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

[Rotty]

Isn't like 10k+ where you start to get a return near the avg percent rate?

I thought premium bonds were terrible for low values

not terrible just high variance

 

[200sols]

Pretty much is terrible with £1000, the amount is just too low. Most years you'll win nothing with such an amount.

 

[Slam]

yeah, I'm trying to think of this holding as just a punt, like playing the lottery with the advantage that I'm not actually spending the money to buy tickets.

 

[413x]

Problem is 1000 with 5pc interest is a guaranteed 50 quid a year.

I don't think I'd be using premium bonds with less than 10k myself.

Yeah you might win big... But it's very very unlikely to win anything.

 

[TheOtherOption]

yeah, I'm trying to think of this holding as just a punt, like playing the lottery with the advantage that I'm not actually spending the money to buy tickets.

Agreed, I have some money I can set aside like this where it's safe but can also win me some money occasionally!

I've only had one £50 from £3k saved.

 

[throwaway4372]

Isn't like 10k+ where you start to get a return near the avg percent rate?

I thought premium bonds were terrible for low values

It's about £30k to have >50% chance of beating a savings account, for a higher rate tax payer.

Premium bonds are for when you've used up your isa allowance and have cash remaining (e.g. your emergency fund),
so you want to put that somewhere where you don't shafted by savings interest tax.

MSE link for reference, coz ppl have different circumstances so have to read up to see what's right for them:

Premium Bonds

Premium Bonds are the UK's most popular savings vehicle, but Martin Lewis' detailed analysis shows returns don't add up for many compared with savings.

www.moneysavingexpert.com

 

[mattyfez]

It's about £30k to have >50% chance of beating a savings account, for a higher rate tax payer.

Premium bonds are for when you've used up your isa allowance and have cash remaining (e.g. your emergency fund),
so you want to put that somewhere where you don't shafted by savings interest tax.

MSE link for reference, coz ppl have different circumstances so have to read up to see what's right for them:

Premium Bonds

Premium Bonds are the UK's most popular savings vehicle, but Martin Lewis' detailed analysis shows returns don't add up for many compared with savings.

www.moneysavingexpert.com

Yeah the table in section 3 sums it up well, but remember these figures are based on 'average luck'...

​ Amount saved in bonds Median average winnings Equivalent prize rate £100 Nothing 0% £1,000 Nothing 0% £10,000 £375 3.75% £25,000 £950 3.8% £50,000 £1,950 3.9%

 

[413x]

It's about £30k to have >50% chance of beating a savings account, for a higher rate tax payer.

Premium bonds are for when you've used up your isa allowance and have cash remaining (e.g. your emergency fund),
so you want to put that somewhere where you don't shafted by savings interest tax.

MSE link for reference, coz ppl have different circumstances so have to read up to see what's right for them:

Premium Bonds

Premium Bonds are the UK's most popular savings vehicle, but Martin Lewis' detailed analysis shows returns don't add up for many compared with savings.

www.moneysavingexpert.com

Yeah agreed. I won't be refilling when I take mine out as I don't fill my isa allowance after increasing my pension.

 

[Jakstaar2007]

I've got 10k in as of September 2022 and have won £475.
Not a spectator return. Started off well though as I've had 0 winnings since November!
I do need to look into an ISA though as I've got currently £4 sat in an ISA. I need to properly research what the best ISA is and get my head around it.

 

[CaptainRAVE]

So I’ve maxed my taxable interest allowance on savings accounts, so I figure premium bonds would be a bit of fun. Only about 6k in them so far, so my target now is to fill them. I think it works out at somewhere between 18-24 months to fill them, depending on other bills. They seem very user friendly to manage these days.