Page 4 | How much do you save into Premium Bonds?

MsGiGi · 2025-10-24T14:28:53+00:00

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?

KitsyWitsy · 25/10/2025 11:11

I think most people with FH win most months. 1-200 or so. That's been my experience other than last month when I won 1200. I've never not won anything. My lowest month I won £75. I keep it all separately and spend it on lovely things for myself. My money is from inheritance so I use my PB winnings as gifts from my dad. This year, I've had a new handbag and a holiday.

rainbowunicorn · 25/10/2025 11:11

lifeisaronancoaster · 25/10/2025 10:59

Could you elaborate a bit on the mortgage payment element there, would you suggest not paying off a mortgage if you have the capital, but investing it elsewhere? If so do you see mortgage overpayment are ever a good idea, depending on where you are on the financial path so to speak? Thanks

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That depends on your mortgage interest rate. I think pp is referring to the blanket advice some posters give which is pay off mortgage and put rest in premium bonds. If you have a 2% mortgage which has been there case with a lot of tbe posters seeking advice then it would be crazy to use all your funds to pay that off while basic savings accounts or ISAs are paying close to 5% and investment accounts or sticks and shares ISAs double that.

rainbowunicorn · 25/10/2025 11:16

Zippidydoodah · 25/10/2025 10:43

Reading this thread makes me feel very poor indeed.

Why though? Everyone's circumstances are different. I am in my 50s and have been working full time apart from a couple of maternity leaves for 40 years. It's only been in the last 10 years that my circumstances have meant that I can save large amounts. There was a time that my entire savings a month were £10. No matter what though I always put that £10 away. That was a great achievement for me when at the end of the year I had £120 saved and a tiny, tiny bit of interest added.

Parker231 · 25/10/2025 15:59

MidnightPatrol · 25/10/2025 10:49

Only if you have no savings interest allowance left, and have maxed out your £20k a year ISA allowance…!

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We put the maximum in Premium Bonds because we have maxed out other options.

ICanSpellConfusionWithaK · 26/10/2025 08:42

rainbowunicorn · 25/10/2025 10:16

I wouldn't keep it in cash. I would be investing it. Having £50,000 sitting in cash being eroded by inflation is absolutely crazy for me. I keep under 10k in easily accessible cash. E.g a savings account with as high an interest rate as I can get that allows up to 3 or 4 withdrawals a year without impacting the rate. This is money intended to see me through an emergency such as boiler breaking, white goods needing replaced, large car bill etc. Proper long term savings are invested rather than being held in cash. Starting with maxing out a S&S isa each year if i can before anything else.Yes the stock market has its ups and downs but historically has always performed way better than cash savings or premium bonds. Even if you do have to pay some tax on the returns. I also pay in to a SIPP each year and AVCs via salary sacrifice to my workplace pension to reduce my tax liability.
I think what baffles me is the mindset of many in the UK that refuse to invest their money. I want my money to make as much as it can for me.
I do understand that much more education around financial matters is needed but to me it just seems such a shame that people could be getting much better value for their hard earned cash than they do with it sitting in a cash ISA or premium bonds at around 3%
Is not intended to sneer or have a dig. As a country we shout loudly when our employers offer us below inflationary or zero pay rises, rightly so. Why do we accept it for our hard earned savings. Thats all, as I say not intended to be a dig at anyone. I grew up in a household with 2 parents that were financially illiterate. They could barely budget for the basics like shopping, fuel, clothing or anything else. As an adult I decided to find out as much as I could about financial matters and it just sort of snowballed from there.

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It would help if we were taught it all in school, and the government wasn’t trying to keep us as poor as fuck.

any advice on good investments?! Complete beginner here!

Temperance2 · 26/10/2025 08:47

the government wasn’t trying to keep us as poor as fuck

To be fair, the government is desperate to get people investing more and saving less- hence all the rumours about cutting the cash ISA.

ICanSpellConfusionWithaK · 26/10/2025 08:50

@Temperance2 yeah - of course. Investing into things that raise THEIR shares and make them money. But interest rates are shocking, inflation is a mess, housing market limping along.

my husband lost his job last year and we were doing well financially so had savings and therefore not entitled to benefits. Even if we were they’d only give us something stupid like £1000 a month which wouldn’t even cover our mortgage payment. No real help until you’ve sold your home, paid all the proceeds to a private landlord of £1800 a month for a comparable property and then they’ll pay it for you! Absolute joke.

