Premium bonds - timing

mark99

Is there an optimum time to buy premium bonds during any month?

IE is it possible to withdraw savings getting max interest and buy the day before the monthly draw and still qualify if you win?

TIA

Mark

noh

Premium Bonds have to be held for a full calendar month before they are entered into the draw.
The optimum time to buy is on the last day of a month. The bond would be entered into the draw at the beginning of the second calandar month after purchase.
ie buy in December first draw entered would be February.

http://www.nsandi.com/products/pb/howitworks#when_bonds_go_into_the_draw

Jake'sGran

I have regular wins of £25. At the beginning of my purchase of premium bonds I gave instructions for all winnings to be reinvested. If you do this they don't have to wait a month to go into the next draw.

lr1277

If you are buying on the last day of the month, you can buy either over the internet or in a post office.

With the internet you have to use a debit card.

With the post office, you can give a cheque, so the money stays with you for a few more days. Though if buying from the post office, you have to complete a form you can only get from the post office.

I suspect it is also possible to buy over the phone, but again you would have to give your debit card details.

opinions4u

I think, before worrying about timing, you need to ask yourself the question "why the hell would I want to buy such a poor value product?" - then take it from there.

getmore4less

I think they are worth a punt once you have other angles covered.
Mortgage, S&S ISA/cash ISA,savings

Very handy near instant access emergency funds, just cash some in each month after the draw, money in the account in a few days.

Reinvesting the winnings is the most efficient way to buy.

middlepuss

Premium Bonds are an awful long term investment. The interets rate/prize fund is tiny. Your money gets eaten away by inflation.

If you want a punt, invest the money in a global tracker unit trust and spend half the dividends on Lottery tickets. You'll be better off, and you'll feed your secret belief that one day, one day you'll be lucky...

CLAPTON

middlepuss wrote: »

Premium Bonds are an awful long term investment. The interets rate/prize fund is tiny. Your money gets eaten away by inflation.

If you want a punt, invest the money in a global tracker unit trust and spend half the dividends on Lottery tickets. You'll be better off, and you'll feed your secret belief that one day, one day you'll be lucky...

a tracker?
10 years ago the ft100 was higher than it is today

jamesd

But middlepuss wrote about a global tracker and the MSCI AC World Index is at 328.400, up 1.55% over ten years, excluding dividends. Index is available here, change the market selection from World to All Country (DM+EM).

The FTSE 100 is also up once dividends are included.