Premium bonds

[Rayn]

So we need to save some money. Saving about 400 a month so decided to go for premium bonds are interest rates are shite.

Just wondered how much people have on premium bonds and how much they have won?
I know the chances of winning are slim but hey ho!

I put £10k (part of an inheritance) in last July. Since then I have won back £125, so not too bad.
The other benefit is that you have instant access if needed.

I have the maximum amount and win on average £50 per month.

When we had over £3000 we won lots, our DC accounts who have around £200 have never won.

I have had between £50000 and £30000 for the last 3 years, most months I win £25, some months £50 a couple of times I have one £75 and once £500. The rate of return is not that great. If it wasn’t for the £500 I would average under £50 per month, I will be reducing my holdings down to under £30000 and expect an average of £25 per month.

On £400 per month I wouldn’t expect to win anything in year 1 and maybe £25 in year 2

I have about £8k and my biggest winnings at one time was £1000. My other half has about the same and has not won anything bigger than £25 a few times a year. It really is a lottery.

DS put £350 of his birthday money in and won £25 the very first month!😊

I have the full £50,000 and have won £550 in the seven draws since November. So an average of just over £75 per month. It’s all been in £25 prizes in that time but multiple £25 prizes most months. I’d say that’s a fairly typical 6 months. A couple of years ago I won a £1000 prize so that skewed the numbers for that year but I’d say I win somewhere between £800-£1000 per year since having the full £50,000.

I have maximum holdings and over the past year have averaged c. £75pm - beats my other savings accounts. Come join us on the premium bonds thread!

Ooh where is the premium bond thread?

Where's the premium bonds thread? http://www.mumsnet.com/Talk/legalmoneyy_matters/3049946-where-s-the-premium-bonds-thread

You're effectively gambling the interest that you would receive in a savings account. You might win enough to match or beat the interest, or you might win little or nothing.

If you're starting from scratch and saving £400 pm, you'll have saved around £5k in a year's time, with the average balance for the year being £2.5k. The best interest rate you can get is just over 1%, so £25 interest would be earned in a savings account.

With PBs and that amount, there's a good chance that you will win nothing. But if you win one £25 prize in a year, you're in the same position as you would be with a savings account, any more than that and you're ahead.

So you need to decide whether you're happy to gamble the guaranteed £25 against a maybe 20-30% chance that you'll match that with PBs and a much smaller chance that you'll win a bigger prize.

I have just over £14k of PBs that I've built up over the last year or so. In 2019, I won 5 x £25 prizes, which worked out at a payout rate of just over 2%. This year, I've only won one x £25 prize so far, so am currently losing against the interest I would have got in a top savings account.

Incidentally, if you can stretch to £500 pm to save, NS&I also do an 'income bond' which pays 1.15% interest. It's effectively an instant access savings account, but the minimum pay in or out is £500.

What @barbaraofseville said, but I will also add that you should probably look to but these savings into an ISA to ringfence them from tax. You can also look at lower risk stocks and shares ISAs which invest in bonds rather than shares. Nutmeg, Wealthify has low cost solutions. Check out your eligibility for a LISA if you don't own property

I usually end up with less than 1% on £50k. I’m not very lucky However it’s a good place for easy access cash (yes we max out ISAs, invest more elsewhere etc etc)

I put 7k in premium bonds recently however I'm not in the draw until july. Going to keep adding each months hopefully another grand this month. I've chosen premium bonds as I like the instant access and thrill of dreaming about the big prizes