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Premium Bonds - Does anyone do these?

Discussion in 'General Discussion' started by Kainz, 7 Jul 2006.

  1. Kainz

    Capodecina

    Joined: 15 Dec 2002

    Posts: 21,995

    Location: In a cowfield, London, UK

    http://www.nsandi.com/products/pb/index.jsp

    I'm sure most peeps know by now what these are. Depending on how much you've invested, there's a monthly prize draw in which you have a teeny weeny chance of a 1mill jackpot, plus other tax free prizes. Any money invested can be returned at anytime too.

    I've been thinking about investing about 1-2k, since I have that much floating around, knowing me I'll spend it on something daft so I just thought about putting it into these bonds.

    Anyway, does anyone else have any cash invested in bonds?
     
  2. JAMAL

    Soldato

    Joined: 19 Oct 2002

    Posts: 6,965

    Location: Stoke on trent

    I wouildn't bother with 1-2k myself as the chances of winning with that kind of investment are too low, i would only use them if my other tax free options were used up and then i would like to put about £25k in as the chances are you will win every month (a small amount).
     
  3. AJUK

    Man of Honour

    Joined: 14 Nov 2003

    Posts: 10,949

    They are possibly the worst investment you could make. Just put the money in a high interest savings account and leave it alone, I guarantee you will end up with more money than with premium bonds. There is nothing premium about them.
     
  4. dirtydog

    PermaBanned

    Joined: 18 Oct 2002

    Posts: 47,398

    Location: Essex

    They are a waste of money - don't bother :)
     
  5. D4VE

    Sgarrista

    Joined: 23 Oct 2003

    Posts: 8,899

    Location: Hampshire, UK

    10k would probably win fairly regularly, but Id put that money in an ISA.
     
  6. [DOD]Asprilla

    Capodecina

    Joined: 10 Nov 2003

    Posts: 14,034

    Location: Surrey, by the river

    I have £10 in premium bonds that I was given as a christening gift.

    I've won £50 on six separate occasions, which isn't bad.

    I wouldn't rely on them as an investment though.
     
  7. Kainz

    Capodecina

    Joined: 15 Dec 2002

    Posts: 21,995

    Location: In a cowfield, London, UK

    Okies peeps, ta for the replies.
    I heard some good news from some fellow workers about these bonds, which is why I'd started looking into them. Theres three people at work who've won some minor prizes (couple of hundred) over the years, but they've got around 5k invested.

    Think I'll just stick £100 into some bonds, and put the rest into something like a bonus saver account at nationwide instead.
     
  8. dirtydog

    PermaBanned

    Joined: 18 Oct 2002

    Posts: 47,398

    Location: Essex

    And I bet they'd still have got more by having the cash in a savings account...
     
  9. pugster

    PermaBanned

    Joined: 17 Nov 2002

    Posts: 1,515

    Location: west mids

    was bought 1 bond by a relative when i was born in 1969,never won anything with it in 36 yrs ,not that i ever thought i would :D
     
  10. Bes

    Soldato

    Joined: 18 Oct 2002

    Posts: 7,303

    Location: The Ghetto: AKA Brixton

    Stick it in an NS&I cash ISA instead- highest rate on the market and guaranteed for two years.
     
  11. D4VE

    Sgarrista

    Joined: 23 Oct 2003

    Posts: 8,899

    Location: Hampshire, UK

    How long have you had those?
    That is VERY lucky. I have never won anything - Ive had £10 as a christening gift too and £100 which Ive had for years aswell.

    My brother has 8k and he hasnt won since Oct last year.

    If you're investing 3k or less forget the Premium bonds IMO.

    Apparently the £1M jackpot was scooped by a £8 bond recently - that is incredible luck, not fair :(
     
  12. Hate

    Soldato

    Joined: 18 Oct 2002

    Posts: 7,175

    Location: Sussex

    i've got £10 in bonds from when i was born, and i've won £200 in my lifetim eon them
     
  13. [DOD]Asprilla

    Capodecina

    Joined: 10 Nov 2003

    Posts: 14,034

    Location: Surrey, by the river

    I guess that I've had them for 30 years, and yes, it is very, very lucky. I guess that's just me.

    I've not won anything on them for a while, not for about 8 years, but there was a stage when I was wining something every two years or so.
     
  14. stoofa

    Capodecina

    Joined: 4 Mar 2003

    Posts: 12,133

    Location: Chatteris

    However at the end of the day, there is no savings account that can promise you a chance (no matter how small) of adding a million to your investment.
    There is no gamble with Premium Bonds - you either make nothing or you make something.

    Do you do the lottery?
    £1 a week?
    Well that £52 could earn you interest - or it gives you that chance (however small) of adding a million+ to your investment.

    Just playing advocate here.
    At the £1k - £5k level you aren't making that much interest on the money in a bank.
    If you're making any serious amount of interest then the money is probably not instant access to you.
    With the bonds although not instant access you can get the money back pretty quickly and there is no penalty.
    Sure what you take back maybe no more than you invested, but then again you've got as much chance of winning the prizes as anyone else.
     
  15. Kainz

    Capodecina

    Joined: 15 Dec 2002

    Posts: 21,995

    Location: In a cowfield, London, UK

    Yeah I just opened up a direct isa with them and plonked the cash in there instead.
     
  16. roadie

    Mobster

    Joined: 22 May 2003

    Posts: 2,741

    Location: Hampshire

    I have a fair amount in PB's. I used to win monthly but it's now drying up a bit. There does seem to be a system where newer bonds win more often, which is odd and shouldn't happen. Therefore, I am cashing in these bonds and reinvesting them little by little.

    You may be able to earn more money from other investments but PB's are kinda fun and they are tax free. That's the reason why I invest in them once my ISA allowance is used up.
     
  17. SidewinderINC

    Soldato

    Joined: 8 Feb 2004

    Posts: 5,213

    Location: Dartford, Kent

    ive got £1000 in premium bonds, had it there for about 3 years now. won £125 so far. i know i could have more interest if i kept it in my bank account. but the temptation to spend it is great if i can see it there every time i check my balance :p