Tell me about putting money in premium bonds for a short term

[nymphadora]

Just seen it recommended as a low risk option on another thread but how instant is access & how do the winnings work regarding tax.

Oh & what are the odds ?

no tax on winnings
withdrawal pretty quick, think ours came back within a week or so.
see the website for the odds.

You don't pay tax on winnings and acces is instant you just cash them in (instant as in they send you a cheque). Not sure if there is a mminumum time you have to keep them though but i don't think so.

Odds are poor - I have won once in 12 years £50

They don't go into the draw until a month after you have purchased them, so not a good idea for a really short term investment.

All winnings are tax free, you can cash them in quickly.
Depends how much you put in and luck.
The max amount you can have is 30k.
I win at least one or two most months but only the lowest wins £25.
For me it's worked out loads better than the bank interest rates.

Thanks, looking at investment 12m possibly more but need pretty instant access for safety net!

We've had them cashed in quickly in the past and seeing as interest rates are so low atm it's worth it for the chance of a win!

Unfortunately with interest rates low, premium bonds become relatively worse investments (because a higher percentage of the payout is in the big prizes, so you are less likely to get any win at all).

There is an excellent calculator here.

Also, if you need money back and you pull it any other day but the day after the draw you are losing interest on it for those days.

If you need instant access probably best sticking with a boring old savings account, you can get just short of 3% at the moment on instant access in a few places.

Odds are terrible, in about 15 years i have only won £200 in total.

Eurostar is right, stick any extra cash in a savings account or a cash isa if you do not already have one.

Although, if you have above average luck then go for it.

The calculator is very helpful mranchovy. For example "With £5,000 in Premium Bonds, if you have average luck you would expect to win £50 over 1 year".

Very disappointing. We've just withdrawn ours and invested elsewhere.

Yes, when the maximum prize was £100,000 and interest rates were 8% it made a lot more sense because anyone holding a few £'000s worth was very likely to earn a sensible tax-free return, now 99.9999% (not sure if that is enough 9s) of people are effectively giving their money away to the few people who are made millionaires. Same as the national lottery. I prefer to donate money to people who need it.