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  • FIRST POST
    • fly-catchers
    • By fly-catchers 11th Feb 18, 11:21 AM
    • 165Posts
    • 318Thanks
    fly-catchers
    Online Premium Bond account
    • #1
    • 11th Feb 18, 11:21 AM
    Online Premium Bond account 11th Feb 18 at 11:21 AM
    I recently opened up an online NS&I account and brought £1000 worth of premium bonds. I have a few ancient bonds going back to 1958, can I add these to my online account and keep them all in one place. I do have two different holders numbers. The new online one and a paper one which I was issued with from NS&I in the early 90's.

    Also since getting my first RM NRA60 pension alongside my wages while I still carry on working. I have upped my S&S ISA monthly payments from £300 to £600 from this month. Given the current correction on the stock market is that a good or bad move? As I don't intend cashing my ISA anytime soon I guess it's a ok move! I have maxed out on my various higher interest current accounts and any saving accounts connected to them. Which is why I thought I would put some into premium bonds as well.
Page 1
    • ValiantSon
    • By ValiantSon 11th Feb 18, 11:36 AM
    • 843 Posts
    • 680 Thanks
    ValiantSon
    • #2
    • 11th Feb 18, 11:36 AM
    • #2
    • 11th Feb 18, 11:36 AM
    Also since getting my first RM NRA60 pension alongside my wages while I still carry on working. I have upped my S&S ISA monthly payments from £300 to £600 from this month. Given the current correction on the stock market is that a good or bad move? As I don't intend cashing my ISA anytime soon I guess it's a ok move! I have maxed out on my various higher interest current accounts and any saving accounts connected to them. Which is why I thought I would put some into premium bonds as well.
    Originally posted by fly-catchers
    Nobody knows whether or not the market correction will continue, or whether it will turn into a crash, or whether it will stabilise for a period, or whether prices will recover quickly. It is impossible to time the market. Given that, if you are investing within your risk tolerance, and over a sensible timeframe, then putting more disposable cash into investments now should, over the long term, see you make better returns than holding cash.

    You would still get a better guaranteed return having the money in a different savings account than in premium bonds, e.g. ICICI Bank at 1.35% (almost at the mythical 1.4% premium bonds return). Alternatively, if you don't need easy access then Atom Bank will give you a 1.95% fixed rate savings bond over 1 year. I don't see the point of gambling on premium bonds when you can get these returns guaranteed.
    • AndyPK
    • By AndyPK 11th Feb 18, 11:59 AM
    • 2,634 Posts
    • 720 Thanks
    AndyPK
    • #3
    • 11th Feb 18, 11:59 AM
    • #3
    • 11th Feb 18, 11:59 AM
    yeap you should be able to add old premium bonds.

    There is also an app which is good, and you can add different holders names to it. (
    • fly-catchers
    • By fly-catchers 11th Feb 18, 12:28 PM
    • 165 Posts
    • 318 Thanks
    fly-catchers
    • #4
    • 11th Feb 18, 12:28 PM
    • #4
    • 11th Feb 18, 12:28 PM
    You would still get a better guaranteed return having the money in a different savings account than in premium bonds, e.g. ICICI Bank at 1.35% (almost at the mythical 1.4% premium bonds return). Alternatively, if you don't need easy access then Atom Bank will give you a 1.95% fixed rate savings bond over 1 year. I don't see the point of gambling on premium bonds when you can get these returns guaranteed.
    Originally posted by ValiantSon
    As a postie I see a lot of regular Premium Bonds wins going to people on rounds I have done. Some get two or three most months so I guess they must have the max invested or just very lucky or both! I did have a ICICi account a while back and found it rather odd when trying the its access its old fashioned web site! But may well open another one up.
    • AndyPK
    • By AndyPK 11th Feb 18, 12:40 PM
    • 2,634 Posts
    • 720 Thanks
    AndyPK
    • #5
    • 11th Feb 18, 12:40 PM
    • #5
    • 11th Feb 18, 12:40 PM
    Yes they would have a lot invested. And only be getting £25 a month.

