Premium Bond Winner ?

adatherton

The fund pays out 1.4%, in other words, about the same as a term savings account (which is what it is). The more you hold, the nearer your payout will come to the statistical mean.

Holding a few is fine, for the fun element, like buying lottery tickets. But if you hold the max, you will get almost exactly 1.4%. They are a poor investment. Like all investments, it depends if you want zero risk, but even the special deal bank accounts pay nearly double this.

bowlhead99

adatherton wrote: »

The fund pays out 1.4%, in other words, about the same as a term savings account (which is what it is).

Holding a few is fine, for the fun element, like buying lottery tickets. But if you hold the max, you will get almost exactly 1.4%.

Not really. To actually get the 'almost exactly 1.4%' with only average luck, you would have to hold on long enough to get all the different prize types, taking the average amount of time to get there. And as a 50,000 holding will only get you on average 2 prizes a month, and there is only a 1 in 1.5 million chance of a prize being the top prize, it's much more likely that most people holding the max will see less than the average return, while a relatively smaller number will see more.

They are a poor investment.

You mentioned it pays close to a savings account. Yet it is tax free. So for someone earning more than the personal savings allowance who has to pay tax on their savings interest, and particularly someone with a high marginal rate of tax such as 40%, 45% or 60%, they are quite useful. A typical win rate of about 2 x £25 prizes a month for a 50k holding is £600 a year or 1.2%, while a bank account paying anything less than 2% gross is only worth 1.2% to a 40% taxpayer who pays tax on their interest.

Like all investments, it depends if you want zero risk, but even the special deal bank accounts pay nearly double this.

The special deal bank accounts don't pay double that on fifty thousand pounds.

You would need a large number of Special Deals to cover the 'hold the max' amount you were referring to earlier. You would run out of capacity in all the best deals relatively quickly, so would not be at 2.5%+ (gross) overall. You could do a term deposit of several years duration to improve the return on cash savings but that is no good when interest rates threaten to rise; PBs can be withdrawn immediately losing less than a month's interest.

Regardless - this thread primarily exists for premium bond winners to post their winnings. I got my 2 minimum prizes this month - an improvement on 1 in Apr; not as good as 5 in Mar; same as 2 in Feb; did not play in Jan.

JIL

I have £50,000
Winnings
Jan £100 (4 ×£25)
Feb £25
March £50 (2 × £25
April £25
May £0

tappet_rattle

I bought £50k end of Jan first draw in March i won £25 April was 2 x £25 this month i got 1 × £500 and 2 × £25. Happy so far.

lr1277

lr1277 wrote: »

On a 50k holding bought in January:
Total won:
Mar '19: £175
Apr '19: £25

Further win of £50 this month.

cattie

Total holding circa £23,500. I got 2 more wins @ £25 this month. The only month I haven't been lucky so far this year is April.

fly-catchers

First ever win of £25 on my £3000 holding! Held Bonds for 61 years till this win. But did only have £2 worth till January last year!

Novice_investor101

Won my first prize of £25 last month & then 2x £25 this month!
Total holding £7400, & I move whatever is left in my bank the day before payday in there each month.

John_the_Boy

In shock this month!

Normally win between £25 to £100 per month with my £50K worth of bonds, this month I won £550, one bond won £500 and two won £25

Lets hope its a sign of things to come :beer:

WorldTraveller_2

I still seem to be beating the odds - 3 x £25 this month on £25k. Winnings so far this year (holding of £17k until April):
Jan - £525
Feb - £25
March - £25
April - £100
May - £75