Premium Bonds

Twentymac

Twentymac

Twentymac

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Joined
2 Oct 2007
Posts
1,595
Location
Birmingham
Just checking because i wasnt sure. when you go to cash them in you need to take them to a post office dont you ?

Cause im hoping to go cash some in tomorrow ?
 
Dunno, but you should get rid of all of them, they don't earn you very much :P
 
iviv said:
Dunno, but you should get rid of all of them, they don't earn you very much :P
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neither dose interest in the bank,but you have a chance of winning 1 mil ,I often win £50 and have just invested in an extra 2k !

You have to get a form from the post office and send the bonds off to cash them in takes about a week !
 
romperstomper said:
neither dose interest in the bank,but you have a chance of winning 1 mil ,I often win £50 and have just invested in an extra 2k !
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But the statistics are against you. Sure, you win from time to time, but the chances are so low that you'll get more interest from a bank account (The interest rate on the premium bonds works out at around 3.4%).
 
true - if you want a very minuscule chance to win a million then buy a lottery ticket tbh... premium bonds are not a very efficient form of investment.
 
romperstomper said:
You have to get a form from the post office and send the bonds off to cash them in takes about a week !
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Nah i've got this form off the site and i think you just have to fill all that in and go to the post office and they directly depost the money into your bank account.
 
dowie said:
true - if you want a very minuscule chance to win a million then buy a lottery ticket tbh... premium bonds are not a very efficient form of investment.
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They were when banks were offering 3-4% on interest accounts, plus the money is safer. If i'd want to win £1m id rather stick it in bonds than throw my money at the lottery rip off, no brainer imo if you dont win you get your money back.
 
Perhaps that's true, but the interest you're losing out on is real money - and probably equivalent to what you'd spend purchasing the lottery tickets that would give you the odds that you have of winning the £1m.

So it works out no different to buying lottery tickets. Mug betting, in other words.
 
I've got £100 in premium bonds. Miniscule amount really, compared to others who have tens of thousands in.

I just kept them in on the hope i'd win something, and seemed better than having 100 goes on the lottery.

The interest lost from not keeping that in the bank doesnt bother me one bit as it would be a tiny amount.
 
I have around £700 worth so far and I have a standing order of £100 towards them every month.

I have lots of disposable income at the end of the month and i'm trying to spread it around. They're tax free and my tax bracket is high so it's probably more attractive for me (and yes, i've read the moneysavingexpert article).
 
jamief said:
Bank interest / savings account can be 6% or more.

Interest on a premium bond is 3.5% or so.

I know where my money is.
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Interest paid out in prizes is 3.5%, but this is not the amount you can expect to get. There is no interest with premium bonds. If you don't win you get nothing.

The thing to remember with winning on Premium Bonds is that it is tax free while interest in an account is taxed. For example a £100 win on Premiun bonds is £100 in your pocket. £100 gross interest in a bank account is only £80 in your pocket (if basic tax payer) or £60 (if high band tax payer).

This is why those in the higher tax bracket favour bonds because saving is worth less to them.
 
Also, dont forget that the (for example) the value of the £100 you put into bonds today will be less when you (for example) take them out in a year's time.

So, if you dont win anything then you actually LOSE money due to inflation.
 
Vanilla said:
Interest paid out in prizes is 3.5%, but this is not the amount you can expect to get. There is no interest with premium bonds. If you don't win you get nothing.
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Yes, sorry, should have said "average interest" would work out at 3.5% or so, assuming you have a certain amount in premium bonds. There are FAR better ways to invest your money though.
 
Edinho said:
They were when banks were offering 3-4% on interest accounts, plus the money is safer. If i'd want to win £1m id rather stick it in bonds than throw my money at the lottery rip off, no brainer imo if you dont win you get your money back.
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The irony being that lottery tickets are a better bet than premium bonds... even though most people apparently can't grasp that fact.

If you want a safe investment, put it in the bank. If you want to gamble, buy lottery tickets. Premium bonds are a poor alternative to both.
 
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