Premium Bond Winner ?

Zuzi

I have 35K in PBs, started in February, and this month as well as last I won £25. Better than nothing, and considering this is tax free I think I will stay for a while or even increase the amount of bonds I have.

I've been quite ignorant and only yesterday - thanks to a few threads here - realised that a) I am a higher rate taxpayer b) I will very likely go over my tax-free savings interest allowance soon, so I will need to reconsider how and where I save my money. I originally wanted to try PBs for about 6 months and then move the money elsewhere, but it looks like I might stay longer.

@davidr1964 Congratulations on your win, that's amazing! 

eskbanker

Zuzi said:

I have 35K in PBs, started in February, and this month as well as last I won £25. Better than nothing, and considering this is tax free I think I will stay for a while or even increase the amount of bonds I have.

I've been quite ignorant and only yesterday - thanks to a few threads here - realised that a) I am a higher rate taxpayer b) I will very likely go over my tax-free savings interest allowance soon, so I will need to reconsider how and where I save my money. I originally wanted to try PBs for about 6 months and then move the money elsewhere, but it looks like I might stay longer.

While it's true that higher rate taxpayers (who've used their PSA) benefit more than others from the tax-free status of PB winnings, just make sure that you measure the overall net return on whichever options you consider, rather than simply trying to avoid tax as a point of principle - even being taxed at 40% on all of the interest from an easy access Chase savings account brings the overall return into the same territory as the average PB rate, and rates may diverge after today's base rate increase....

LeafGreen

I wonder if the prize fund will increase soon, still no movement after several base rate rises :-(

eskbanker

grahamgoo said:

I wonder if the prize fund will increase soon, still no movement after several base rate rises :-(

The PB prize rate isn't correlated with the BoE base rate and is set according to NS&I's desire (or lack thereof) to attract additional funds, based on their net financing target:

https://nsandi-corporate.com/news-research/news/nsi-provisional-q3-2021-22-results-and-2022-23-net-financing-target

jimexbox

Zuzi said:

I have 35K in PBs, started in February, and this month as well as last I won £25. Better than nothing, and considering this is tax free I think I will stay for a while or even increase the amount of bonds I have.

I've been quite ignorant and only yesterday - thanks to a few threads here - realised that a) I am a higher rate taxpayer b) I will very likely go over my tax-free savings interest allowance soon, so I will need to reconsider how and where I save my money. I originally wanted to try PBs for about 6 months and then move the money elsewhere, but it looks like I might stay longer.

@davidr1964 Congratulations on your win, that's amazing! 

If you have a partner, you could always use their PSA. Obviously the saving would have to be in their name. 

Ducktard

I was thinking of having a punt on PB’s. Could the wife and I each open an account separately and invest £50K each?

cymruchris

Ducktard said:

I was thinking of having a punt on PB’s. Could the wife and I each open an account separately and invest £50K each?

Yes.... 

annie42

I invested 47K last December and a further 3K last month. I’ve won £175 this month, £175 last month. £50 in March, £25 in January and £25 in February. It seems I should consider myself lucky with a total of £450 in a five month period. 

Ducktard

The new Chase saver is 1.5% AER and paid monthly. If I invest £226K does that mean I will earn £280/month? 

westv

eskbanker said:

grahamgoo said:

I wonder if the prize fund will increase soon, still no movement after several base rate rises :-(

The PB prize rate isn't correlated with the BoE base rate and is set according to NS&I's desire (or lack thereof) to attract additional funds, based on their net financing target:

https://nsandi-corporate.com/news-research/news/nsi-provisional-q3-2021-22-results-and-2022-23-net-financing-target

Although they did seem to be keen to cut the prize rate every time the BOE cut rates.