Premium bonds...how does it work exactly?

dunstonh

So, in summary, you put your hard earned money in this great big raffle ticket event. Over time, inflation eats into your money so £10,000 put in premium bonds 10 years ago is worth around £7,000 in todays money. Then over that time you hope that your number comes up and you win something.

I dont know what the current win rate on scratch cards is but if you take that 5.2% on the better paying accounts and buy £520 of scratch cards (with a 10k savings pot) that is the same sort of principle.

nsandiexpert

Also once you have a Holders Number you can set a Standing Order up for a minimum of £50.

although I assume thats the time for them to send you the cheque and you then still have to cash it.

And no - they can pay it straight to your bank account.

tonyivb

When we sold our flat in March we put some of the proceeds in Premium Bonds as we fancied a small gamble.

As we are now buying a house we have cashed in some of them to pay the deposit and it has worked very smoothly so far...

Monday 2nd October - Posted form & bonds to NS&I to cash in
Wednesday 4th October - Received back supporting documents
Friday 6th October - Proceeds were paid directly into our Solicitors account

You can opt to receive a warrant/cheque, but it's much easier and quicker to get the money paid directly into a bank/BS account