Premium bonds advice

bogbrsh250

I'm looking to start buying up premium bonds as a way of secured saving towards buying a house. I know I would probably get more from saving in a bank but if I can get to it I will spend it. What's everyone's advice and how much have people won off them.

Archi_Bald

There's an MSE article, and you can also search the forum for the PB thread.

redpete

bogbrsh250 wrote: »

What's everyone's advice

If you really can't leave the money in a savings account then it's a reasonable idea - obviously no risk of losing your deposit.

and how much have people won off them.

Why would the reported winnings of people who reply here make any difference to your decision? The chances of winning different prizes are publicly available and indeed there is a calculator on MSE here - what other people here have won will make no difference to your chances of winning anything.

teddysmum

bogbrsh250 wrote: »

I'm looking to start buying up premium bonds as a way of secured saving towards buying a house. I know I would probably get more from saving in a bank but if I can get to it I will spend it. What's everyone's advice and how much have people won off them.

Premium bonds would not prevent you from spending your money as withdrawal is quite easy. You are not committed to leaving your money for a set time, as with a savings bond.

macman

Put it in a savings account where there is limited access, i.e. where penalties apply for early withdrawal.
PB's can be cashed in at any time without penalty, so will hardly be secure if you lack discipline.
Fixed rate ISA or Santander 123 account, it all depends on how much and over what term you intend to save? There is no perfect 'one product fits all' choice.

ColdIron

For some higher rate tax payers there is just about a case for them in limited circumstances, for most basic rate tax payers they are usually a poor choice - unless you get lucky which you probably won't

Totton

Interest rates are by and large very poor, imho now is a good time to take a punt on premium bonds with some of your home deposit. If you strike it lucky then what a great help that would be, in the meantime you aren't losing much interest :-) Bear in mind though that the bonds aren't immediately entered into the prize draw.

ColdIron

I don't know what sums you are talking about but you could bung in some numbers into the PB calculator and see what you make of them

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