    Not sure why they would be getting more than 1 letter a month though.
    • PeacefulWaters
    • By PeacefulWaters 11th Feb 18, 12:46 PM
    • 7,738 Posts
    • 9,700 Thanks
    PeacefulWaters
    • #6
    • 11th Feb 18, 12:46 PM
    • #6
    • 11th Feb 18, 12:46 PM
    Nobody knows whether or not the market correction will continue, or whether it will turn into a crash, or whether it will stabilise for a period, or whether prices will recover quickly. It is impossible to time the market. Given that, if you are investing within your risk tolerance, and over a sensible timeframe, then putting more disposable cash into investments now should, over the long term, see you make better returns than holding cash.

    You would still get a better guaranteed return having the money in a different savings account than in premium bonds, e.g. ICICI Bank at 1.35% (almost at the mythical 1.4% premium bonds return). Alternatively, if you don't need easy access then Atom Bank will give you a 1.95% fixed rate savings bond over 1 year. I don't see the point of gambling on premium bonds when you can get these returns guaranteed.
    Originally posted by ValiantSon
    Ignoring the deposit months, the PB pot is still higher than 1.35%.

    I'll carry on gambling my interest in the current climate.
    • Grandmama
    • By Grandmama 11th Feb 18, 12:56 PM
    • 99 Posts
    • 167 Thanks
    Grandmama
    • #7
    • 11th Feb 18, 12:56 PM
    • #7
    • 11th Feb 18, 12:56 PM
    To andypk. Each premium bond win gets sent in a letter. So if you Get 3 wins in one month, that is 3 cheques, one i n each letter.
    • ValiantSon
    • By ValiantSon 11th Feb 18, 1:00 PM
    • 843 Posts
    • 680 Thanks
    ValiantSon
    • #8
    • 11th Feb 18, 1:00 PM
    • #8
    • 11th Feb 18, 1:00 PM
    As a postie I see a lot of regular Premium Bonds wins going to people on rounds I have done. Some get two or three most months so I guess they must have the max invested or just very lucky or both! I did have a ICICi account a while back and found it rather odd when trying the its access its old fashioned web site! But may well open another one up.
    Originally posted by fly-catchers
    The statistical chance of winning enough to beat the interest offered elsewhere is low and definitely stacked against you. Just because you see regular payouts to some people doesn't mean that the chances are good. You risk falling into the trap of confirmation bias if you follow that line.

    If you don't like ICICI then you can get 1.3% with Tesco Bank, which you are still, statistically, not likely to beat with premium bonds.
    Last edited by ValiantSon; 11-02-2018 at 1:10 PM. Reason: Typo
    • ValiantSon
    • By ValiantSon 11th Feb 18, 1:02 PM
    • 843 Posts
    • 680 Thanks
    ValiantSon
    • #9
    • 11th Feb 18, 1:02 PM
    • #9
    • 11th Feb 18, 1:02 PM
    Ignoring the deposit months, the PB pot is still higher than 1.35%.

    I'll carry on gambling my interest in the current climate.
    Originally posted by PeacefulWaters
    Your choice, but the majority of people will not realise that mythical 1.4% annual return. I see no good reason for the majority of people in this country to use premium bonds: they really are a poor choice for most (but a good choice for a small minority).
    • PeacefulWaters
    • By PeacefulWaters 11th Feb 18, 1:21 PM
    • 7,738 Posts
    • 9,700 Thanks
    PeacefulWaters
    Your choice, but the majority of people will not realise that mythical 1.4% annual return. I see no good reason for the majority of people in this country to use premium bonds: they really are a poor choice for most (but a good choice for a small minority).
    Originally posted by ValiantSon
    But 1.4% is the value of the prize fund.

    For easy access no hoops saving it's decent.

    You can't just magically magic away a jackpot that they pay.
    • EachPenny
    • By EachPenny 11th Feb 18, 8:50 PM
    • 4,607 Posts
    • 9,418 Thanks
    EachPenny
    But 1.4% is the value of the prize fund.

