Best time to buy and sell Premium Bonds.

Chomeur

From the Premium Bonds terms and conditions:

"12. A Bond will be eligible for all draws in and from the
second month after the month of purchase "

I also understand that draws take place on the first business day of each month.

So you should buy the bonds on the last business day of the month. And if you do that and you're thinking of Premium Bonds as an alternative to having cash in a savings account, you're effectively losing one month's interest because you won't be eligible for the draw in the following month?

And the best time to sell bonds would be immediately after the draw, so I suppose on the second business day of the month? Anyone know how long it takes for payment to be made if you sell them online?

YorkshireBoy

Chomeur wrote: »

Anyone know how long it takes for payment to be made if you sell them online?

You can work it out from condition 53 et seq in the T&Cs...

https://www.nsandi.com/files/published_files/asset/pdf/premium-bonds-brochure.pdf

Chomeur

YorkshireBoy wrote: »

You can work it out from condition 53 et seq in the T&Cs...

https://www.nsandi.com/files/published_files/asset/pdf/premium-bonds-brochure.pdf

Ah yes

57. For telephone or internet applications to cash in, we
will normally initiate the electronic transfer within three
banking days of receiving instructions.

So reasonably fast.

YorkshireBoy

Chomeur wrote: »

Ah yes

57. For telephone or internet applications to cash in, we
will normally initiate the electronic transfer within three
banking days of receiving instructions.

So reasonably fast.

3 banking days to initiate. Then 3 banking days to arrive. So could be a bit over a week overall when you factor in weekends (and Bank Holidays if applicable).

glider3560

Chomeur wrote: »

And the best time to sell bonds would be immediately after the draw, so I suppose on the second business day of the month? Anyone know how long it takes for payment to be made if you sell them online?

When you cash in the bonds, there is an option to cash in after the next draw takes place. That way, you can request at any point in the month and receieve your cash after the next draw.