Online Premium Bond account

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fly-catchers
fly-catchers Posts: 642 Forumite
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in Savings & investments
I recently opened up an online NS&I account and brought £1000 worth of premium bonds. I have a few ancient bonds going back to 1958, can I add these to my online account and keep them all in one place. I do have two different holders numbers. The new online one and a paper one which I was issued with from NS&I in the early 90's.

Also since getting my first RM NRA60 pension alongside my wages while I still carry on working. I have upped my S&S ISA monthly payments from £300 to £600 from this month. Given the current correction on the stock market is that a good or bad move? As I don't intend cashing my ISA anytime soon I guess it's a ok move! I have maxed out on my various higher interest current accounts and any saving accounts connected to them. Which is why I thought I would put some into premium bonds as well.
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  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
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    fly-catchers wrote: »
    Also since getting my first RM NRA60 pension alongside my wages while I still carry on working. I have upped my S&S ISA monthly payments from £300 to £600 from this month. Given the current correction on the stock market is that a good or bad move? As I don't intend cashing my ISA anytime soon I guess it's a ok move! I have maxed out on my various higher interest current accounts and any saving accounts connected to them. Which is why I thought I would put some into premium bonds as well.

    Nobody knows whether or not the market correction will continue, or whether it will turn into a crash, or whether it will stabilise for a period, or whether prices will recover quickly. It is impossible to time the market. Given that, if you are investing within your risk tolerance, and over a sensible timeframe, then putting more disposable cash into investments now should, over the long term, see you make better returns than holding cash.

    You would still get a better guaranteed return having the money in a different savings account than in premium bonds, e.g. ICICI Bank at 1.35% (almost at the mythical 1.4% premium bonds return). Alternatively, if you don't need easy access then Atom Bank will give you a 1.95% fixed rate savings bond over 1 year. I don't see the point of gambling on premium bonds when you can get these returns guaranteed.
  • AndyPK
    AndyPK Posts: 4,241 Forumite
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    yeap you should be able to add old premium bonds.

    There is also an app which is good, and you can add different holders names to it. (
  • fly-catchers
    fly-catchers Posts: 642 Forumite
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    ValiantSon wrote: »
    You would still get a better guaranteed return having the money in a different savings account than in premium bonds, e.g. ICICI Bank at 1.35% (almost at the mythical 1.4% premium bonds return). Alternatively, if you don't need easy access then Atom Bank will give you a 1.95% fixed rate savings bond over 1 year. I don't see the point of gambling on premium bonds when you can get these returns guaranteed.

    As a postie I see a lot of regular Premium Bonds wins going to people on rounds I have done. Some get two or three most months so I guess they must have the max invested or just very lucky or both! I did have a ICICi account a while back and found it rather odd when trying the its access its old fashioned web site! But may well open another one up.
  • AndyPK
    AndyPK Posts: 4,241 Forumite
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    Yes they would have a lot invested. And only be getting £25 a month.

    Not sure why they would be getting more than 1 letter a month though.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
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    ValiantSon wrote: »
    Nobody knows whether or not the market correction will continue, or whether it will turn into a crash, or whether it will stabilise for a period, or whether prices will recover quickly. It is impossible to time the market. Given that, if you are investing within your risk tolerance, and over a sensible timeframe, then putting more disposable cash into investments now should, over the long term, see you make better returns than holding cash.

    You would still get a better guaranteed return having the money in a different savings account than in premium bonds, e.g. ICICI Bank at 1.35% (almost at the mythical 1.4% premium bonds return). Alternatively, if you don't need easy access then Atom Bank will give you a 1.95% fixed rate savings bond over 1 year. I don't see the point of gambling on premium bonds when you can get these returns guaranteed.

    Ignoring the deposit months, the PB pot is still higher than 1.35%.

    I'll carry on gambling my interest in the current climate.
  • Grandmama
    Grandmama Posts: 148 Forumite
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    To andypk. Each premium bond win gets sent in a letter. So if you Get 3 wins in one month, that is 3 cheques, one i n each letter.
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
    edited 11 February 2018 at 2:10PM
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    fly-catchers wrote: »
    As a postie I see a lot of regular Premium Bonds wins going to people on rounds I have done. Some get two or three most months so I guess they must have the max invested or just very lucky or both! I did have a ICICi account a while back and found it rather odd when trying the its access its old fashioned web site! But may well open another one up.

    The statistical chance of winning enough to beat the interest offered elsewhere is low and definitely stacked against you. Just because you see regular payouts to some people doesn't mean that the chances are good. You risk falling into the trap of confirmation bias if you follow that line.

    If you don't like ICICI then you can get 1.3% with Tesco Bank, which you are still, statistically, not likely to beat with premium bonds.
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
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    PeacefulWaters wrote: »
    Ignoring the deposit months, the PB pot is still higher than 1.35%.

    I'll carry on gambling my interest in the current climate.

    Your choice, but the majority of people will not realise that mythical 1.4% annual return. I see no good reason for the majority of people in this country to use premium bonds: they really are a poor choice for most (but a good choice for a small minority).
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
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    ValiantSon wrote: »
    Your choice, but the majority of people will not realise that mythical 1.4% annual return. I see no good reason for the majority of people in this country to use premium bonds: they really are a poor choice for most (but a good choice for a small minority).

    But 1.4% is the value of the prize fund.

    For easy access no hoops saving it's decent.

    You can't just magically magic away a jackpot that they pay.
  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    PeacefulWaters wrote: »
    But 1.4% is the value of the prize fund.

    For easy access no hoops saving it's decent.

    You can't just magically magic away a jackpot that they pay.

    The winnings are also free of tax, so quite useful if you are a taxpayer and have used up all your allowances :)
    "In the future, everyone will be rich for 15 minutes"
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