Mischance · 26/10/2025 09:27

rainbowunicorn · 25/10/2025 10:16

I wouldn't keep it in cash. I would be investing it. Having £50,000 sitting in cash being eroded by inflation is absolutely crazy for me. I keep under 10k in easily accessible cash. E.g a savings account with as high an interest rate as I can get that allows up to 3 or 4 withdrawals a year without impacting the rate. This is money intended to see me through an emergency such as boiler breaking, white goods needing replaced, large car bill etc. Proper long term savings are invested rather than being held in cash. Starting with maxing out a S&S isa each year if i can before anything else.Yes the stock market has its ups and downs but historically has always performed way better than cash savings or premium bonds. Even if you do have to pay some tax on the returns. I also pay in to a SIPP each year and AVCs via salary sacrifice to my workplace pension to reduce my tax liability.
I think what baffles me is the mindset of many in the UK that refuse to invest their money. I want my money to make as much as it can for me.
I do understand that much more education around financial matters is needed but to me it just seems such a shame that people could be getting much better value for their hard earned cash than they do with it sitting in a cash ISA or premium bonds at around 3%
Is not intended to sneer or have a dig. As a country we shout loudly when our employers offer us below inflationary or zero pay rises, rightly so. Why do we accept it for our hard earned savings. Thats all, as I say not intended to be a dig at anyone. I grew up in a household with 2 parents that were financially illiterate. They could barely budget for the basics like shopping, fuel, clothing or anything else. As an adult I decided to find out as much as I could about financial matters and it just sort of snowballed from there.

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This neatly explains why my savings are in premium bonds!
I honestly can't be arsed with all the research needed to do all this and moving money around and not being able to get money out instantly and having to watch the markets etc.
Stuff all that! My full holding makes a steady profit and I have peace of mind and time to do better things with my life than all the above!
Each to his own.

Catpiece · 26/10/2025 09:32

Full holdings from an inheritance x

jonnybriggswasgreat · 26/10/2025 09:56

ICanSpellConfusionWithaK · 26/10/2025 08:50

@Temperance2 yeah - of course. Investing into things that raise THEIR shares and make them money. But interest rates are shocking, inflation is a mess, housing market limping along.

my husband lost his job last year and we were doing well financially so had savings and therefore not entitled to benefits. Even if we were they’d only give us something stupid like £1000 a month which wouldn’t even cover our mortgage payment. No real help until you’ve sold your home, paid all the proceeds to a private landlord of £1800 a month for a comparable property and then they’ll pay it for you! Absolute joke.

Digressing now but your post annoyed me and I feel compelled to comment. No, it isn’t an “absolute joke” that you and your husband would ‘only’ have been got £1K in benefits per month if you were entitled to them. There are reasons why people are entitled to benefits - we all know them - and the amounts aren’t plucked out of thin air. You could have taken a mortgage holiday or gone to interest only, or may have been entitled to an SMI loan. Housing benefit isn’t and shouldn’t be for mortgage payers who’re acquiring an asset.

isitmyturn · 26/10/2025 10:04

MsGiGi · 24/10/2025 16:17

I hear you.

I already have a S&S ISA and a SIPP. The money I have in PBs is my Emergency Fund (hence why I want this money to be easy access.)

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There are a few cash ISAs which allow you to withdraw and pay back in within a year.

KitsyWitsy · 26/10/2025 10:34

jonnybriggswasgreat · 26/10/2025 09:56

Digressing now but your post annoyed me and I feel compelled to comment. No, it isn’t an “absolute joke” that you and your husband would ‘only’ have been got £1K in benefits per month if you were entitled to them. There are reasons why people are entitled to benefits - we all know them - and the amounts aren’t plucked out of thin air. You could have taken a mortgage holiday or gone to interest only, or may have been entitled to an SMI loan. Housing benefit isn’t and shouldn’t be for mortgage payers who’re acquiring an asset.

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No, It is worse when you own your own home. All your benefit goes to the mortgage and you have nothing left to live on. I agree with you that benefits shouldnt be paying people's mortgages indefinitely but I think there should be some help for a certain period of time before you have to sell up.

