To but premium bonds?!

[Dollygirl2008]

I have recently come into some money. I'm planning on paying of 10% of it mortgage this year and next, and keep some back for a few treats etc. Someone said I should buy premium bonds instead of a savings account. I've read up on them - it seems that you literally have access to the money should I want it all back, but there is the added chance of winning small prizes?

Is it really as simple and risk free as that? And I can withdraw it when I want?

Yes, pretty much!

There's lots of information on the NS&I website.

For larger amounts of money that would otherwise be in a savings account, I think Premium Bonds are the only option left that pays (with average luck) in the region of 1%. Everywhere else that doesn't require notice pays much less, I think.

Yes, it’s very easy to move money around assuming all your accounts are set up. Dh and I have our house deposit money sitting in premium bonds. The market has been so shit so it’s stayed there longer than planned. We win about £150 a month, which in nearly a year has meant we’ve saved up a good bit for conveyancing etc.

The chance of willing prizes isn't great, but at times of low interest rates - or potential negative rates - PBs are not a bad option. And there is always the chance you could win a million!

I've made 1.3% this year so far, which is better than most building societies.

Yes it's that simple and interest rates are so low just now you have nothing to lose. I've had premium bonds for years and on the whole have been pretty lucky.

It’s all online access and takes three banking days to get your money out-all very easy. Though you don’t earn Interest, the monthly draws quite often gives out the £25 prize and there’s always the chance of the Big Prize!! As it’s government savings, there’s no risk.

Thanks all

Another question and a personal one so please ignore if you'd rather not say
But is it reasonable to put £25k into premium bonds or is that way too much? That's what I was thinking of doing

How could it be way too much, when it’s risk free?

It’s the perfect holding place if you’re unsure what to do.

How’s your pension looking? (and hold are you, and what tax rate are you on... you don’t have to answer here, but that’s what else I’d be looking at. Despite the Covid-crash earlier this year, my pension is up 14% in 3.5 years, and that’s before the additional tax saving)

*hold are you = how old are you 🤣

Yes, go for it.

Thanks cocomarine!! I get what you meant!!! Thanks so much for everyone's advice.

When/if you buy OP, remember they don't go in the draw until the second calendar month after you buy. If you buy in November, they'll not be in the drawn till Jan 1st whether you buy on 1st Nov or 30th.

It's usually best to buy at the very end of the month and gain interest elsewhere for the month; though probably not a big issue now with interest rates so low.

I've had a tiny amount of PM for 30 something years and literally never won a penny - I've definitely not had on average 1%! My daughter has only had hers a year and won something already.

Yes do it, and get the App so you can check to see if you've won each month.
I've won £125 in the last 6 months, on about £15k of bonds

@lidoshuffle

When/if you buy OP, remember they don't go in the draw until the second calendar month after you buy. If you buy in November, they'll not be in the drawn till Jan 1st whether you buy on 1st Nov or 30th.

It's usually best to buy at the very end of the month and gain interest elsewhere for the month; though probably not a big issue now with interest rates so low.

I was coming on to mention the delay in entering the draw, but see lido has already done so.

If you go ahead and buy bonds, definitely join us on the Premium bond thread to discuss brag about any winnings.

Yes we thought it was a safe bet and put in £25,000 (large part of life savings) and the first draw we were eligible for was November's. Not a sausage. Hoping this is normal and we'll have better luck over the next few months.

I think a lot of people must be buying Premium Bonds as interest rates on savings seem to be practically non-existent right now, and they don't want to gamble on shares. What I want to know is if the number of prizes is fixed and more people are buying the bonds, won't this inevitably affect the chances of winning?

Can anyone explain?

@Pemba

Yes we thought it was a safe bet and put in £25,000 (large part of life savings) and the first draw we were eligible for was November's. Not a sausage. Hoping this is normal and we'll have better luck over the next few months.

I think a lot of people must be buying Premium Bonds as interest rates on savings seem to be practically non-existent right now, and they don't want to gamble on shares. What I want to know is if the number of prizes is fixed and more people are buying the bonds, won't this inevitably affect the chances of winning?

Can anyone explain?

Good overview of them, including the upcoming interest rate cut, here: www.moneysavingexpert.com/savings/premium-bonds/

Be really, really sure anything you put your money into is genuinely safe. "Mini bonds", for example, are a scam. Before putting your money into anything, Google the name and read around it. And remember that just because a business is registered with the FCA doesn't mean that it isn't a scam - it may just be a scam the FCA hasn't caught up with yet. M

Why wouldn't you just pay more off your mortgage? Surely the interest rate on that is higher than the return on any safe investment?

Premium bonds thread?!?! Wow - I searched earlier but didn't find much, hence my post! Must have missed it or is it a secret club!!!! I want in!!

@Subordinateclause

I've had a tiny amount of PM for 30 something years and literally never won a penny - I've definitely not had on average 1%! My daughter has only had hers a year and won something already.

Are you PB’s in an old holders number ?

Here you go Dolly

www.mumsnet.com/Talk/legal_money_matters/4040452-PREMIUM-BOND-THREAD

We have £15,000 in premium bonds. Have won £375 over last 2 years. No other savings.

Pemba - Yes we thought it was a safe bet and put in £25,000 (large part of life savings) and the first draw we were eligible for was November's. Not a sausage.

That's bad luck, hope you have better luck soon. I put in £3,500 and won £25 in the first draw I was eligible for in Oct and another £25 in Nov.

But what I'm not clear on is how you work out what % interest that amounts to. So if someone says they are getting the equivalent of say 1.3%, how do you work that out? Sorry, I'm probably being really dense here.

@SummerInSun premium bonds are definitely not a scam!

Why wouldn't you just pay more off your mortgage? Surely the interest rate on that is higher than the return on any safe investment?

Early repayment charges for a start also it’s a good idea to have a sum of easy access savings for emergencies.