Premium Bonds

medical

I am intrested in investing in premium bonds, and would like to know the advantages and disadvantages. Does anyone know how best to go about it? Any ideas to which the reliable ones? All suggestions will be appreciated. Thank you.
Medical

YorkshireBoy

medical wrote:

All suggestions will be appreciated.

1. Search the 'chat forum' for 'premium bonds' (search box at top of this page) - your search will return dozens of threads on the subject.

2. Check out the NS&I website at http://www.nsandi.co.uk/products/pb/index.jsp

jobbingmusician

Most important thing - if you decide to do it, send them money before the end of the month.....If you send them money now, it will start going into the draw from the 1st February. If you send it on 1st Jan, it will not go into the draw until 1st March. So always invest at the end of the month (ideally the end of Jan so that it waits only 28 days before potentially earning interest, rather than 30 or 31 :rudolf: )

Stonk

jobbingmusician wrote:

Most important thing - if you decide to do it, send them money before the end of the month.....If you send them money now, it will start going into the draw from the 1st February.

Remember, if you apply by post, allow a few days for them to process it. I think if you send it now you would probably miss this month's boat. Leave it till late in the month, yes, but leaving it to the *very* last minute can turn out to be a Bad Thing.

You can buy PBs online (debit card only), which probably cuts out the delay and uncertainty.

mah_jong

.........or buy buy them at the PO too. Again no credit card payments but you are in the 'system'. :-)

lolly5648

You can also buy them instantly on a freephone number with no process time, ie on the last day of the month, so mimimum waiting time for the next draw.

Premium Bonds No: 0500 007 007

Aark

I am intrested in investing in premium bonds, and would like to know the advantages and disadvantages.

+ You could win a large prize.
+ Prizes are exempt from tax.
+ You can always get your money back.

- You could win nothing.
- You could win less than the interest you could get from a savings account (after tax, if applicable).
- Your money will be worth less due to inflation.

jobbingmusician

- the % return paid out in prizes isn't actually that great - when assessing any investment, you should be balancing out risk and % return.