Premium Bond Winner ?

pandora205

2 x £25 here - fab. It goes into my holiday fund for spending

Oldbiggles

Daelim wrote: »

If I register now will they take the funds out of my bank account today? I read that they need to send out a form for me to sign etc...

Just want to keep the funds I'm using for bonds in my "high interest" savings account for as long as possible before moving to my bank account to transfer to NS&I!

I’m amazed to know someone has a “high Interest” account. I thought these things were non existent, especially if instant withdrawals are allowed.

3 x £25 for us this month (May).
Still only a 1.5% return over the last 18 months.

gkerr4

do people think these are 'more' attractive now than in previous months / years?

now the indicatvive 1.5% sounds good and there is always the chance of winning something bigger + they extend your cash ISA by a further £30k.

I've had £3,000 in for exactly a year - it's paid £125 which is 4.16% by my reckoning - which isn't bad at all in the current climate.

I've just had an email to say that my post office saver rate is coming to an end - it's currently 3.16% and they have given me access to a "special offer" 1.4% (which just takes the pi$$ really as they give 1.5% on their online saver) - i have about £12k there and given that i'm a 40% taxpayer, so have a liability on the interest, i'm thinking of putting the lot on premium bonds - anyone think I am mad doing this?

innovate

The average remains at around 1.5% AER.

There are a set number of high value winners every month. http://www.nsandi.com/savings-current-interest-rates-premium-bonds-prize-draw-details

For these high value "prizes" to be paid out, and for the average to remain 1.5%, an awful lot of people will have to go with a lot less than 1.5% for a very long time. Of course, you could be one of the high value winners....

I know people who have had £30K in PBs for years and have barely made 0.68% AER on average (this included the years when you could get 7% AER in an ISA). I don't know any high value winner....

As long as you can live with potentially "winning" nothing, PBs are fine. If you want to be certain of a return, choose something else. Investments (funds, shares in S&S ISAs, SIPPs, etc) seem to be a more solid approach though not without risks, either.

I do have £30K in PBs myself, btw. But only because I can live with the - literally - guaranteed loss (due to inflation) unless I win big. I have other savings/investments elsewhere but fancy the gamble.

atush

Oldbiggles wrote: »

I’m amazed to know someone has a “high Interest” account. I thought these things were non existent, especially if instant withdrawals are allowed.

3 x £25 for us this month (May).
Still only a 1.5% return over the last 18 months.

As a HRTaxpayer, they make more sense to you than to others (as prizes are tax free)

gkerr4

innovate wrote: »

The average remains at around 1.5% AER.

There are a set number of high value winners every month. http://www.nsandi.com/savings-current-interest-rates-premium-bonds-prize-draw-details

For these high value "prizes" to be paid out, and for the average to remain 1.5%, an awful lot of people will have to go with a lot less than 1.5% for a very long time. Of course, you could be one of the high value winners....

I know people who have had £30K in PBs for years and have barely made 0.68% AER on average (this included the years when you could get 7% AER in an ISA). I don't know any high value winner....

As long as you can live with potentially "winning" nothing, PBs are fine. If you want to be certain of a return, choose something else. Investments (funds, shares in S&S ISAs, SIPPs, etc) seem to be a more solid approach though not without risks, either.

I do have £30K in PBs myself, btw. But only because I can live with the - literally - guaranteed loss (due to inflation) unless I win big. I have other savings/investments elsewhere but fancy the gamble.

this is an interesting post - thank you,

see, when ISA rates were 7% i couldn't see the attraction - but now, when we are scratching about for 1.8% or the like, suddenly, the potential 1.5% average and potential 'hi-value' prizes (all tax free) look more enticing? do you not think?

I have other investments, approx. 25% in equities and i'm currently raising this to 30%. My wife and i are "fully-ISA'd" and have been for a few years - I'm even using the full £20k in a 1-2-3 current account - but then, where do you put money? you put it in a crappy savings account and then pay tax on the 2-tenths of f@ck all you get in the first place...

anyway.....

Oldbiggles

innovate wrote: »

The average remains at around 1.5% AER.

There are a set number of high value winners every month. http://www.nsandi.com/savings-current-interest-rates-premium-bonds-prize-draw-details



As long as you can live with potentially "winning" nothing, PBs are fine. If you want to be certain of a return, choose something else. Investments (funds, shares in S&S ISAs, SIPPs, etc) seem to be a more solid approach though not without risks, either.

I do have £30K in PBs myself, btw. But only because I can live with the - literally - guaranteed loss (due to inflation) unless I win big. I have other savings/investments elsewhere but fancy the gamble.

Personally I don’t rate funds which are run by financial managers. I prefer buying shares in good Companies in share certificate form and keep for the long term like Warren Buffet. The problem with Unit trusts, Financial trusts, Stocks and share ISA’s etc is that they have to be run by Fund Managers and the fees they charge for this service usually eat up any tax savings you might be entitled to and if the fund under performs their fees are taken from your capital.

innovate

You can of course get funds with high management charges. But there are hundreds if not thousands of funds with every reasonable charges, which most certainly do not eat up any tax advantages you might get.

Investing in funds generally reduces your risk, very significantly so, compared with investing in individual shares. Even if you have Warren-Buffet-like resources and can spread your investment across many shares.

But anyway, this is the Premium Bond Winner thread - - if you want to discuss investing in shares vs investing in funds, or a combination thereof, this is best done in a different thread.

genny

If I buy a decent chunk of PBs for my young child, when they "win" are the prizes sent in the child's name (or direct to a child's savings account if you've set it up that way) or are they sent/in the parent's name until the child is 18?

atush

Cheque came in my son 's name, but he was 16 when he won (not sure if they knew that though).

as long as there is a savings account in your child's name they can be easily deposited.