We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Buying premium bonds

Options
2»

Comments

  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
    edited 1 January 2017 at 3:40PM
    Options
    My interpretation is it's about the implied interest build up.

    Effectively, everybody's money is generating interest daily.
    The Treasury uses the interest to fund the prize pool, and pockets the rest.

    Everybody else's money has been tied up for a whole month, and then they are entitled to enter the draw on 1st February. If you come along and buy a premium bond on say 20th January, and you are entitled to a prize as well, it's just not fair. Also, I could buy £50k on 30th January, withdraw it on 2nd February, put it into an Income Bond account, then repeat for the next draw.
  • Jeems
    Jeems Posts: 202 Forumite
    First Anniversary First Post
    Options
    Forgot to mention this, it's because the bonds do not enter the draw till one calendar month has passed, so buying on 1st or 31st of Jan makes no difference the bonds do not become eligible till March.

    Many years ago it used to be three calendar months. fj

    So I've missed Feb's draw by 1 day. May as well wait until the end of the month then. :think:
  • polymaff
    polymaff Posts: 3,909 Forumite
    First Anniversary Name Dropper First Post
    Options
    polymaff wrote: »
    Drips or blocks - it is up to you - but buy them on the last day of the month.
    Forgot to mention this, it's because the bonds do not enter the draw till one calendar month has passed, so buying on 1st or 31st of Jan makes no difference the bonds do not become eligible till March.

    Exactly. Having used up all better harbours, I stashed cash in an NS+I Income Bond account through December and then did an internal transfer purchase with that cash - plus a direct Debit Card purchase using my just-paid pension - on the 31st.
  • EC12345
    EC12345 Posts: 481 Forumite
    First Anniversary Combo Breaker
    Options
    I've bought £400 worth just today. Hoping to buy more throughout the year.
    Mortgage Free
    Save £5,000 in 2020[CENTER
    :j
  • teddysmum
    teddysmum Posts: 9,479 Forumite
    First Anniversary Combo Breaker First Post
    Options
    Having a few £1 bonds from childhood, we bought £1000 worth between us as our first adult dabble and won £50 each in the first draw. This was when the minimum prize was £50.
  • Flobberchops
    Flobberchops Posts: 1,279 Forumite
    First Post Combo Breaker First Anniversary
    Options
    Makes no difference. The winning numbers are chosen at random

    True, but if the OP has the cash to hand, there's an opportunity cost associated with drip-feeding rather than having the maximum number of bonds being entered into the draw as soon as possible. You have to be in it to win it, as another poster noted.
    : )
  • Allotrope
    Allotrope Posts: 158 Forumite
    Options
    The January draw is 4th Jan so from my understanding you can buy anytime up to 3rd Jan to be in the Feb draw... i could be wrong but worth double checking
  • ColdIron
    ColdIron Posts: 9,237 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    You must have held your PBs for a full calender month before being eligible for the draw, so for February you must have bought them before January. If you bought them on the 3rd January you will have to wait until March
  • dktreesea
    dktreesea Posts: 5,736 Forumite
    Options
    TallGirl wrote: »
    I've just bought £50k worth in one go really easy signed up Boxing Day by the 28/12 I had my bonds ready for the February draw. No hassle no need to send any ID in.

    Wish that were me :)
  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
    Options
    TallGirl wrote: »
    No hassle no need to send any ID in.

    Which means no one will ask for ID when "somebody" tries to get money out.

    When it comes to my money, I would prefer a long and meticulous approach. Anything to avoid gone in 30 seconds. I LOVE the way they still use BACS, which takes three days.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 12 Election 2024: The MSE Leaders' Debate
  • 344.2K Banking & Borrowing
  • 250.4K Reduce Debt & Boost Income
  • 450.1K Spending & Discounts
  • 236.3K Work, Benefits & Business
  • 609.7K Mortgages, Homes & Bills
  • 173.6K Life & Family
  • 248.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards