Buy Premium Bonds with a 0% Credit Card?

Twointhebush

Is it a crazy idea to buy Premium Bonds with a 0% credit card? A friend did this, bought £9000 of PBs (I think this was the £?) and was disciplined enough to cash the PBs in time to pay off the debt. Though I never found out if he actually won anything? 28 months of 0% from the Post Office might be worth a go?

[Deleted User]

Can you buy PBs with a credit card? The NS&I site suggests you can't.

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

How you can pay:
• online or by phone using your UK debit card
• by post using a personal cheque (payable to NS&I) drawn on your UK bank or building
society account, or a banker’s draft or building society branch cheque
• switching money from another NS&I account – visit nsandi.com/switching or call us
• by electronic transfer from your UK bank or building society account.

Nasqueron

If he got a 0% money transfer card he could but as the fee is usually around 2-3% he would have to have won something like £180-270 over that period to just break even.



With a money transfer card and something like a high interest saver it could work but it's not without risk and good rates are few and far between

foxy-stoat

He would need to win the smallest prize at least 10 times to break even and make the monthly repayments to the credit card every month and never miss a payment.

I have over £25k invested in PB's and in the last 3 years have won an average of 12 times a year the smallest prize.

It would make more sense to invest £250 a month in PB's and not take out a money transfer card.

nick74

I have done this in the past, but back then the notional rate of interest on Premium Bonds was higher so winning prizes was more frequent on a given amount invested.

One method is to use a 0% purchases card. You would put all of your day to day expenditure on the 0% purchase card, then at the end of the month buy an equivalent amount of premium using the money you would otherwise have spent on your normal expenses.

It does take careful monitoring though, and you need to have the self discipline to make sure that the amount you leave outstanding on the card never exceeds the amount have invested in Premium Bonds.