a £1 mill prize.Probably need about £15k worth to win big.

All bonds have the same probably of winning any prize - big or small

I have £50K in them and this month with the improved odds I won a massive £100 with a single prize.

[Jonestown]

£250 this month

[radioman33]

All bonds have the same probably of winning any prize - big or small

I have £50K in them and this month with the improved odds I won a massive £100 with a single prize.

Looking at the results a couple of people with total holdings of £15k and £16k picked up £100k.Some as low as £3k invested same,fair point.

[RandomGuy99]

Looking at the results a couple of people with total holdings of £15k and £16k picked up £100k.Some as low as £3k invested same,fair point.

Probability even.

[robsmith149]

£100 for me this month.

[Darren101]

Won £100 this time.

Won something every month for the past 6.  Biggest win £1K (+3 small wins bundled that month). Next biggest 500. Then little wins but some months more than one prize.

I got £30K in there though and regularly adding to it. While they say all bonds have the same odds based on what I’ve read I’m of the impression that new bonds and spread out purchases have more chance of winning, given how some people with a full holding for years, don’t win anything (with the odd lucky exception)

I found his winning occasionally, after at 5000 so kept adding

[RandomGuy99]

Won £100 this time.

Won something every month for the past 6.  Biggest win £1K (+3 small wins bundled that month). Next biggest 500. Then little wins but some months more than one prize.

I got £30K in there though and regularly adding to it. While they say all bonds have the same odds based on what I’ve read I’m of the impression that new bonds and spread out purchases have more chance of winning, given how some people with a full holding for years, don’t win anything (with the odd lucky exception)

I found his winning occasionally, after at 5000 so kept adding

The computer system they use to do the draw knows nothing about the actual bond numbers. It generates random numbers and then they match them to bond numbers separately. Therefore there is no chance that the draw favours new bonds. However, it turns that most of the premium bonds that exist are newer bonds purely because there's been more recent interest in them. Apparently three quarters of the current bonds have been bought since 2010.

Have a read of this:

External Link/Members Only

[WASA38]

Won £175 this time. Have had the full £50K holding for about two years and the return overall has been about in line with expectation based on NSI's stated figures. A few months with zero but one with £500.

Martin Lewis advised that investment works out as a better bet for larger sum investors.

[RandomGuy99]

Won £175 this time. Have had the full £50K holding for about two years and the return overall has been about in line with expectation based on NSI's stated figures. A few months with zero but one with £500.

Martin Lewis advised that investment works out as a better bet for larger sum investors.

External Link/Members Only

"Even with the rate increase, Premium Bonds are likely to be beaten elsewhere

For most savers with average luck, and who don't pay tax on savings interest, normal savings are still likely to beat Premium Bonds. This is because savings pay a constant rate of interest – so if you get the top easy-access rate of 4.35%, you'd get roughly £43.50 in interest for every £1,000 saved.

Though this rate is variable, it provides more certainty than Premium Bonds, where many saving the same £1,000 would win nothing.

Many people often think "I'm likely to get the prize rate (or thereabouts) – and there's a small chance of winning a million". But the main point is that this isn't correct. You're actually likely to get quite a lot less than the prize rate of 3.7% or 4%, and there's a negligible chance of winning a million."

[Darren101]

I'd be happy with 50K or 100K runner up prizes though.

[Squire Haggard]

£200 for me, a big improvement. Two prizes of £100, also rare for me.