Premium bonds? Worth it?

DiscoDave said:
My Premium bonds account has returned more money than what I would have got with a standard cash ISA.

Those saying "no" - Why?
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Because you can get more elsewhere, unless you’re earning so much interest you’re exceeding your interest tax allowance?

Edit: There’s also the chance of bank interest increasing in the future so if you’ve already got money in a cash ISA, you have the benefits of tax free earnings on the maximum amount possible.
 
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0.2% in savings and 0.35% in cash ISA with Lloyds.

This is why I was asking. Cheers for the answers though people. Lots to think about however it's interesting to hear people's experiences.
 
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Santander still do a 1.5% current account (do your sums - there is a fee for it, plus other requirements).

There’s a few banks that do 3 - 5% savings accounts, TSB one of them.
 
Plus, depending on how long you want to lock your money up you could put it in a FTSE tracker and get far higher returns with very low risk. The economy may crash but if you can wait a few more years before withdrawal you will ride the next boom.
 
I've some money in them. I've had several £25 wins over the last 12 months. I'd say that equals about 1% of the total.
 
I have had Bonds for the last 2 years - I have won £150 so far which is well above what I would have gained in interest in an ISA, But it is down to luck you need to remember that.
 
DiscoDave said:
Examples? Are they also instant access like PB? Can you put as much in those accounts as PB?
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Santander 123. £20k max at 1.5% plus cash back, there is a small fee but if you use it right the cash back alone will cover the fees and give you something left over.

You can use the high interest (3 - 5%) savings accounts already mentioned for higher returns but they tend to limit you to a few thousand each.

If you still have money left over after that I would consider riskier investments such as the likes of Funding Circle or a decent S&SISA.
 
Ive got quite a bit in Premium Bonds, I do like it. I understand the overall return is low, but for me its my lottery basically. Savings there with low return but a super slim chance of winning big.

ISA's are so low that its not making much of a difference anyways
 
Axeboy said:
Ive got quite a bit in Premium Bonds, I do like it. I understand the overall return is low, but for me its my lottery basically. Savings there with low return but a super slim chance of winning big.

ISA's are so low that its not making much of a difference anyways
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The problem is, you are better off putting the money into a regular savings product, and with the additional guaranteed growth buy some actually lottery tickets.
 
if columbo has won nothing in 23 years that would be astonishing bad luck. is he sure she even bought any? is he sure it wasn't set up so that if he does win it buys more bonds rather than him receiving a cash gift?

is he sure his gran hasn't been getting his wins for him?
 
I have about £20 in PB from when i was a nipper (so at least 50 years)
NEVER had so much as a pound back :(
Complete waste for me
My dad has a few grand of them(not sure how much)and seems to have £25 nearly every month,lucky sod
 
Parents have done well out of PB over the years but they have regularly had the max amount invested, many small prizes and one 10k. Daughter also won £25 and only has a couple of hundred. :)

Its quick and easy to invest and quick and easy to cash them in, also safe.
 
ANDARIAL said:
I have about £20 in PB from when i was a nipper (so at least 50 years)
NEVER had so much as a pound back :(
Complete waste for me
My dad has a few grand of them(not sure how much)and seems to have £25 nearly every month,lucky sod
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The problem is the mean returns is meaningless because you either get a prize or you don't, and the vast majority of bonds wont win, and thus the vast majority of people with PMs don;t win either.

The median return is 0. So it is perfectly normal to never recieve anythng ever unless you have a decent amount of PB
 
ANDARIAL said:
I have about £20 in PB from when i was a nipper (so at least 50 years)
NEVER had so much as a pound back :(
Complete waste for me
My dad has a few grand of them(not sure how much)and seems to have £25 nearly every month,lucky sod
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having £20 in premium bonds is nothing so i'm not surprised.

people that have £20K in them only get a few prizes every month or two. so you have 1000 times less than this means you should be due like 1 prize every 200 years. so yeah nothing to do with bad luck tbh. you don't have any to warrant winning.
 
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