PREMIUM BONDS FEB 2024

[Blondeshavemorefun]

New thread and I've been asked to give some basic info. Feel free to add stuff if I’ve missed anything out

Each bond is £1. You have to buy in minimum of £25 each time so means 25 chances to win.

Bonds have to be in for a clear month before going into the draw

If you want to cash bonds in then usually takes 3 days to go into your account

Winnings can be reinvested if holdings are under £50k

Or sent to named bank account if over /want winnings in bank account

More info here

https://www.moneyhelper.org.uk/en/savings/types-of-savings/premium-bonds

The best time to buy premium bonds is on the last day of the month, as this means they are only held by NSI for one month and one day, without being entered into the prize draw.

PB to me is the fun and thrill each month of what if I win big and a millionaire - to a day or two later being grateful if win £25😂

I have nowhere near the maximum and probably never will unless I win £50k + on pb

But only takes one £1 to win that million !!!

I love seeing the low holdings win high amounts

Maximum is £50k per person so some do have all for family- mum dad and 2 kids so £200k etx

Those on the thread are varying from few hundred /thousand - to 20/30k to full holdings of £50k x 2/3/4

Everyone is welcome to join in whether small or full holdings

One would expect if had full holdings of £50k to win something every month and think over the year to earn the same as if in a high interest account to win around £1860 in prizes

From google (august 2023) - The consistent winners are the 1.16 million people who have the maximum £50,000.

They hold almost half of all premium bonds and, at current odds of 21,000:1, can expect a monthly stream of tax-free prizes: two a month and three almost every other month, 28 or 29 a year totaling £1,860

From google (Jan 2024) Tho equally With Premium Bonds, for every person who wins £1 million, a lot of people have to win nothing. So the median average will always be lower than the mean average.

This means that, with average luck, most people will win less than the prize rate each year, regardless of how many bonds they hold

But many on here do have £50k and then consider moving it to an account that pays 5/6% if their bonds aren't doing very well as would then def get extra money

But remember savings /interest get taxed

PB and their winnings don't

So they do dither whether to pull out from pb and put in high interest account if not winning anything

If you have PB but not sure if you have ever won esp if moved about a lot

you can write to NS&I. Include these details in the letter:

	Current name

	Current address

	Premium Bond holder number 

	All previous addresses where you might have registered bonds

	Your signature 

You can send your letter to:

NS&I,
Sunderland
SR43 2SB.

There are 3 apps afaik

Cream - prize checker and if won previous month will show a pic - which we all get excited over 😂😂😂

White - main one with info 😄😄😄

Blue - often doesn't work for me but those who reinvest their winnings say it shows if won the day before app shows 🙀🙀🙀

Should be noted that if you are lucky enough to have full holdings you won’t see anything in the blue app even if you have won as that only shows reinvested prizes.

Now this has been debated on MANY times but seems to be correct

When do we find out

Last day of working month - Millionaire knock /call

First day of working month - list showing all winners million to £1k winners - which I always put up for those who can't find it

Second working day of month - cream app showing all winnings

Hopefully I've covered everything

Good luck one and all 😄

https://www.gov.uk/individual-savings-accounts

You can save £20k in a year - no - not £40k the next year.

The benefit of them is that the interest generated in an ISA is tax free.

The Martin Lewis site also has a page devoted to this

https://www.moneysavingexpert.com/savings/isa-guide-savings-without-tax/

@littleblackcat27 is is the same £20k each year then and you just move the interest away?

@slithytoveisascientist no, each year you can put in a maximum of £20k and the interest will be paid on the whole amount invested. So if you put the money away each year and don't touch it you will accumulate more tax free interest.

You can transfer the money out to move it to another ISA that is paying a better interest rate but if you cash it in you lose that year's tax free allowance - eg if you put £20k into an ISA in April but then decided you need that money to spend on something in September you cannot put another £20k in the ISA until the new tax year the following April.

You should absolutely be maximising your tax free allowance before PBs, you are essentially turning down tax free money otherwise.