I couldn't go interest only as my ex - the other owner wouldn't allow it and I couldn't do SMI either as neither he nor I want a hold on the house, which they do. Would you want the council/government putting charges on your home?

sammyspoon · 26/10/2025 12:15

@ICanSpellConfusionWithaK I really recommend Pete Matthews book and podcast for a simple introduction to personal finances and investing. You should be able to get a copy from the library. https://amzn.eu/d/52dAyk3

Amazon.co.uk

https://amzn.eu/d/52dAyk3?tag=mumsnet&ascsubtag=mnforum-money-matters-5432650-how-much-do-you-save-into-premium-bonds

Original poster

MsGiGi · 26/10/2025 12:28

KitsyWitsy · 25/10/2025 11:11

I think most people with FH win most months. 1-200 or so. That's been my experience other than last month when I won 1200. I've never not won anything. My lowest month I won £75. I keep it all separately and spend it on lovely things for myself. My money is from inheritance so I use my PB winnings as gifts from my dad. This year, I've had a new handbag and a holiday.

That’s a lovely idea - to use the winnings as a gift from your Dad.

OP posts:

ICanSpellConfusionWithaK · 26/10/2025 15:20

jonnybriggswasgreat · 26/10/2025 09:56

Digressing now but your post annoyed me and I feel compelled to comment. No, it isn’t an “absolute joke” that you and your husband would ‘only’ have been got £1K in benefits per month if you were entitled to them. There are reasons why people are entitled to benefits - we all know them - and the amounts aren’t plucked out of thin air. You could have taken a mortgage holiday or gone to interest only, or may have been entitled to an SMI loan. Housing benefit isn’t and shouldn’t be for mortgage payers who’re acquiring an asset.

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You know naff all about my situation here.

we lived off of our savings and took a mortgage holiday. Fortunately we were able to do both.

the joke is that if we didn’t have savings we would have only had 1k a month to live off of because we have a mortgage rather than renting a property. THAT is the problem. It wouldn’t even cover our housing so how are we then meant to pay for food and household bills? Our government expects us to immediately sell up, live off of proceeds and when we’re destitute will then help.

I’ve spent my entire life paying taxes and our government don’t then think that sometimes maybe we just need a bit of help to keep us on our feet? And I don’t mean into situation - we had the means to cover the shortfall (because we chose to save over spend, thank god we did!) but if we didn’t we would have lost everything.

I wouldn’t ever dream of having them pay my mortgage forever but £1000 a month is laughable.

ICanSpellConfusionWithaK · 26/10/2025 15:24

@sammyspoon thank you!

Somersetbaker · 26/10/2025 16:01

rainbowunicorn · 25/10/2025 10:16

I wouldn't keep it in cash. I would be investing it. Having £50,000 sitting in cash being eroded by inflation is absolutely crazy for me. I keep under 10k in easily accessible cash. E.g a savings account with as high an interest rate as I can get that allows up to 3 or 4 withdrawals a year without impacting the rate. This is money intended to see me through an emergency such as boiler breaking, white goods needing replaced, large car bill etc. Proper long term savings are invested rather than being held in cash. Starting with maxing out a S&S isa each year if i can before anything else.Yes the stock market has its ups and downs but historically has always performed way better than cash savings or premium bonds. Even if you do have to pay some tax on the returns. I also pay in to a SIPP each year and AVCs via salary sacrifice to my workplace pension to reduce my tax liability.
I think what baffles me is the mindset of many in the UK that refuse to invest their money. I want my money to make as much as it can for me.
I do understand that much more education around financial matters is needed but to me it just seems such a shame that people could be getting much better value for their hard earned cash than they do with it sitting in a cash ISA or premium bonds at around 3%
Is not intended to sneer or have a dig. As a country we shout loudly when our employers offer us below inflationary or zero pay rises, rightly so. Why do we accept it for our hard earned savings. Thats all, as I say not intended to be a dig at anyone. I grew up in a household with 2 parents that were financially illiterate. They could barely budget for the basics like shopping, fuel, clothing or anything else. As an adult I decided to find out as much as I could about financial matters and it just sort of snowballed from there.

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Is that you Rachel?

Somersetbaker · 26/10/2025 16:09

rainbowunicorn · 25/10/2025 11:07

Yes, i always say Mumsnet is the last place to go for financial advice. There is ao much wrong information spouted on here.

