Premium bonds

aris

Has anyone here actually won anything? Care to share your story?

jem16

How about reading this lengthy thread on it.

http://forums.moneysavingexpert.com/showthread.html?t=81778

crossleydd42

When I worked on the Post Office counter in 1959/60, I issued myself one (for £1). It did nothing for 25 years (about 1986), then paid out £100. In order not to tempt fate, I quickly sold it!

tomstickland

The National Savings website quotes an average annual return on Premium bonds of 3.something %. You're better off with a 5% savings account.

bonvonnie

i've been quite lucky in the last three months.
won £100 in December 2005
won £100 in January 2006
won £150 in February 2006

I'm praying for the million next month

ManAtHome

tomstickland wrote:

The National Savings website quotes an average annual return on Premium bonds of 3.something %. You're better off with a 5% savings account.

Unless you're a higher-rate taxpayer in which case it's around the same (only you get the chance to win a lot more or earn a lot less with PBs).

newmoneyuser

The average annual return of 3% is so low that it only makes sense to purchase them if you are a 40% tax payer as the average return matches a 5% saving account.

You have to also take into account that 3% is the average so you can end up with less (few wins) or more (large number of wins).

jenniferpa

Of course, some people like the (very small) element of gambling that PB's provide. My elderly Mother, who would never buy a lottery ticket, (and who has about 25K in PB) likes that monthly letter (you've won £50) and in fact has averaged around 6% return over the last 3 years. Having said that, friend and her DH, who each have the maximum (30K?) have only got a rate of less than 2% over the same time period. I'm not sure that you can compare only on the basis of return - there's an intangible element there, and it probably beats putting the money on a horse.

Jennifer