Chip prize draw account

Deru

masonic said:

Deru said:

masonic said:

Why not leave £0 in the Prize Saver account? That would likely give you the best outcome.

As that’s the minimum.  You have to be in it to win it, as they say.  

Well I'm winning by being out of it. About 6% AER.

Where from please?

I'm also getting 7% from FD, 6.25% from Lloyds Regular savers.  

PB % varies wildly since the prize varie and my balance is £30K+ so in most cases, tiny % but I have had a £1000+ win in one month and £500+ in another and will still continue to add to it hoping for a bigger win.

masonic

Deru said:

masonic said:

Deru said:

masonic said:

Why not leave £0 in the Prize Saver account? That would likely give you the best outcome.

As that’s the minimum.  You have to be in it to win it, as they say.  

Well I'm winning by being out of it. About 6% AER.

Where from please?

I'm also getting 7% from FD, 6.25% from Lloyds Regular savers.  

PB % varies wildly since the prize vary and my balance is £30K+ so in most cases, tiny % but I have a £1000+ win in one month and will still continue to add to it hoping for a bigger win.

The savings option that would be best for you depends on your own circumstances, whether you'd pay tax on extra interest etc, but the payout rate on PB far exceeds the PrizeSaver, so even adding to your PB holding would be an improvement. Otherwise, consider other RS options if you could be bothered to open them (there are a few others paying 6-8%), or if you can make it part of a larger sum to be locked away consider fixing for a year.

Deru

I've had 4 regular savers running. 2 still running since two of them matured.  The money that got freed up, I chucked into PBs and other random savings accounts for now.  

Thanks for the info. I have now found the 8% RS with Nationwide will open that.

I moved out most of the PriveDraw balance from Chip and just left it in their savings account for now. That's 4.84% which isn't bad.

I don't really like locking away unless the AER is big enough to justify it. 

lohr500

I put £4k into the Chip prize draw a/c back in April just to try my luck.
So I have been eligible for two full months worth of draw entries based on the £4k saved and a partial month.

Total winnings = zero.

Not prepared to see what happens for another month so I've moved the cash elsewhere.

PixelPound

lohr500 said:

I put £4k into the Chip prize draw a/c back in April just to try my luck.
So I have been eligible for two full months worth of draw entries based on the £4k saved and a partial month.

Total winnings = zero.

Not prepared to see what happens for another month so I've moved the cash elsewhere.

There was a thread comparing the odds, and because PB is every pound it works out better. IIRC the prize draw account was trying to say it was better odds per entry, but that is misleading as their entry is every £10.

slinger2

The most obvious difference between PBs and the Chip prize draw is one of scale. The Chip product is paying out £87,500 in July, PBs are paying out £450,000,000: 5,000 times are much. Of course that doesn't necessarily affect your chances of winning.

However there's also a major difference in the payouts. 80% of the prize money for PBs go on small prizes (£25, £50 and £100), while Chip pays out 97% of its money into just 2 prizes (£75k and £10k) and just 3% goes on the £10 prizes. What that tells you is that you're more likely to win the £75k and £10k prizes with Chip that similar prizes with PBs, but you're much less likely to win significant numbers of small prizes with Chip, even with a lot of money "invested".

Personally I wouldn't touch the Chip product with a barge pole.

twadds123

Just thought i'd bump this up.

Anyone had any luck with the Chip prize draw account?

With falling interest rates and lower Premium Bonds returns wondering how people think this stacks up now?

flaneurs_lobster

slinger2 said:

Personally I wouldn't touch the Chip product with a barge pole.

twadds123 said:

Anyone had any luck with the Chip prize draw account?

With falling interest rates and lower Premium Bonds returns wondering how people think this stacks up now?

I've just prodded my £100 in the Prize Draw account with my barge pole thus ensuring that I'll win in this month's draw (unlike the preceding 26).

It's a punt, still doesn't represent the same "value" as PBs.

cheekybuoy

I’ve maxed out on my ISA, premium bonds and anything else tax free. I’m not prepared to submit a tax return for earning over £10k in interest so I put all my spare in the Chip prize draw. I’ve had a lot of wins so far - nowhere near what I would earn in interest but it suits me fine. Currently got just under £20k in there but had £50k before. 

masonic

cheekybuoy said:

I’ve maxed out on my ISA, premium bonds and anything else tax free. I’m not prepared to submit a tax return for earning over £10k in interest so I put all my spare in the Chip prize draw. I’ve had a lot of wins so far - nowhere near what I would earn in interest but it suits me fine. Currently got just under £20k in there but had £50k before. 

If you are accumulating a lot of Prizes, then be aware that if Chip Financial were to go under, these are not covered by the FSCS. According to the T&C: "A Prize is not cash, is not the same as money you have deposited and is not covered by the Financial Services Compensation Scheme (FSCS). A Prize is money the Promoter promises to pay you when you withdraw from your account all of the cash deposited in your account over time before and after your Win."

It would therefore be prudent to periodically empty the account to crystallise the unpaid prizes.

Incidentally, under that definition, it also raises the question of whether or not the money promised to be paid upon withdrawal is taxable income. Perhaps it would be treated as a one-off incentive or gambling winnings, but it is capable of recurring and could represent pure income profit disconnected from the actual Prize. Chip helpfully state they do not give tax advice and are silent on this. If this rather strange arrangement to win "promises to pay you when you withdraw [everything]" constitutes gambling winnings, which you'd think it would, then it ought to be clear cut and would be good for marketing for them to say so. And should gambling be taxed in the future while these Prizes remain unpaid, would they be treated as arising when paid or when won?