to max or not?

bucksman

Currently hold £40k in PB. Returns in the last 12 months have been around 2.5% equiv (tax-free, I realise). Maxed out ISA for the year, what are your feelings on adding more to PB to the max investment - those with the maximum have a greater chance of a win? How best to roll the dice!?

Woodstok2000

It's not long until you can put another £20k in an isa...I'd wait until April and do that.

In the mean time, as it's a short period of time and the interest earned elsewhere would be low, I'd be tempted to pop it into the pb and hope for a big win!

subjecttocontract

Average returns are exactly that, you might get very little or you might get a lot. Many of us see the tax free element as worthwhile and because we are 40% taxpayers. It's really down to circumstances and choice......oh and a bit of luck!

bucksman

https://forums.moneysavingexpert.com/discussion/comment/81880967#Comment_81880967

Oh ..we all hope for that big win! Thank you for your thoughts here

InvesterJones

https://forums.moneysavingexpert.com/discussion/6654989/to-max-or-not

Given the month+ waiting period between topping up PB and the extra being used for a draw, I wouldn't bother if you're going to take it out again in April for an ISA. Stick it in a high interest savings account instead.

Ayr_Rage

The chance of any single bond winning is the same if you hold the minimum or the maximum.

The overall odds of winning a prize increases with the more bonds held.

If you've got £10,000 spare and can also fund all your intended investments next year as well then go for it especially if you pay tax at a greater rate than 20%

aroominyork

https://forums.moneysavingexpert.com/discussion/comment/81881183#Comment_81881183

But the OP could add it to PBs on 28 Feb, withdraw it on 1 April and still be in two draws.

TheMilkmansDad

https://forums.moneysavingexpert.com/discussion/comment/81881307#Comment_81881307

how do you figure? 28th Feb - 1st Draw date in April?

IOWJJBTM2025

https://forums.moneysavingexpert.com/discussion/comment/81881320#Comment_81881320

My understanding is that premium bonds are not entered into the first draw until they have been held for a full calendar month. If I buy on 28th Feb they would not be included in the first prize draw until 1st April. Maybe sell them on 2nd April until after the draw has been done. The money takes 1 to 3 working days to get to your account when selling Premium Bonds.