Premium bonds - when in month to invest?

EalingSaver

If I'm going to put some money into premium bonds, want to check timing on investment. My understanding is that they have to be held for a 'full calendar month' before they are entered into the draw. I believe the draw is on the first of every month. Therefore I assume that money should be put in as close to end of month as possible, and any future redemption should be done from the 2nd of any month.

Is this others understanding?

Also, I see from the NS&I website that it takes 7 working days to clear payments. Any experience of whether they are deemed 'owned' and therefore eligible to be entered prior to clearance? (If not, looks like I missed the boat for an end Feb purchase...).

Please don't use this as a thread on the merits of premium bonds!!! I'm aware of the arguements....

kingmonkey

Surely the best time to save would be now. No point waiting to time it.

But from what you say:
Save 7 working days before 31 Jan
Hold for full month of Feb
Entered into March draw.

lr1277

You can purchase upto and including the last day of the month. Depends on your method of payment.
Also just to clarify, if you bought the bonds on 29th Feb, they would be included from the 1st April draw.

I used to buy my bonds online, but experienced problems. However if you use this method and you are confident/keen, then you can buy upto or on 29/02. But you take the risk with the internet and problems with purchases not being registered, or your bank not authorising the transaction. If the transaction is not authorised, then by the time the bank tells you, it has moved onto the next month and you have missed the window for buying in the previous month.

I now buy at the Post Office. As long as the form is stamped on the last day of the month, or before, then the bonds will be entered in the draw two calendar months afterwards. The advantage with the Post Office is that if you pay by cheque, it takes 3-4 days to clear so you make interest on the money for that bit longer. You can also pay by debit card and or cash, if you wish.
Hope that makes sense.

lr1277

And future redemptions should be on the 2 or 3rd working day of the month. If the NS&I website has been updated for that month, then I would say it is fairly safe to take the money out.

EalingSaver

lr1277 wrote: »

You can purchase upto and including the last day of the month. Depends on your method of payment...I now buy at the Post Office. As long as the form is stamped on the last day of the month, or before, then the bonds will be entered in the draw two calendar months afterwards....

Many thanks. Very helpful. I'm so used to do everything on line that I didn't think of this option. Makes the most sense. I remember having difficulties on-line when buying Index Linked certificates a year ago - took a lot longer to get debited from my account than I expected.

Thanks.