    For easy access no hoops saving it's decent.

    You can't just magically magic away a jackpot that they pay.
    Originally posted by PeacefulWaters
    The winnings are also free of tax, so quite useful if you are a taxpayer and have used up all your allowances
    "In the future, everyone will be rich for 15 minutes"
    • ValiantSon
    • By ValiantSon 11th Feb 18, 10:38 PM
    • 843 Posts
    • 680 Thanks
    ValiantSon
    But 1.4% is the value of the prize fund.

    For easy access no hoops saving it's decent.

    You can't just magically magic away a jackpot that they pay.
    Originally posted by PeacefulWaters
    Yes, I understand what the 1.4% figure pertains to.

    For "easy access no hoops saving" there are easy access savings accounts that actually pay real interest - guaranteed!

    Yes, they do pay a jackpot, but your chances of winning it are infinitesimally small.

    For the large majority of people, premium bonds are a poor option.
    • ValiantSon
    • By ValiantSon 11th Feb 18, 10:39 PM
    • 843 Posts
    • 680 Thanks
    ValiantSon
    The winnings are also free of tax, so quite useful if you are a taxpayer and have used up all your allowances
    Originally posted by EachPenny
    Which is one of the criteria that might suggest it is worth an individual considering using premium bonds, but even then it is by no means an obvious choice.
    • firestone
    • By firestone 11th Feb 18, 11:25 PM
    • 146 Posts
    • 54 Thanks
    firestone
    There is nothing people like more then having a flutter so i think most people who have bought bonds know the 1.4% is an estimate but have decided that with rates so low they will take a chance unlike the Lottery you don't lose your money and can be cashed in quick.Would guess most people have savings before buying in the first place and if they have enough to buy the max they will probably cover the lost interest.I have a retired relative who has in his words 40 ish in bonds and gets 2 or 3 £25 prizes most months and a couple of £500 that i know about- this over the last 5 years after taking out with pension lump sum
    I would also guess if the members of my family are anything to go by that some people who have bonds don't like stocks & shares and are using them as an alternative and also with savings accounts not instead of
    Last edited by firestone; 11-02-2018 at 11:28 PM.
    • ValiantSon
    • By ValiantSon 12th Feb 18, 12:01 AM
    • 843 Posts
    • 680 Thanks
    ValiantSon
    There is nothing people like more then having a flutter so i think most people who have bought bonds know the 1.4% is an estimate but have decided that with rates so low they will take a chance unlike the Lottery you don't lose your money and can be cashed in quick.Would guess most people have savings before buying in the first place and if they have enough to buy the max they will probably cover the lost interest.I have a retired relative who has in his words 40 ish in bonds and gets 2 or 3 £25 prizes most months and a couple of £500 that i know about- this over the last 5 years after taking out with pension lump sum
    I would also guess if the members of my family are anything to go by that some people who have bonds don't like stocks & shares and are using them as an alternative and also with savings accounts not instead of
    Originally posted by firestone
    None of this counters the fact that premium bonds are, for the majority of people, a poor choice. Just because people like doing something doesn't mean it is a good choice.

    I know that I am not going to persuade people that they are a poor choice, but it doesn't mean that they aren't.

    Each to their own. I prefer to actually get a return on my money.
    • eskbanker
    • By eskbanker 12th Feb 18, 12:45 AM
    • 6,294 Posts
    • 6,361 Thanks
    eskbanker
    There is nothing people like more then having a flutter
    Originally posted by firestone
    Speak for yourself! There are quite a few things I like more than gambling* but this is a family site....



    * Obviously I mean the likes of:

    Raindrops on roses and whiskers on kittens,
    bright copper kettles and warm woolen mittens,
    brown paper packages tied up with strings,
    these are a few of my favorite things.

    Cream colored ponies and crisp apple strudels,
    door bells and sleigh bells and schnitzel with noodles.
    Wild geese that fly with the moon on their wings.
    these are a few of my favorite things.

