Premium Bonds - If you post to say how much you've won, please also say how much you have invested.

silvagti said:
Premium bonds can be good but IMO they only really make sense if your a higher rate tax payer. Otherwise there are better, more consistent, rates of return to be had elsewhere.

They are a bit of fun at least though checking the monthly prize draw!
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Matter of personal opinion. A basic savings account will offer a slightly higher rate but there is zero chance of it giving you a life changing sum of money. The way I see it is having money in premium bonds the average holder might be getting 1 or 2% less on your money, but you are essentially paying that 1% or 2% for a small possibility of a big win.
 
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Jelly4mybelly said:
Matter of personal opinion. A basic savings account will offer a slightly higher rate but there is zero chance of it giving you a life changing sum of money. The way I see it is having money in premium bonds the average holder might be getting 1 or 2% less on your money, but you are essentially paying that 1% or 2% for a small possibility of a big win.
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Premium bonds are like playing the lottery (with worse odds) but getting your ticket money back even if you do not win
 
Jelly4mybelly said:
Matter of personal opinion. A basic savings account will offer a slightly higher rate but there is zero chance of it giving you a life changing sum of money. The way I see it is having money in premium bonds the average holder might be getting 1 or 2% less on your money, but you are essentially paying that 1% or 2% for a small possibility of a big win.
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I'm using it for my temporary fund.
Unlikely to beat interest. But at least there's a chance. I'll be cashing out in April or may. But while it's in there there's a chance to win.

If I put 12k in a 5pc flexible saver I will get so little... And I'll have to fill in SA as I'll breach the 500. So PB is well worth it for me.


I have 9.5k up for this month's draw and 12.5 for March.
 
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Jelly4mybelly said:
Matter of personal opinion. A basic savings account will offer a slightly higher rate but there is zero chance of it giving you a life changing sum of money. The way I see it is having money in premium bonds the average holder might be getting 1 or 2% less on your money, but you are essentially paying that 1% or 2% for a small possibility of a big win.
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I'm on 5.56% return from April 2023 so far... I think that's better that most flexiable accounts, don't expect it to be the same every year but there's always the dream of winning big and imho; that's worth losing out on some percentage of the intreast from a bank.

There's also the tax benefits that many people have already brought up. Winnings are tax free while anything over £1000 in intreast is taxable and the intreast income from an account can place you in a different tax band.
 
slinxy said:
I'm on 5.56% return from April 2023 so far... I think that's better that most flexiable accounts, don't expect it to be the same every year but there's always the dream of winning big and imho; that's worth losing out on some percentage of the intreast from a bank.

There's also the tax benefits that many people have already brought up. Winnings are tax free while anything over £1000 in intreast is taxable and the intreast income from an account can place you in a different tax band.
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The Personal Savings Allowance is only £500 in interest if you're a 40% tax payer too. I keep my general savings interest below 400 quid, and keep the rest in ISA/PB's.
 
Nutty667 said:
The Personal Savings Allowance is only £500 in interest if you're a 40% tax payer too. I keep my general savings interest below 400 quid, and keep the rest in ISA/PB's.
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Yeah... Hence why I'm putting over 25% of my gross at the moment, along with my yearly bonus into my pension as I'm going to clear £500 in interest from my savings account... else I'll be paying a lot of tax on interest and income.
 
100k would clear my mortgage, but I'd still have to work, but that wouldn't be a bad situation.

The million will make a difference for sure!

What shall we do first slinxy.......lol
 
Mercenary Keyboard Warrior said:
Premium bonds are like playing the lottery (with worse odds) but getting your ticket money back even if you do not win
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This is why I use them. I started saving last year in order to pay off a chunk of my mortgage at the end of this year. I considered various savings products, but decided to 'gamble' it. I've done okay so far, averaging about a 4% return.
 
~Mike~ said:
NS&I is reducing the prize fund rate for Premium Bonds from 4.65% to 4.40% from the March 2024 draw.
The odds of any £1 Bond number winning a prize will remain the same at 21,000 to 1.

nsandi-corporate.com

PREMIUM BONDS PRIZE FUND RATE REDUCED FROM MARCH 2024 DRAW | NS&I Corporate Site

New 4.40% prize fund rate for Premium Bonds from March 2024 drawOdds remain the same at 21,000 to 1 for each £1 BondNS&I required to strike a balance between the interests of savers, taxpayers and the broader financial services sectorNS&I is reducing the prize fund rate for Premium Bonds from...
nsandi-corporate.com nsandi-corporate.com
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That's annoying, just opened an account and bought £250 of my first ever premium bonds, so can be in the March draw.

Still at least have a chance, I also see it as playing the lottery without paying.
 
Depending on if I win anything this month depends on my next steps. Win something then I'll stick to my guns and pull my bonds out as I need to clear credit card debts that go from being interest free.

Don't win anything then I'll pull it all out, clear my debts then apply for a loan and get myself a new (to me) car. :D
 
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