A Couple of Premium Bonds Questions

edited 30 November -1 at 1:00AM in Savings & Investments
17 replies 1.6K views
DoppleDopple Forumite
373 Posts
edited 30 November -1 at 1:00AM in Savings & Investments
Having taken up my full ISA allocation (and have the funds to do the same again next tax year) I am going to dabble in Premium Bonds.
My main question is what is the best time of the month to deposit money, taking into account the month wait to be entered into a draw and the time it takes for the deposit to clear?

Also, my girlfriend has a £2 bond (that her Mam bought in 1967).
The number seems to be invalid on the NS&I search.
Is this bond still valid and if so how do you check to see if it's ever won anything?

Thanks.
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Replies

  • AegisAegis Forumite
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    Dopple wrote: »
    Having taken up my full ISA allocation (and have the funds to do the same again next tax year) I am going to dabble in Premium Bonds.
    My main question is what is the best time of the month to deposit money, taking into account the month wait to be entered into a draw and the time it takes for the deposit to clear?

    Also, my girlfriend has a £2 bond (that her Mam bought in 1967).
    The number seems to be invalid on the NS&I search.
    Is this bond still valid and if so how do you check to see if it's ever won anything?

    Thanks.
    Have you considered other options? If you're not a higher rate taxpayer, you're statistically more likely to come off better by saving your money in a normal savings account and spending half the interest on Lotto tickets. If that doesn't put you off them, then you should ask yourself why you'd "invest" in them over the other suggestion ;)

    Anyway, I think the rules are that if you buy the bond you have to wait a full calendar month before you're eligible. If this is the case, then you should buy on the last day of the month. Check the site to find out if this is correct though.
    I am an Independent Financial Adviser
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • MikeyorksMikeyorks Forumite
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    Towards the end of the month .. but taking the clearance times into account in order you 'have' the Bonds by the month end :

    http://www.nsandi.com/products/pb/howitworks.jsp#cdcc3

    I don't think you can search on a Bond number - it's the 'Holder' number you need. It will still be valid .. but may be recorded against an old address in which case any prizes (unlikely in the light of the value) won't have been notified (but will still be available). You (she .. to be accurate) can contact them for the Holder number if you don't have it. As here :
    http://www.nsandi.com/help/holdersnumbers.jsp
    If you want to test the depth of the water .........don't use both feet !
  • westy69westy69 Forumite
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    i dont see why people are so negative about these at the end of the day £3k or whatever amount you choose upto the £30ki s never going to earn you a fortune in interest so why not stick it in PB's? at least you have a chance of winning something all be it a small chance .....

    is that the wrong view?

    BTW what Aegis says is correct about the timing
    i am new to this investing business and value peoples experience/opinions as a learning tool - thank you
  • ariba10ariba10 Forumite
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    You can buy bonds online.

    If you buy before midnight on the 31 Jan they will be included in the March draw.
    I used to be indecisive but now I am not sure.
  • Aegis wrote: »
    Have you considered other options?

    Aegis is right. I have held the maximum allowance of premium bonds for many many years and admittedly have had a number of £50 and £100 wins and once had a £1000 win and a £500 win but even taking these into account I would have been better putting the money into a high interest account which guarantees you interest every month or year. There are no guarantees with premium bonds apart from the old saying that if there's winnings to be won then "somebody's got to win it"
    I've just withdrawn all of mine having read somewhere on this site that the interest rate on premium bonds has just been reduced making winning even less likely. Good luck
    :rotfl::rotfl: :j :j 87.2% of all statistics are made up on the spot:j :j :rotfl: :rotfl:
  • dunstonhdunstonh Forumite
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    I am going to dabble in Premium Bonds.

    Would you put your money in a savings account and then withdraw the money each month and buy scratch cards? That is effectively what you are doing with Premium bonds.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Pendle_GazzaPendle_Gazza Forumite
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    dunstonh wrote: »
    Would you put your money in a savings account and then withdraw the money each month and buy scratch cards? That is effectively what you are doing with Premium bonds.

    I don't go in for all these negative comments about bonds. We all lose out every day on all kinds of bills and purchases. It's just a bit of fun, and a lot of luck.

    A small percentage of your cash ain't gonna do any harm. I've got £5K, won very little, but hey, I like the thought it 'could' happen ;-) Go for it, and good luck.
  • AegisAegis Forumite
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    I don't go in for all these negative comments about bonds. We all lose out every day on all kinds of bills and purchases. It's just a bit of fun, and a lot of luck.

    A small percentage of your cash ain't gonna do any harm. I've got £5K, won very little, but hey, I like the thought it 'could' happen ;-) Go for it, and good luck.
    The problem is that people see them as more than a little fun. Often people think they are actually a good investment, citing the claim that you can always get your money back when you want to. The problem with that is that with CPI at 2.1% and RPI at about 5%, that capital value is worth 2-5% less each year. Putting it into a saving account mitigates that loss to a greater or lesser extent, but the only real method to increase your money is to consistently beat inflation in the long run.
    I am an Independent Financial Adviser
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • westy69westy69 Forumite
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    dunstonh wrote: »
    Would you put your money in a savings account and then withdraw the money each month and buy scratch cards? That is effectively what you are doing with Premium bonds.

    but you dont get your money back on the scratch card if you dont win.

    just my opinion each to his/her own i guess
    i am new to this investing business and value peoples experience/opinions as a learning tool - thank you
  • westy69westy69 Forumite
    161 Posts
    Aegis wrote: »
    The problem is that people see them as more than a little fun. Often people think they are actually a good investment, citing the claim that you can always get your money back when you want to. The problem with that is that with CPI at 2.1% and RPI at about 5%, that capital value is worth 2-5% less each year. Putting it into a saving account mitigates that loss to a greater or lesser extent, but the only real method to increase your money is to consistently beat inflation in the long run.

    again a good point but with the cost of living including owning cars (assuming you do) you can never avoid losing momey however hard you try unless you trade cars as an example, i can understand your point about CPI and RPI but i think that sometimes people get carried away with this idea and as pointed out 5K is hardly going to earn or lose a fortune in interest.
    i am new to this investing business and value peoples experience/opinions as a learning tool - thank you
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