Premium Bond Winner ?

Sarahspangles

gussie5555 said:

You'd have to be winning an average of £180 per month to match what a 5.5% 1 year fixed account would pay out at the end of the year assuming paying 20% tax on the interest - many folks just leave 50k sitting there in the faint hope - it's madness now to do this.

Ok if you tell yourself you can get your holding out at any time - but how many folks actually do this?

For higher rate taxpayers who’ve filled their ISAs and will exceed the £500 personal savings allowance from other savings, it’s not so insane.

Swipe

annabanana82 said:

PB's managed to trace my Uncle when his 1950 something bond won. After the letter telling him he'd won, he was a little disappointed to find out it was just £25 win

I imagine that was prior to the last 18 months though before their CS went completely downhill.

Swipe

Sarahspangles said:

gussie5555 said:

You'd have to be winning an average of £180 per month to match what a 5.5% 1 year fixed account would pay out at the end of the year assuming paying 20% tax on the interest - many folks just leave 50k sitting there in the faint hope - it's madness now to do this.

Ok if you tell yourself you can get your holding out at any time - but how many folks actually do this?

For higher rate taxpayers who’ve filled their ISAs and will exceed the £500 personal savings allowance from other savings, it’s not so insane.

Yes, right now, that's the only case that's justified (assuming they've also maxed out their pension contributions) but I imagine that's a very small percentage of people

jaceyboy

My wife has £50k and I have £41k in Premium Bonds, we win normally around £100-150 each per month, would I be better off putting £91k into something else?

wowow

arthurdick said:

Oh well, just checked from the million prizes down to the last £1000 prizes,(around 14000 rows down) nothing for me there.  I will not check my account to see if I have won any of the lower prizes, I like to wait and see if I get an email, like I have the last 3 draws, saying I have won a prize, it gives me that little bit of fun and I would be happy with any win, well, apart from just £25, but even that is better then £0. 

If you click on 'Sort by' you can change the list to 'Area' its saves going through the whole list.

Sarahspangles

Swipe said:

Sarahspangles said:

gussie5555 said:

You'd have to be winning an average of £180 per month to match what a 5.5% 1 year fixed account would pay out at the end of the year assuming paying 20% tax on the interest - many folks just leave 50k sitting there in the faint hope - it's madness now to do this.

Ok if you tell yourself you can get your holding out at any time - but how many folks actually do this?

For higher rate taxpayers who’ve filled their ISAs and will exceed the £500 personal savings allowance from other savings, it’s not so insane.

Yes, right now, that's the only case that's justified (assuming they've also maxed out their pension contributions) but I imagine that's a very small percentage of people

I’m not sure it’s that small a group now - if you’d told me a couple of years ago I’d ever need an ISA again I’d have been surprised. Salaries are rising, while the personal allowance isn’t, interest rates are increasing but the personal savings allowance isn’t, ISAs weren’t attractive until we were paying tax on interest, but we only get £20k a year ISA allowance.  An inheritance or a pension lump sum easily tips you into needing PBs in the mix.

cymruchris

jaceyboy said:

My wife has £50k and I have £41k in Premium Bonds, we win normally around £100-150 each per month, would I be better off putting £91k into something else?

This kind of question comes up a lot - and the answer varies depends on what you're looking for.

Any regular savings vehicle will give you a certain percentage return - so easy access accounts can now be had for over 3.5% - and fixed terms even higher. For these  you'll get exactly what it says on the tin back into your pocket.

In simple terms £100k for example at 3.5% would give you a guaranteed £3.5k return if left for a year.

If two people had £50k each in their premium bonds - what would they get back? Who knows! You might get below average luck and get back £50 for the year. You might get above average luck and get back £5k for the year. You might be incredibly lucky and win a big, big prize.

In savings accounts you're saving with a fixed return (subject to rate changes).

In premium bonds your money is safe, no guaranteed returns, but the (very small) chance to win big. It's a lottery where you get your money back when you need it.

So - are you needing a savings account with a fixed return - or having the chance to win big without losing your initial stake? (Inflation aside).

Swipe

jaceyboy said:

My wife has £50k and I have £41k in Premium Bonds, we win normally around £100-150 each per month, would I be better off putting £91k into something else?

This video pretty much sums Premium Bonds up:

https://www.youtube.com/watch?v=q1EcrlFiwP4&pp=ygUZamFtZXMgc2hhY2sgcHJlbWl1bSBib25kcw%3D%3D

gussie5555

Swipe said:

jaceyboy said:

My wife has £50k and I have £41k in Premium Bonds, we win normally around £100-150 each per month, would I be better off putting £91k into something else?

This video pretty much sums Premium Bonds up:

https://www.youtube.com/watch?v=q1EcrlFiwP4&pp=ygUZamFtZXMgc2hhY2sgcHJlbWl1bSBib25kcw%3D%3D

Excellent Video - When Interest Rates were 1% and below Premium bonds made sense - but not anymore. I've only held a max holding for around three years and for the first two years I came out on top but the last six months no way could I match what I could get from normal savings accounts - there really should be a stampede to get out of Premium Bonds now - but as the guy said our brains just don't let us see the truth! The only reason I'm waiting one more month is that I can see the BOE increasing rates on June 22nd again and 1 year fixed bonds paying over 5.5% will become available and I know where my 50k should be sitting then !

arthurdick

wowow said:

arthurdick said:

Oh well, just checked from the million prizes down to the last £1000 prizes,(around 14000 rows down) nothing for me there.  I will not check my account to see if I have won any of the lower prizes, I like to wait and see if I get an email, like I have the last 3 draws, saying I have won a prize, it gives me that little bit of fun and I would be happy with any win, well, apart from just £25, but even that is better then £0. 

If you click on 'Sort by' you can change the list to 'Area' its saves going through the whole list.

Hi, I know you are right but I wait all month for the little bit of fun, I enjoy a nice couple of hours with a couple of cuppa's to check them.  If I sorted them by area only, my check would only last around 10 mins and the fun would be over too quick and then  the missus would expect me  to do other stuff, but while she thinks  that I am checking for a large win and her knowing that she would get some spending money, I get to have 2 hours of peace and quiet.  to me, that is a win.