Premium Bonds Article Discussion Area

Paul_Herring

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.

Given that I've frequently put money on the 27th of a month, and had it shown on account shortly after, and (correctly) entered in the draw about 32 days later, I'm not sure what you're referring to...

eskbanker

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.

Everyone who's read the Ts & Cs at https://www.nsandi.com/files/asset/pdf/premium-bonds-brochure.pdf should be aware of this, yes, although clearance timescales are dependent on method of deposit:

How long deposits take to clear
You can only take money out if you have enough cleared funds in your account. An electronic transfer deposit received by 18:30 on a banking day will normally clear on the next banking day. Debit card and cheque deposits will clear no later than the seventh banking day after being received. 

5avvyinvestor said:

This is 2020....

....but it may not be when your payment clears, if made from now on....

Oasis1

I just applied for an account and put in my debit card details to transfer funds. Then a note on the website told me I wouldn't be entered into a prize draw until March?!

I've tried looking at the MSE PB guide but can't see any guidance on the best time to deposit funds to get as close to the next prize draw as possible - though it is 11pm and my brain is mush. If it is there, apologies, if not, could some guidance please be added?

Oasis1

Oasis1 said:

I just applied for an account and put in my debit card details to transfer funds. Then a note on the website told me I wouldn't be entered into a prize draw until March?!

I've tried looking at the MSE PB guide but can't see any guidance on the best time to deposit funds to get as close to the next prize draw as possible - though it is 11pm and my brain is mush. If it is there, apologies, if not, could some guidance please be added?

I found it... apologies:

• How long does it take for bonds to be entered into a prize draw?

  In general, you need to hold the bonds for a full month before they're eligible to win. So, buy bonds any time in January and they'll be in the draw from March. So if you're moving money over from other savings, it's best to do it in the last week of the month, as that way you minimise the time the money's not earning interest and also not in a draw for Premium Bonds.

  The exception to this is if you reinvest your prizes – these bonds will be in the draw from the month after you win. So, let's say you won £25 in January and had reinvesting set up – the new £25 worth of bonds would be in February's draw.

  They continue to be eligible until you cash them in, which can be at any time, though it can take up to eight working days to get your cash.

intheblacknow

I am in the middle of a divorce. I put the maximum ( £50k) into premium bonds as my new flat purchase was taking forever. The first month I didn’t win anything but last month I won £25 and £500. I realise the odds against this are very high but it has massively helped my long term savings plans and I loved the excitement of logging on to see what so had won! 

Oasis1

Congatulations intheblacknow - great news! I'm hoping to have above average luck with my £40k too, but a likelihood of £25/month wlll do, beating current savings account interest rates by a good amount.

Murphybear

I must have above average luck.  In 2019 my PSB winnings averaged 3% and last year 2%.  I managed to save quite a lot of money during the lockdown and put it all in PSBs.
My current holding is £10k.
I look at the Prize Checker app at the beginning of each month.  It’s fun to see if I’ve won anything (sad really  ).

I have found that the time it takes to get the money back when cashing any in is 2-3 days, a lot quicker than it used to be.

in case anyone is unaware you used to wait 3 clear months before your newly bought bonds went into the draw so things have changed for the better in that respect.

Oasis1

First prize was £25. Statistics doing their thing! I've upped my bonds to £45k in hope of getting those higher prizes...

eskbanker

Oasis1 said:

First prize was £25. Statistics doing their thing! I've upped my bonds to £45k in hope of getting those higher prizes...

As long as it's hope rather than expectation, given that nearly 98% of the prizes are £25 ones....

dekdee

My take on premium bonds are if you put your money here rather than the lottery the money you save by not playing the national lottery can be considered as interest saved as you are still having your chance of hitting millionaire Row.
If you just play lotto then this can be £4 a week or if you play the all other games it can mount up to £50 a month as interest saved by having saved in bonds.