Premium Bonds Winners?

Jamesgdever

I have been looking into getting premium bonds 1) as a way to save and 2) as a way to start making some money (hopefully) from winning.

However, Is this one of those schemes were only the rich get richer?

Has anyone got any bonds? Ever won? got any pros and cons before I start investing?

marlot

Pros:
There is no tax to pay on any winnings. This makes them OK as an investment for higher rate taxpayers. Less good for basic rate and non-taxpayers.



Every bond has an equal chance of winning



Cons:
The effective interest rate is pretty low.

Albermarle

The average payout rate of 1.4% is similar to an easy access savings account .
However the average is skewed by the big prizes , so most people will get around 1.2% and a very lucky few will get a big prize ( and it is afew )
Tax free and 100% original investment returned on demand , 100% guaranteed by HM Govt .
https://www.moneysavingexpert.com/savings/premium-bonds/

strawb_shortcake

I've had 300 for around 10 years, over this time I have won £75. I am about to up this to 50,000 until we decide what to do with it. We will have savings in higher interest accounts too.
My Mum has around 25000 and has won every month this year. Think it's just down to luck

davidwatts

Assuming the OP isn't taking the proverbial ("has anyone got any bonds? Ever won?") they might want to have a look at this thread, where people update each month with their holding and how they've done.

https://forums.moneysavingexpert.com/discussion/81778/premium-bond-winner

castle96

You can get 1.5% in most places. 1.4% is ave. win with PB. Then again... maybe 000s or 0000s who knows? Do you do the lottery? £1 paid, £1 lost (or maybe won), who knows. If you have exhausted other a/cs, or got 'too' much/spare money.. worth a punt. No wins after |X mths, you pull out... then 'maybe' you would have won. Who knows. At least you never lose your money, and at 1-2% elsewhere... just bought the max. myself

Ken68

Another £150 win with August draw...no sign of the cheques yet, normally here by the 10th.
Going well....£475 on £50k in six months.

arwain

Jamesgdever wrote: »

Has anyone got any bonds? Ever won? got any pros and cons before I start investing?

There is a thread on this forum of someone who won a million pounds on them, but the chances of it happening are absolutely tiny.

I have the max holding and once went 4 months in a row without winning a penny then on the fifth month I had 6 winning bonds. Each one only £25 though unfortunately. The biggest win I ever had was £500 but that was about 30 years ago when they used to pay out a lot more (in percentage terms) than they do now.

There are several bank accounts and regular savers etc. that will give you a better return on your money, but of course you have no chance of getting a big win with them. Although as mentioned previously you have close to no chance of a big win the premium bonds either.

AnotherJoe

Jamesgdever wrote: »

I have been looking into getting premium bonds 1) as a way to save and 2) as a way to start making some money (hopefully) from winning.

However, Is this one of those schemes were only the rich get richer?

No, its a scheme where everyone* gradually loses money to inflation.


Has anyone got any bonds? Ever won? got any pros and cons before I start investing?

Yes some people have got bonds. Yes, some people have won. Its not investing.

Without further information on your overall financial position and your goals for this money (eg is it for 1 year? 10 years? retirement?) its impossible to list the pros and cons other than to say that, in general, its a savings scheme with low rates of return.




* excepting the miniscule percentage of high value winners.

chucknorris

Ken68 wrote: »

Another £150 win with August draw...no sign of the cheques yet, normally here by the 10th.
Going well....£475 on £50k in six months.

It is hardly doing well, it is below the rate of inflation so you have actually lost money, how is that doing well? If you had invested it in the ftse 100, you would have made about £1,100 (gross).

Ken68

Gave up shares a few years ago Chuck when I reached 80, but you are right am losing against inflation , though compared to my present savings rates not too bad. Some of my small fortune is in regular savings 2.5% or 3% and some at 5%. Most is in 5 year fixed rate bonds. Quickish access money is Premium Bonds and Marcus.