NS&I premium bonds any good?

[Lilifer]

Can anyone advise me on their experience of these premium bonds. as i understand it you get a bit more or a bit less than the equivalent of a decent interest rate in prozes over the course of a year, albeit not every month, is that rigth? Otherwise why wouldnt people jist put the cash into a high interest savigns account and pay tax on the interest? im tryimg to figure out which one comes out ahead after 12 months in terms of cash in your pocket?

Looking at it another way, my unexpected win could mean I can retire a year earlier than planned.

I have £25K & over the year to June I had about a 3.5% return, but that is tax free of course.
Since then I've had very little - £0 July & August & £25 this month.
If you haven't used your ISA allowance do that first. The main thing about premium bonds is the possibility of getting a big win. In reality most people won't.

I have 50k invested and I would say average for the month has been 150, my biggest win was 1500 last month which was a total windfall.

I would agree with advice about maxing out S&S ISA first

Dm has 50k and wins something most months. Ranges from £25 to a few hundred or so. I think she likes it as it feels like gambling to be honest.

I have a decent amount in there and rarely do well. I do get better with MoneyBox so that would be my recommendation.

I have a very small amount in my stocks ISA but yesterday it made over 100 .
One day last week if was over 300 in one day. Obviously it goes up and down but always inches up

I only had a few thousand in for several years and I never won a thing! So now it’s invested by me through invest engine and I’ve gained lots more. It’s the risk you take.

I’ve got about £30k in, partly because I want easy access to the money. It’s not a great return. We pay off the mortgage this year and I plan on retiring in the next 2 to 3 years so need to and see a financial adviser as I have other savings that aren’t producing a great return….

If you want any sort of guaranteed return then avoid them, if you enjoy taking a chance then give them a try- can always withdraw them. I win something most months, a few biggish ones.

Read this. It explains everything you need to know about Premium Bonds. It also comes from a reliable source.
https://www.moneysavingexpert.com/savings/premium-bonds/

It’s all random luck and you’re as likely to win if you have 50 quid in them as if you have £50,000. It’s the worst way to invest money. It’s probably the safest way to gamble it

I have about £40k and have won £1100 since Jan. About £1800 last year.
I use them as a but of fun....we make a ritual of opening the prize app every month in bed with a cuppa

As an investing product PBs are poor. If that £50k is all you have then invest and save it elsewhere. I average 3% as a return with my £30k in there. Experiences in general on the PBs thread on here echo my own - average return for most of us or below average. Max out your ISA first.

Well thats not true, the more you have the more chance you have of winning as the more bonds will be entered into each draw. You are also only gambling the 'missed interest', the money you put in is always safe.

Youve somehow got completely the wrong end of the stick somewhere along the line

It's definitely random but completely bonkers to suggest that someone with 50 tickets has the same chance is the raffle as someone with 50,000 😂

Do you know how raffles work?

As above, the more bonds you own the greater the chances of a win. It's not really gambling either as you don't loose any money. I have 50K and win most months - over the past few years I have hovered around 3-4%. This year so far I've done better with a few £500 wins, it's usually a £25, £50 or £100 wins. But it's money the tax man can't hack away at and I like the fun of checking every month. Plus, I do know someone personally who won a very substantial amount.

It's worked out for me, I have won £1600 so far this year with full amount invested. When I only had 10k I won nothing so invested that in fixed one year isa as at least on 4% I was guranteed to make some money. I think its a great way to have access to money with a chance of making more if you have maxed out other investment options.

worth doing if you are a higher rate tax payer and have maxed out your isa allowance. Dh and I each have full holding - largest win £5k.

You probably shouldn't give advice if you don't understand what you're talking about.

Your chances of winning are higher the more PB's you hold. Like any other lottery, if you buy 1000 tickets vs 1 your chances are obviously going to be higher.

DH and I max holdings for a few years after an inheritance. We averaged about 3.5% over that time and also had several months with no wins at all.

As others have said, what is the money for? If it’s money you need in the short term (the next 5 years) then a high interest savings account will guarantee you your return, though obviously inflation will erode it.

If you don’t need to access the money for at least 5 years then you are better off investing in stocks and shares as the returns are far better.

Make sure you have maxed out your ISA allowance and are paying into a pension as a priority. After that you can look at PBs, but treat them as a bit of fun rather than a serious investment,