    Girls in white dresses with blue satin sashes,
    snowflakes that stay on my nose and eyelashes,
    silver white winters that melt into springs,
    these are a few of my favorite things.

    When the dog bites, when the bee stings,
    when I'm feeling sad,
    I simply remember my favorite things,
    and then I don't feel so bad.
    • PeacefulWaters
    • By PeacefulWaters 12th Feb 18, 7:28 AM
    • 7,738 Posts
    • 9,700 Thanks
    PeacefulWaters

    For the large majority of people, premium bonds are a poor option.
    Originally posted by ValiantSon
    For the large majority they're several times better than is obtainable from your main bank.

    Even stripping out the jackpot they compare favourably in the current climate.
    Last edited by PeacefulWaters; 12-02-2018 at 7:39 AM.
    • ValiantSon
    • By ValiantSon 12th Feb 18, 9:43 AM
    • 843 Posts
    • 680 Thanks
    ValiantSon
    For the large majority they're several times better than is obtainable from your main bank.

    Even stripping out the jackpot they compare favourably in the current climate.
    Originally posted by PeacefulWaters
    That's just nonsense. I'm sorry, I was being polite before, but you are just talking rubbish.
    • PeacefulWaters
    • By PeacefulWaters 12th Feb 18, 12:56 PM
    • 7,738 Posts
    • 9,700 Thanks
    PeacefulWaters
    That's just nonsense. I'm sorry, I was being polite before, but you are just talking rubbish.
    Originally posted by ValiantSon
    Well back it up with some numbers then.

    And to confirm again, I am talking about easy access savings accounts as a comparator, not direct debit muddling current accounts.

    Best three easy access buys pay between 1.22% and 1.35%. PBs pay 1.40% via prizes.

    Big provider easy access accounts:

    Halifax 0.35%.
    Lloyds 0.35%.
    Santander 0.60%.
    HSBC 0.45%.
    Barclays 0.25%.

    Those numbers are several times smaller than 1.40%.

    For "easy access no hoops saving" there are easy access savings accounts that actually pay real interest - guaranteed!
    I'll take my chances with the smooth curve of probability and 1.40% over and above 0.35% from an online savings account.
    Last edited by PeacefulWaters; 12-02-2018 at 1:16 PM.
    • ValiantSon
    • By ValiantSon 12th Feb 18, 2:32 PM
    • 843 Posts
    • 680 Thanks
    ValiantSon
    Well back it up with some numbers then.

    And to confirm again, I am talking about easy access savings accounts as a comparator, not direct debit muddling current accounts.

    Best three easy access buys pay between 1.22% and 1.35%. PBs pay 1.40% via prizes.

    Big provider easy access accounts:

    Halifax 0.35%.
    Lloyds 0.35%.
    Santander 0.60%.
    HSBC 0.45%.
    Barclays 0.25%.

    Those numbers are several times smaller than 1.40%.

    I'll take my chances with the smooth curve of probability and 1.40% over and above 0.35% from an online savings account.
    Originally posted by PeacefulWaters
    Oh dear.

    Premium bonds do not pay 1.4% interest! They pay no interest at all. You have the possibility of winning prizes, but you could get nothing.

    With the maximum £50,000 in premium bonds and average luck you could expect to win £500 in a year, which is 1% and, of course, half of all people will, by definition, have worse luck. In a savings account paying 1.35% (available from an FSCS protected bank) you would be guaranteed a return of £675.

    You cannot exclude FSCS protected banks because they are not household names. Your money is just as safe with them. However, if you want to play that silly game then Tesco will pay 1.3% interest, which would be £650.

    The probability is that you will get a smaller return from premium bonds.

    I'll say it again, you are talking utter rubbish.

    If you want to put your money in premium bonds then that is your own foolish choice, but it is not a better option for the majority of people than using savings accounts.
    Last edited by ValiantSon; 12-02-2018 at 2:36 PM. Reason: Typo
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