Premium Bond Winner ?

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.

becky_rtw

PB are also almost instant access. A fixed term bond is not. They are treated as part of our cash holding in our household not a savings account. 

gussie5555

becky_rtw said:

PB are also almost instant access. A fixed term bond is not. They are treated as part of our cash holding in our household not a savings account. 

I quite agree but millions do not treat their Premium Bond holdings as cash - they leave them sitting there for years - it is those who should be forming a stampede to get out and make better use of their money. There also will be 4% easy access accounts available next month aswell - even if you pay 20% tax which most of us do - that would still give you a tax free 3.2% return. How many folks will manage to get that on largish Premium Bond Holdings - very few!

jaceyboy

I must admit I am more and more thinking of pulling my PB's, I also dont believe two people win a month win a £1m either, when has ANYONE come out and said they have?

My parents gave me bonds years ago when I was 20 or younger, I have had them ever since (more larger amounts) for the past 26 years and have never won more than £500 in anyone time....

Ifts

arthurdick said:

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...

Same here, I like to wait for the email to alert me of any prizes, hence I post any prizes on here (when I remember) later than others who use the prize checker.
I miss the warrants coming through the letterbox (though I don't miss the trip to the bank to pay them in!).

Primrose

jaceyboy said:

I must admit I am more and more thinking of pulling my PB's, I also dont believe two people win a month win a £1m either, when has ANYONE come out and said they have?

My parents gave me bonds years ago when I was 20 or younger, I have had them ever since (more larger amounts) for the past 26 years and have never won more than £500 in anyone time....

Well, if I won a million I certainly wouldn't be going public with it, encouraging every fraudster and scrounger to my door for miles around.   I'd quietly bank it, be generous to my favourite charities and to those who genuinely need financial help.and try to keep the knowledge to myself.