Wanted to clarify: you don't keep reinvesting the same £20k - you get a tax free allowance of £20k each year, so if you have the ability to save £20k every year then you should.

Year 1 - £20k in ISA to earn interest
Year 2 - add another £20k so you have £40k plus 1 year's interest
Year 3 - add another £20k - now have £60k plus 2 year's interest
etc

Obviously very few people have the ability to save £20k every year, but say for example if you inherited more than £20k you'd put the first £20k in an ISA in Year 1 and the rest of the money either in a high interest savings account/bond/premium bonds and then when the next tax year rolled around you would move £20k into the same ISA (or put it, and your original £20k, into a new ISA paying a better rate).

Thank you that has explained it for me, I must sound so dim but couldn't make sense of it.

Yes we definitely should do ISA before PB! Now need to choose which one. We are 37 so LISA perhaps.

And no we won't have £20k available every year but we could do £20k each this year then maybe £5k each every year after

Do you leave in the same ISA or move around looking for better interest rates each tax year

No worries, it can take a while to get your head round.

while interest rates were low we had our ISA money in stocks and shares ISAs, but this years is in a cash ISA as we got a good 1yr fixed rate of 5.5%. We’ll review when the year runs out and look at whether we move it or leave it.

Glad I found this! Very interesting to read the pp's. We bunged £500 in PBs a few months ago for fun and have won £25 previously and £100 this month. I wasn't expecting that!

That's amazing odds !!

.

@slithytoveisascientist
As I understand it the LISA is a bit different from other ISAs - for up to £4000 a year you get a bonus of 25% of what you've put in, but it's for buying a house or a pension, and if you decided to withdraw it in your 40s/50s for another purpose, not to buy a house, you'd pay a hefty penalty, which is on the money in the account (including interest accrued etc) and so would be a bit more than the bonus received. So unless you're pretty sure about saving for a house and the timescale etc, other ISAs are more flexible - though there are still lots of decisions to make - cash savings or stocks and shares investment ISAs, fixed rate or variable term, accessibility of savings (instant access, limited access, notice accounts. Best rates from an online bank or a lower rate but a high street branch that you can visit easily.

Currently with ISAs you can open/pay into one each tax year, so you can keep your savings in one place or open one now and a different one in April this year. Next year you can split your allowance between different ISAs. You can also transfer savings but you have to use a transfer process - ask the banks/providers to make the transfer - to keep the tax free ISA allowance - don't take your money out of one account and put it into another yourself.

My FOI has been answered and drum roll....there is no set date for the draw. They then provide the dates for informing people, which doesn't include in person

So what I've said previously

Millionaire. Last working day
Iist over £1k - first working day
App - next day

So for March

Thur 29 feb millionaires
Fri 1 March - list
Sat 2 March app

Right. But no in person notification.

I've asked for clarification as my answer doesn't include in person notification and someone else's says they travel to inform them. Which is it??

Placemarking so I can look into this later

No set date? They just do it when they fancy?

That's what they say

https://www.whatdotheyknow.com/request/dateoffprizedrawwand_communica?nocache=incoming-2556728#incoming-2556728

Ah right then Bob let's do it today?
Nah let's wait till after the pub lunch on Friday it'll be a Laff.
But we did it Friday last time, let's do it Monday on my birthday

@VanilleA just like that I think.

I think @OneFrenchEgg they've said in the past that they travel in person to see them and tell them in person about the million

Plus you may want pic removed if YOU are ET as has your name

I think it's weird that the response about how they tell winners doesn't include in person.
Might ask to remove link, it's a short version so I guess easy to guess.

I posted before on here about tracking down our kids PBs. We have now had letters so we can log in for my DD (still waiting for DS letters) and it turns out she won some money last year. It looks like they paid her by cheque but I'm not sure. If so it will have gone to her old address. I tried phoning but it was just after 6pm so the office was closed.

Does anyone know if we might still be able to get her her winnings?

Yes If cheque hasn't been cashed they will issue a new one

Years ago when for cheques - did get paid into bank wns now reinvest

But I washed one in my jeans pocket. They replaced it and cancelled the cheque (how very mn) 😂