/ Premium Bonds

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TheDrunkenBakers 30 Nov 2019

Anyone got any views/experience? Ive got a few quid I need to keep fairly liquid and it's earning chuff all in the bank. 

Thought I'd try PBs as I may win something but realise there's a great chance I may not.

Frank the Husky 30 Nov 2019
In reply to TheDrunkenBakers:

I had a significant sum invested for about 5 years and the overall return was about 1%, maybe slightly more. Of course someone has to win and it could be you. Why not?

SV 30 Nov 2019
In reply to TheDrunkenBakers:

I have £50k worth at the moment for various reasons. Looking back at what I've won in the last 6 months, It adds up to £350. One month a while back I won £500 which was quite exciting at the time, but only once and never more that. 

Post edited at 16:56
LeeWood 30 Nov 2019
In reply to Frank the Husky:

> Of course someone has to win and it could be you.

But how do we know that anyone wins the big prizes - I know no-one personally, a published name is just a piece of text to me; I have a few bonds - gives you a stupid bit of hope to cling to

Stuart (aka brt) 30 Nov 2019
In reply to TheDrunkenBakers:

https://www.moneysavingexpert.com/savings/premium-bonds/

This was useful when I was looking at saving options. 

Deadeye 30 Nov 2019
In reply to TheDrunkenBakers:

Well NS&I say the pool returns 1.4% - so not the best you can get but not terrible.

The I wrote a long post only to find Martin Lewis has it covered very well: https://www.moneysavingexpert.com/savings/premium-bonds/

So you're very likely to underperform the 1.4% rather considerably.

Edit: Doh! and while I was typing the long reply someone got the link in first!

Post edited at 17:14
Rob Exile Ward 30 Nov 2019
In reply to TheDrunkenBakers:

The more you have the closer to 1.4% you are likely to achieve, and the fact that winnings are tax free avoids complications and improves yield. They're also a bit of fun!

capoap 30 Nov 2019
In reply to TheDrunkenBakers:

Ive got a few £ in them and won £200 this month + the winter fuel payment.  Its ok when you never check and you get a e-mail as a suprize. 1.5% seems about right

didntcomelast 30 Nov 2019
In reply to TheDrunkenBakers:

I average £25 a month with £19,000 invested. Had one win of £500 a couple of years ago which was a nice treat. 

It has earned more than a bank account would and the money is always available. 

djwilse 30 Nov 2019
In reply to TheDrunkenBakers:

My experience is that the Premium Bonds have outperformed my cash isa over the last ten years. Up until recent house purchase I had equal amounts in both of approx 20k.

marsbar 30 Nov 2019
In reply to TheDrunkenBakers:

I like the idea because it's a bit of fun.  I got £500 once and a couple of £50. 

Pedro50 30 Nov 2019
In reply to TheDrunkenBakers:

I have had a single £1 bond since 1956. I have never won. 

ThunderCat 30 Nov 2019
In reply to TheDrunkenBakers:

Me and Mrs Tc have got six regular saving accounts set up across three different banks at the moment, the ones you can only drip feed 250 or 300 quid a month in, but which pay 5 per cent... So we tend to keep most savings in premium bonds, withdraw enough each month to feed the reg savers... And when the reg savers mature we put the dosh back into bonds and then repeat. Never won more than the odd 50 or 25...but hey ho. Feels like the chance of a decent win however remote is still worth a punt, and we're able to get a decent ish return on the six reg savers.

Just noticed of course that hsbc and first direct have now dropped new reg saver accounts to 2.5 percent which is a pain. M and S are still doing 5, I think... But probably going to follow suit.

As a new ish proud grandad i also bought the nipper fifty quids worth last month with an aim of starting a bit of a tradition of bunging in a hundred every birthday and christmas, so when she turns eighteen she'll have a nice little bundle... With the Strict understandibg that if hers hit the jackpot we split the prize two ways... 😄 

Toerag 30 Nov 2019
In reply to LeeWood:

> But how do we know that anyone wins the big prizes - I know no-one personally, a published name is just a piece of text to me; I have a few bonds - gives you a stupid bit of hope to cling to

An office syndicate at my work won in the 90's and they all had enough to buy a new car. There was about ten of them.

Albert Tatlock 30 Nov 2019
In reply to TheDrunkenBakers:

My PB’s this  year have given a return of 1.6%

Moley 30 Nov 2019
In reply to TheDrunkenBakers:

I have won 2x£25 in last few months, but then again, many times I don't. I've no idea how many I have, 1-2k?

I simply forget about them in the knowledge that there is a very, very, outside chance that one day an envelope may be delivered . It is the closest I do to gambling.

No idea of the maths involved compared to lottery, but I know I can always get my money back (less inflation, I know).

The Wild Scallion 01 Dec 2019
In reply to TheDrunkenBakers:

Aren't these the fancy bespoke BDSM things ? 

Never tried them . 

😂

BnB 01 Dec 2019
In reply to TheDrunkenBakers:

Cash returns are so low it’s hardly worth bothering. I prefer fixed income (govt and corporate bonds) funds. Most experienced investors keep a slush fund here:

https://www.ishares.com/uk/individual/en/products/251840/ishares-corporate-bond-15yr-ucits-etf

You'd expect get an average return of 2% pa over a five year period. It’s pretty safe relative to anything but govt bonds, and less volatile, and nearly as safe as cash. A case of risk v reward as ever.

LeeWood 01 Dec 2019
In reply to Toerag:

Isnt that National Lottery you're talking about ? Bonds have to be in your own name - plus I think there's an activation delay. 

I remain sceptical  

TheDrunkenBakers 01 Dec 2019
In reply to TheDrunkenBakers:

I spoke to my financial advisor yesterday after I posted and he said he'd won £25k on the back of £12ks worth of PBs and reckons for what I want, PBs are perfect.

hokkyokusei 01 Dec 2019
In reply to Deadeye:

> Well NS&I say the pool returns 1.4% - so not the best you can get but not terrible.

Of course most people will be getting considerably less than that. My ISA has averaged about 8-9% the last few years.

hokkyokusei 01 Dec 2019
In reply to Albert Tatlock:

> My PB’s this  year have given a return of 1.6%

The same as inflation (October figures). So your money is now worth the same as it was a year ago.

BnB 01 Dec 2019
In reply to hokkyokusei:

> My ISA has averaged about 8-9% the last few years.

Apples and oranges. Your ISA is exposed to equity risk. It likely tanked last year and performed much better in ‘17 and ‘19. I don’t think that’s what the OP is after even if it’s a better long-term investment by most historical measures.

Albert Tatlock 01 Dec 2019
In reply to hokkyokusei:

Still might get the big win in December’s draw 🤩

Toerag 02 Dec 2019
In reply to LeeWood:

Deffo bonds, this was before the lottery existed. They were no doubt bought in someone's name.

yorkshire_lad2 02 Dec 2019
In reply to TheDrunkenBakers:

You can get your funds back whever you want them (unlike the national lottery).
You may win something, but don't hold your breath. Treat it as a bit of fun.
Money is backed by the govt (separate the FSCS limit).
This month's jackpot winners and some info
https://nsandi-corporate.com/news-research/news/christmas-comes-early-hampshire-isle-wight-and-stockport-decembers-premium-bonds


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