Premium Bonds

hkw1

Hi

I have recently sold a property and have £26,000 to invest. It's currently in the Newcastle Building Society earning 5.02% (gross), but I wondered whether I'd be better off investing some/all in Premium Bonds? It would be a relatively short term investment as planning to buy again soon and am guessing I'd need to get at it reasonably easily?

Anyone any ideas?

Thanks

nrsql

If you win a million then you will be a lot better off. If you don't win anything then a bit worse off.

Remember that you don't get included in the next draw for premium bonds so if you need the money soon it's not worth it.

Put 3k in an isa if you don't have one and another 3k after April 5th rather than leaving it in a taxable a/c.

pennies2pounds_3

If your going to put money in premium bonds, do it soon (before the month end ) then your bonds will be in the may draw. I held bonds for 2 years and actually did very well on my investment/return. Unfortunately I had to take them out due to unforseen circumstances. Just a little word of advice though, try to get bonds in groups of 5000 as there 'seems' to be a better chance of winning with groups of this figure dont ask me why its that I read it on here somewhere. Hope this helps and good luck.

ReportInvestor

They are worth considering if you are a higher rate taxpayer.

If you aren't, and the £26K is your life savings, I'd personally want to get a good return I could be more sure of.

rutters

a few Qs..never had Premium Bonds sooo..

a. Whats the best way to buy them? can you pay cash at the P.O.?

b. If you win, do they notify you and does that bond stay in next month's draw? How do you get paid?

c. How do you cash them in?

cheers

m_will

rutters wrote:

a few Qs..never had Premium Bonds sooo..

a. Whats the best way to buy them? can you pay cash at the P.O.?

1. You can buy them over the phone using a debit card on 0500 007 007
2. You can also buy them on the Internet at https://www.nsandi.com
3. You can also buy them at the Post Office with a debit card, cash or a cheque (payable to Post Office Limited)
4. You can buy them by post

I would recommend using either the phone or internet for convenience and if you are quick and do it before the end of the month you can get your bonds in for the May draw. I would strongly recommend against taking a large amount of cash to the Post Office for obvious reasons.

rutters wrote:

b. If you win, do they notify you and does that bond stay in next month's draw? How do you get paid?

If your bond wins they will write to you and the bond stays in for the next draw. You will receive a cheque through the post for small prizes but they will contact you for larger wins (don't know much about this as I have never won anything larger than £50).

rutters wrote:

c. How do you cash them in?

You can cash them in by filling in a form (available at the Post Office). Repayment is by direct credit to an account but I think you can have a cheque if you prefer.

Have a look at www.nsandi.com for loads more info.

Good luck

rutters

Thanks very much..that about covers everything.

MikeLB

And dont forget Tesco have teamed up with NS&I now too so you can get all the forms for this and other NS&I products in your local store! And no I dont work for them! But it is very handy I have to say!

chesky369

MikeLB - but you can't actually buy the bonds in Tesco, so why is it handier than buying them on-line?

davelewis

I have done exactly this. I sold a property last year and put in the max £30k into premium bonds.

So far i win between £50 - £100 most months. This month i won £300 - so if it carries on like this i will hopefully beat the interest i would have had in a mediocre savings account. Plus the fact that you cannot beat the buzz feeling on the 1st of every month of potentially winning big!!

Go for it i say. It's a bit like gambling - but you can still get your money back!!

Mikeyorks

I get around a 3% return on mine, which suits me fine as the tax free status keeps me just below the HR tax band.

But I would recommend checking if you've won anything around the 3rd of the month. And particularly if any prizes are via Royal Mail as opposed to re-invested.

You only need your Bond holder number and this link :

http://www.nsandi.com/products/pb/haveYouWon.jsp?section=haveYouWon&view=1

- but it does then take up to another 14 days for the £50 / £100 to materialise. But I'm hoping to discover if the higher values arrive earler!.