Premium Bonds Article Discussion Area

Mark1010

polymaff said:

Thought that I'd try to put a handle on your grandparents' generosity.

In 1964, young couples looking for a new home could look at the average house for £3,360. At the time the average wage was £18 a year meaning that a house was only three-and-a-half times the annual wage of £960.

Classic Daily Mail.  Obsessed with house prices, innumerate and without sub-editors to trap the gaffes. ...

Hi Polymaff,

Did you grandparent's understand that they were buying their grandchidren lottery tickets? or did they think they were making an investment for you guys?

strawb_shortcake

My Mum and her siblings were given premium bonds when they were small think it was between £1-5. My mum was born in 51, so I guess it was some of the first. 
All the times it was talked about, it was always about winning a prize never an investment. 
The middle brother is the only one to have won, he had £25 about 10 years ago.
He's had better luck on the lottery as he won £30k back in September.

Saga

While the NSandI website information says it can take up to 8 days to receive the money from cashing in PBs, in practice/real life, what timescales have forum users experienced when cashing their bonds?

eskbanker

Saga said:

While the NSandI website information says it can take up to 8 days to receive the money from cashing in PBs, in practice/real life, what timescales have forum users experienced when cashing their bonds?

Where's that coming from? https://www.nsandi.com/help/manage-your-savings/make-withdrawal-from-savings states (for online/phone transactions):

When we get your instruction on a banking day before 20:00, we’ll process it that day. The payment will normally reach your account two banking days after that. If we get your instruction after 20:00 on a banking day, or on a weekend or bank holiday, we'll act as if we received it on the following banking day.

so if selling now (or any time before 8pm) the proceeds would reach you on Monday.

Saga

eskbanker said:

Saga said:

While the NSandI website information says it can take up to 8 days to receive the money from cashing in PBs, in practice/real life, what timescales have forum users experienced when cashing their bonds?

Where's that coming from? https://www.nsandi.com/help/manage-your-savings/make-withdrawal-from-savings states (for online/phone transactions):

When we get your instruction on a banking day before 20:00, we’ll process it that day. The payment will normally reach your account two banking days after that. If we get your instruction after 20:00 on a banking day, or on a weekend or bank holiday, we'll act as if we received it on the following banking day.

so if selling now (or any time before 8pm) the proceeds would reach you on Monday.

Oh, I'm sure the website used to say it took 8 days!   I suppose to rephrase my question, is the two-day timescale above largely adhered to in real life/practice or are people experiencing delays?

Eco_Miser

sheilavw said:

me and my siblings each have a £2 premuim bond bought in 1964 by our late Grandparents. None of us have ever won.  I think thats its unlikely we will. £2 was a lot of money then

My parents bought me 21 premium bonds between 1950 and 1971. One won £25 in that period, and another won £25 recently.  I guess that makes me luckier than you, at least with premium bonds, but you could still win a million or two going forward.

redpete

Mark1010 said:

eskbanker said:

Mark1010 said:

Hmm... Seems like a lot of people have been conned back in the 1960s and 70s.

When people were buying bonds back then, Bonds were being sold as an investment vehicle.

They were being told that if you buy now and acculate savings for a better future. (I think a lot of people back then have been mis-sold these products)

I am sure if they knew they were entering a lottery, they would not have bothered. 

They've never been an investment vehicle in the generally accepted sense and have always entailed capital protection (but not growth) while being in a random draw for prizes, although any prizes can obviously be re'invested'.

What sources do you cite for your assertions about what was allegedly promised?

No sources, this is what my family and others were told back in 1960's and they have always beleieved that it was an investment vehicle and not a lottery.

This sheme is actually worst than PPI.

But atleast today everyone know that's its a lottery where only the wealthy stands a chance in winning.

Sad... all thoses people sold lottery tickeks (bonds) which they thought were investmenting and now too old to really challenge it.

Here's a source, an actual advert for Premium Bonds from the 50s.
https://www.advertisingarchives.co.uk/detail/45652/1/Magazine-Advert/National-Savings-Premium-Bonds/1950s

Some hints that this might be a lottery: "prizes", "draw will be held", "prize fund will be"..
or another one

"£1 may win you £1000"
"Every £1 put into this new National Savings security is a £1 saved - but it can also win you a big money prize every month. You cant lose - You may win."
But maybe your parents / grandparents only saw the other adverts promoting it as an investment.

onthebench

Saga said:

eskbanker said:

Saga said:

While the NSandI website information says it can take up to 8 days to receive the money from cashing in PBs, in practice/real life, what timescales have forum users experienced when cashing their bonds?

Where's that coming from? https://www.nsandi.com/help/manage-your-savings/make-withdrawal-from-savings states (for online/phone transactions):

When we get your instruction on a banking day before 20:00, we’ll process it that day. The payment will normally reach your account two banking days after that. If we get your instruction after 20:00 on a banking day, or on a weekend or bank holiday, we'll act as if we received it on the following banking day.

so if selling now (or any time before 8pm) the proceeds would reach you on Monday.

Oh, I'm sure the website used to say it took 8 days!   I suppose to rephrase my question, is the two-day timescale above largely adhered to in real life/practice or are people experiencing delays?

As it happens I cashed in some Premium Bonds on Thursday 5th (around 11am) and the money was in my bank account on Monday 9th. So no delays here.

5avvyinvestor

Is everyone aware that if you send money to NS&I they acknowledge it pretty quickly but their procedures state it's 7 banking days to clear and be available to then be used to invest.  With two weekends involved it's the lions share of two weeks before you can work with the money in NS&I.  This is 2020 and that sort of time period is archaic.

polymaff

5avvyinvestor said:

Is everyone aware that if you send money to NS&I they acknowledge it pretty quickly but their procedures state it's 7 banking days to clear and be available to then be used to invest.  With two weekends involved it's the lions share of two weeks before you can work with the money in NS&I.  This is 2020 and that sort of time period is archaic.

They do say "up to" - but I've never seen "less than" !

I initiated three payments on Monday, AM, the funds were debited from my bank account on Tuesday, and they're still not shown as cleared.  Earning all of 0.15% in the mean time. Huh!