How much do you save into Premium Bonds?

[MsGiGi]

My Cash ISA bonus interest rate expired this month, so I deposited my Emergency Fund into Premium Bonds instead.

I have £2,950 in there at the moment and I save £27 of my wage each month into PBs.

What about you?

Me and DP both have maximum holdings.

DH and I have both got full holdings in PB's. He's won around £2.5k so far this year, mine is around £2k. They work for both of us.

I’m at full holdings, before then I added anything from £25 to £1K a month as my income varies. I average a 4% return and enjoy not paying tax on my prizes, enjoy the fun element of PBs. My cash ISA is also at the max. You really need a chunky five-figure amount to win regularly from what I’ve observed on the PBs thread on here, at least £30k.

I have £8k emergency funds in PB and so far have won £650 this year. Highest I’ve ever won.

I have maxed out my premium bonds but only because my ISA is already maxed out.

Only £500 if higher rate tax payer. That’s really not much. I have about £47k in PBs; didn’t put full £50k in so any winnings can be added.

I've got full premium bonds. But only because my Isa is full.
I'm thinking of just moving it to a savings account and just paying the tax on it now as tge returns are shocking

It depends on what you want out of the investment. If you want to eek out every last fraction of a percent then you are probably better off elsewhere. However, if you want a reasonable interest rate a small chance of hitting a life changing amount of money then they are a great investment.

Do not assume that what is best for you is best for everybody.

Just one ISA?
You know you can have multiple ISA's but only deposit £20k/pa?

We love PB's and have had them for years (since 1965 but FH for only the past decade or so) but in recent times they are certainly not giving the returns they once did.☹️

DH & I both have full holdings, I can’t remember the exact figures but in the past year we’ve both won prizes totalling over £1,500 so it’s matching the approx 3% you’d get in a Cash ISA

Are you sure you are not thinking of the national lottery?

I don't have full holdings, but I win something pretty much every month.

Nothing, I put £25 in after seeing them on here and then completely forgot about them!
Do they contact you if you win?

They do, yes.

I love my PBs.

Maxed out ISA. Have fixed term savings as well but win regularly and there’s always the possibility of a big one.

PBs are far too often pitched here as the go-to ‘investment vehicle’ but the returns are poor.

The current effective rate is 3.6%. If you want to keep cash, have maxed out your ISA allowance, then whatever would take you to your interest allowance… then there’s an argument, but few people need to be keeping huge sums in cash…!

I keep my tax bill in premium bonds, as I get no interest allowance and take the money out ie not long term saving. I’d use a high interest savings account otherwise - but a tax-free 3.6% is better than a taxed (at 45%) 4.5%. If I wasn’t using up my ISA allowance already, I’d be putting the money there instead:

It should be:

• ISA (which is £20k a year so difficult to max out for most)
• High interest savings account
• Premium bonds last and only with the caveats of why do you need so much cash available, and are you using up your interest allowance

I have full holdings and maxed out isa\s. The rest in savings. I'd always prioritise ISAs over PBs but I have won quite a bit on the bonds this year. 1200 one month. It's definitely better than doing the lottery.

£75 into Direct Saver each month. Premium Bonds - any winnings get reinvested.

Yes im sure i dont mean the lottery 🙄.
Saying you win something most moths is meaningless. There is still no guarantee of any return at all no matter how much you have. That is not the case with a savings account. You are guaranteed to be paid whatever the interest rate is. Even those that do have full holdings and win something every month are not likely to get as good a return as a savings account could offer. Though it baffles me why anyone would have that amount in cash whether savings or PB.

The return on my cash ISA isn’t great generating £80 a month. It’s guaranteed interest but I can never win big and never more than £960 a year (unless interest rates go up). If PB’s allowed to put more money in like up to £100k, I’d drain my ISA and put my £23k into PBs as the possibility of winning big is attractive to me. The chancellor is rumoured to be reducing the ISA limit so perhaps PBs will become even more popular from April 2026 if the change happens.

What do you mean? What baffles you?

What else can you do with money after your ISAs are maxed?

Stocks and shares isa's give more. I lean towards tech and I put 40k earlier this year - before and after the deadline. It's already up to 51k. I might do away with the cash ISAs

What’s the interest rate on your cash ISA?

If you want higher returns, keeping money in cash isn’t the way to do it - you need to start investing.

Unless aiming to buy a house in the next five years, I’d query why people need to save £20k+ (or even £10k+) a year to be kept in cash.

I have around £10K and aim to put in around £100 each month. I am self employed and this is my 'in case of emergency' fund should work dry up or I'm unable to work for any reason.

I am a higher rate tax payer and currently have money in standard savings accounts for my tax bill, replacing my car and helping DC1 onto the property ladder. These savings accounts more than use up my £500 tax free interest limit and I already have a S&S ISA which I pay into as part of my retirement planning.

I therefore see Premium Bonds as a way of earning a little interest tax free. In the last 12 months my rate of return is 4.8%. The previous 12 months it was just over 5%. I appreciate I may just be lucky and that might all change but for me it works well and there's always the chance of a big win.

I have the full holding and have had for many years. I average about £150-£200 a month tax free from them. That suits me. The money is always instantly accessible should I need it and I have the added frisson of a possible big win.

I’ve had mine for around 6 months and add about £500 every month.

never won a penny. I’ll move them next year.