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But the general opinion is that IFA's, who are regulated with strict rules as to what advice they can give, are a bunch of charlatans who are only interested in how much commission they get and how much they can charge.

jonnybriggswasgreat · 26/10/2025 16:34

@ICanSpellConfusionWithaK I only know what you're posting here. I resent your implication that the taxpayer should be paying towards your mortgage even if it's 'just' for one month. It wouldn't have been my problem you and your husband couldn't pay your mortgage and pay for your other bills if your savings ran out. I don't care about the reasons. Adding to the list of what mortgage payers can do to help themselves in some scenarios is downsizing or taking in lodgers. There are many options is what I'm saying and the government will help you with an SMI loan.

You could always sell up, of course, and take your chances in the private rental sector - better terms and conditions with the RRB coming into law soon, not worrying about the cost of maintaining your home, and the availability of housing benefit should you end up in dire straits.

It's not a joke, it's just the reality of being a mortgage payer. As the saying goes, if you can't stand the heat, get out of the kitchen.

jonnybriggswasgreat · 26/10/2025 17:00

Sorry if that derail annoyed anyone. I'll end now by linking to the very positive and supportive group / thread PB's thread on here and a reminder that you have until the 31st to buy bonds that are eligible for December:

https://www.mumsnet.com/talk/money-matters/5420343-premium-bonds-october?page=1

SweetcornFritter · 26/10/2025 17:11

rainbowunicorn · 25/10/2025 10:16

I wouldn't keep it in cash. I would be investing it. Having £50,000 sitting in cash being eroded by inflation is absolutely crazy for me. I keep under 10k in easily accessible cash. E.g a savings account with as high an interest rate as I can get that allows up to 3 or 4 withdrawals a year without impacting the rate. This is money intended to see me through an emergency such as boiler breaking, white goods needing replaced, large car bill etc. Proper long term savings are invested rather than being held in cash. Starting with maxing out a S&S isa each year if i can before anything else.Yes the stock market has its ups and downs but historically has always performed way better than cash savings or premium bonds. Even if you do have to pay some tax on the returns. I also pay in to a SIPP each year and AVCs via salary sacrifice to my workplace pension to reduce my tax liability.
I think what baffles me is the mindset of many in the UK that refuse to invest their money. I want my money to make as much as it can for me.
I do understand that much more education around financial matters is needed but to me it just seems such a shame that people could be getting much better value for their hard earned cash than they do with it sitting in a cash ISA or premium bonds at around 3%
Is not intended to sneer or have a dig. As a country we shout loudly when our employers offer us below inflationary or zero pay rises, rightly so. Why do we accept it for our hard earned savings. Thats all, as I say not intended to be a dig at anyone. I grew up in a household with 2 parents that were financially illiterate. They could barely budget for the basics like shopping, fuel, clothing or anything else. As an adult I decided to find out as much as I could about financial matters and it just sort of snowballed from there.

Show quote history

you don’t pay tax on a s & s ISA.

PigletJohn · 26/10/2025 17:18

MsGiGi · 24/10/2025 16:17

I hear you.

I already have a S&S ISA and a SIPP. The money I have in PBs is my Emergency Fund (hence why I want this money to be easy access.)

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I agree that is a better place for long term growth.

I keep a cash buffer in PBs because I have no need to calculate if I am inside my Savings Allowance or to include prizes on a tax return.

Paying tax is not a problem for me but I value my time and try to avoid the time and effort of tax returns.

springintoaction2 · 26/10/2025 17:24

Rainbows and unicorns baffle me.

I have cash ISA and premium bonds - I've found that having more than £10k helps the wins - but some people do get lucky and win a large amount from a small investment.

@MsGiGi I used to put in whatever I could afford that month - so varied between £25 and £150. Since had a lump sum at retirement which has boosted it considerably.

Dobbysocks · 01/01/2026 00:19

jonnybriggswasgreat · 24/10/2025 19:04

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 know it’s an old thread but a few on here have mentioned topping up monthly. Doesn’t that automatically exclude you from draws when purchasing more?

JohnWickAteMyHamster · 01/01/2026 00:38

I have £25k in PB. I pay £200 a month in.
I've made more in winnings than I would have in interest in the last 12 months, and I like the chance of winning big! Plus easy access is useful too