Premium Bonds

jw2003

Apologies is this has been done before but I'm a newbie and didn't see anything obvious

Are they actually worth it?

exel1966

jw2003 wrote: »

Apologies is this has been done before but I'm a newbie and didn't see anything obvious

Are they actually worth it?

Newbie ? Since April !! The answer is here ;-

http://www.moneysavingexpert.com/savings/premium-bonds

and if that doesn't help you just use the search facility where you'll find dozens of threads on PB's

leveller2911

Ive had £10k worth since last May and so far I have 7x£25 wins (1.75% return so far If I don't win again).Just applied for another £9k worth..

I would rather have a little gamble with them than get the pathetic interest rates with the banks.

Theres always a chance ........TBH when 12 month fixed bond rates are back up to around 6.5% I will put them back in bonds.

Leviathan2009

You have little chance of winning with small investments - yes thats true. But at the end of the day - if it cash you have lying spare having met your savings targets and paid your bills - then whats the problem with having a small flutter with £100.

Trick is make sure you have your nest egg saved up in savings accounts earning interest - before having a speculative flutter.

jw2003

exel1966 wrote: »

Newbie ? Since April !! The answer is here ;-

http://www.moneysavingexpert.com/savings/premium-bonds

and if that doesn't help you just use the search facility where you'll find dozens of threads on PB's

I think i signed up to look at something and then never came back

Thanks - will take a look

Hungerdunger

leveller2911 wrote: »

Ive had £10k worth since last May and so far I have 7x£25 wins (1.75% return so far If I don't win again).Just applied for another £9k worth..

I would rather have a little gamble with them than get the pathetic interest rates with the banks.

Theres always a chance ........TBH when 12 month fixed bond rates are back up to around 6.5% I will put them back in bonds.

If you'd been prepared to lock that £10k away for a couple of years, you could easily have got 4% gross which would give you a net income of £320. Currently there are several good offers of well over 4% - Nationwide are offering a three year fix at 4.7% - hardly pathetic.

exel1966

Hungerdunger wrote: »

If you'd been prepared to lock that £10k away for a couple of years, you could easily have got 4% gross which would give you a net income of £320. Currently there are several good offers of well over 4% - Nationwide are offering a three year fix at 4.7% - hardly pathetic.

But then again an income of £320 on 10K of PB's is not too difficult to achieve with the chance of a whole lot more and the probability of earning at least £200 is greater than 80%.
If you're a higher rate tax payer PB's are well worth the possibilities and probabilities regardless.

Aegis

exel1966 wrote: »

But then again an income of £320 on 10K of PB's is not too difficult to achieve with the chance of a whole lot more and the probability of earning at least £200 is greater than 80%.
If you're a higher rate tax payer PB's are well worth the possibilities and probabilities regardless.

Actually, the chance of earning £200 or more is 19.7% for £10,000 worth of premium bonds.

lilac_lady

If you're just starting to save premium bonds, now is the time when savings interest rates are so low. You have the (small) chance of winning some money and you can cash them in and buy an ISA or bond when (if) interest rates go up. Good luck, hope you win.

Aegis

lilac_lady wrote: »

If you're just starting to save premium bonds, now is the time when savings interest rates are so low. You have the (small) chance of winning some money and you can cash them in and buy an ISA or bond when (if) interest rates go up. Good luck, hope you win.

Of course, that could waste this year's ISA allowance...

dunstonh

Ask yourself this question.

Would you put the money in a normal savings account and each month draw the interest to take to the local shop to buy lottery tickets? That is effectively what you are doing with Premium bonds.