Premium bond

[Blubell46]

Hi, has anyone ever invested in Premium bonds? If so, can we take the money out anytime? Thank you

Yes and yes

It is easy to withdraw your money - just fill in the online form at nsandi

Yes you can get your original investment back at any time.

Yes, just did it, took 3 days

Yes, they're great. We accrue far more money in terms of prizes than the bank gives in interest.

Return rates from December are dropping - there are better accounts available.

Thank you...am so risk averse in this climate and just want to ensure what we invest we will get back until we can think long term.

Dont want to loose any money

@Voice0fReason if there are significantly better accounts available, can you tell me where? I certainly can’t find one that doesn’t risk capital.

Yes completely safe. I've just put a lot of money in there before we need it for something else and in the last 2 months we've all won, adds up to about 2% which you can't get anywhere. I know it's not guaranteed but I like the fun that we might get a big win and there is nothing out there for savings

@lowbudgetnigella that was what we were thinking/ the fun we might win something but not at the risk of the capital.

Will need think long term but for this year rather keep it somewhere safe

Thank you

Premium Bonds
From December 2020 prize draw
Odds per £1 unit Annual prize fund interest rate
34,500 to 1 1.00% variable
The returns used to be a lot higher - that's why people might have the perception that they are a good investment, they used to be. They are pretty dire at the moment.

MSE savings accounts - no risk to capital, just savings accounts
www.moneysavingexpert.com/savings/savings-accounts-best-interest/
Pretty much everything listed pays more than 1%

And bear in mind that although there are advantages with Premium Bonds, there's no guarantee of any return at all. You might get nothing more than your original investment back. Even with a savings account that only pay 1%, you will definitely get 1%.

It's a safe place to leave money as there's no risk to your capital. Whether it's worth it as an investment depends on how much you put in. The more bonds you put in, the greater your chances of winning.

I started buying in February and so have been eligible for the draw since March. Over that time, I've won £250 which I'm really pleased with (no big wins but £25 or £50 almost every month).

I don't know how much that will go down with the changes that are coming in.

Thank you that has put my mind at rest for now. That is my mission this weekend.