Premium Bond Winner ?

strawb_shortcake

eskbanker wrote: »

You seem to be using 'I' and 'we' interchangeably - do you have a £50K holding as an individual or £100K as a couple?
It's all in my name but in theory it is part of mine and my Husband's savings

Typical annual returns on PBs with average luck, from a maximum holding over several years, are likely to be in 1.25% territory.

You can get over 2% with 3-year fixed-term savings accounts, although your tax situation may affect the comparison - are you basic or higher rate taxpayers and do you have other savings that generate interest that uses up some or all of your personal savings allowance?

BR for myself but that may change with my next promotion, we are not expecting other savings to use up personal allowance

My money would be on the last of those

We have the money due to a critical illness payout, my Husband has been unwell and his brain isn't as sharp as it was but it should get better. He couldn't think straight and asked to put the money in PB's, as it was due to his illness we had the money I needed to let him have the input on it. We are currently getting 1.4% on the other half but we are dipping into that to pay 10% off the mortgage for the remaining term.

Ultimately we need £50k to pay off the mortgage at the end of our current term, and that'll be in the PB's when we need it. Any winnings we get are going into the higher interest account.
If after a year we are under the 1.4% from PB's we'll move it elsewhere. If we decide not to pay off the mortgage we can then look at more longer term investment options.

snowqueen555

arwain wrote: »

Won £1100, four £25 prizes and one £1000 prize, that's the most I have ever won with them. I once won £500 many many years ago when the payouts were much higher than they are today. I have the max holding but have been thinking of taking the money out and look for better returns.

Blimey, the odds of winning £1000 in a draw is 38 million to 1.

eskbanker

snowqueen555 wrote: »

arwain wrote: »

Won £1100, four £25 prizes and one £1000 prize, that's the most I have ever won with them. I once won £500 many many years ago when the payouts were much higher than they are today. I have the max holding but have been thinking of taking the money out and look for better returns.

Blimey, the odds of winning £1000 in a draw is 38 million to 1.

Not for someone with a £50K maximum holding, for whom it's 1 in 769....

redpete

annabanana82 wrote: »

If after a year we are under the 1.4% from PB's we'll move it elsewhere.

Why? The winnings you get in the next 12 months has no influence on the winnings you might win in the following 12 months.

The odds are known and always the same.

inflationbuster

Won £50 Oct on £50K yielding 0.80% (£400)

Previous wins
19/20: May £25, Jun £100, Jul £100, Aug £25, Sep £100,
18/19: 1.9% - May £50, Jun £75, Jul £75, Aug £200, Sep £25, Oct £150, Nov £75, Dec £0, Jan £50, Feb £50, Mar £75, Apr £50
17/18: 0.9% - Nov £25, Dec £75, Jan £25, Feb £100, Mar £25, Apr £125

MDMD

I’ve had £25 for two months in a row now on £40k. I’d get £49.67 taxable if I’d put it in Marcus but hoping for a few double “wins” to even things up a bit.

snowqueen555

eskbanker wrote: »

Not for someone with a £50K maximum holding, for whom it's 1 in 769....

Which is bad, on overage you'd have to invest 769 months on average to hit that prize. Of course you're going to probably win the smaller prices though.

eskbanker

snowqueen555 wrote: »

Which is bad, on overage you'd have to invest 769 months on average to hit that prize.

Yes, I wasn't saying that 1 in 769 (just over 64 years) is good, but was just highlighting that it's better than the 1 in 38 million that you'd quoted previously!

snowqueen555 wrote: »

Of course you're going to probably win the smaller prices though.

Naturally the odds massively favour numerous small wins before £1,000 ones, given there are about 1,750 smaller prizes for each £1,000 one....

polymaff

snowqueen555 wrote: »

... to invest ... Of course you're going to probably win the smaller prices though.

Which is how investors should regard Premium Bonds. Reasonably predictable returns on £50k via the 90% of the prize fund allocated to low-value wins - and all tax-free.


The other 10% of the prize fund should be regarded as being in "die before you win" territory - strictly for punters rather than investors...:)

taylornj

From two wins of £25 last month to zero wins this month of November, £0 on £50k holding.