premium bonds (merged)

mbamick

pkrnts wrote:

Anyone know which date the draw is held on each month?

I had a quick browse on the nsandi site but didn't find anything, surely it's a fixed date isn't it?

Thanks!

We usually check Have You Won on or after the 5th working day of the month. The latest month's results are usually there then.

Stonk

dunstonh wrote:

On average, the payouts are lower than savings accounts.

Not necessarily. As a higher-rate taxpayer who has used up all available risk-free tax-free savings opportunities, Premium Bonds average better than any other risk-free savings unless I'm prepared to risk ICICI (and having done so for a couple of months, I no longer am). Thers are occasional accounts that pay a little over 5%, but they always have a bonus component in their rate (and then I lose interest when I shuffle the money after six months), or are highly inaccessible.

grumpyoldgit_2

Stonk wrote:

Not necessarily. As a higher-rate taxpayer who has used up all available risk-free tax-free savings opportunities, Premium Bonds average better than any other risk-free savings unless I'm prepared to risk ICICI (and having done so for a couple of months, I no longer am). Thers are occasional accounts that pay a little over 5%, but they always have a bonus component in their rate (and then I lose interest when I shuffle the money after six months), or are highly inaccessible.

As a higher rate taxpayer I agree completely (and feel the same about ICICI) - I am in the fortunate position of being able to buy a block of PBs for a bit of fun with a good chance of winning and achieving a higher tax free return than I could hope for from the paltry assortment of savings products available at the moment. But I do need the money to be accessible so cannot lock it up in property etc. PBs are a viable component of a balanced investment portfolio.

I pay enough tax - this is a good way of reducing the burden - especially as Stonk says for "a higher-rate taxpayer who has used up all available risk-free tax-free savings opportunities"

Cheers
GoG

firbyfred

we have had £20,000 worth of PB for the last3 years and are down on what we would have made in savings accounts, especially this year we have had nothing since May

MoneyMonkey

Does anyone know at what investment level PBs become viable? I have been told that one needs to have a substantial investment for them to pay off. However, surely one's odds are based per £1?

charlieboycat

MoneyMonkey wrote:

Does anyone know at what investment level PBs become viable? I have been told that one needs to have a substantial investment for them to pay off. However, surely one's odds are based per £1?

If I recall correctly NS&I say the odds per month per £1 bond are 24,000 to 1 against winning a prize. In which case £24,000 might, theoretically but conservatively, win you 12 @ £50 = £600 pa. A 2.5% net-of-tax return. Of course - odds in a lottery mean that it never works out like that in practice.

I've always understood that those with sufficient dosh to spread their investments around (and who like the thought of being a millionaire) go for the £30k maximum holding.

welshgirlcats1

Just won 3 lots of 50.00 on my first go

marion

Stonk

Yeeha! Thanks for reminding me to check this month's draw. I got a couple of 50s, putting me back on track to match what I'd have got in a savings account.

innovate

Also got a couple of fifties this month - but this (with previous winnings) really doesn't come anywhere near what I'd get in a savings account. Especially not since the cheques for the small wins seem to be arriving towards the end of the month in which you win (my last lot arrived on Sept 23 - a Friday. The cheques didn't clear until the next Friday, 30th).

Nonetheless, I am sticking with my PBs for the time being, for the flutter

pkrnts

Yay, just checked and have won my first £50 (my 3rd draw with 2k bonds)! Nice feeling