NS&I Premium Bonds

I’ve had £675 in the past 6 months on the maximum holding (2.7 percent if that rate continues over 12 months I think though maths was never my strong point). I believe the prize pot went up a couple of months ago and that seems to be reflected in my winnings. It’s pure chance though and no guarantee that it’ll continue - could go either way, win nothing or scoop the £million.

The max you can hold is £50k so no millions :joy:

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It’s gone up to an average of 4% interest now. Obviously it’s not guaranteed. My current rate is about 1.9% based on my holdings and that’s since about September.

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My grandparents bought me some Premium bonds when I was, I forget exactly - 18 or 21. I put them somewhere safe and eagerly awaited my prizes.

I’ve never won anything.

One of these days I should get around to casing them in and putting the money to better use. But first I have to remember where they are.

I have been phenomenally unlucky in the draws

My grandad died in 1977, and he was the proud owner of a £10 premium bond. I have it - a yellowing small piece of paper. He left it to me, not by writing a will but by inking my initials on the premium bond itself.

So presumably it’s still held in his name and I’ve no idea how or even whether I can legitimately claim ownership of it. There could be huge prizes just waiting for a claimant!

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£150 won in the past month (£200 in the past year) on a holding of £10000

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I maxed it out for 3 months with my house deposit and got £25x2 in the same month and nothing else.

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How do people do with the Premium Bonds?

I have won about £100 and that’s it. But hey it’s money I didn’t have! :blush:

I put £500 a month in, I have no interest in other forms of investment and have no real desire to learn, especially with anything that has any sort of risk. Premium Bonds are easy, no risk, can get the money back whenever you like, and someone has to win those prizes. Saw a few months ago someone won £50,000 from a £25 holding, and people in my area win large sums all the time. I also won £100 recently which was my first prize since November 2022, but who knows, maybe one day it’ll be a bigger win.

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My husband swears by Premium Bonds. He has won the odd £25 here and there and once £100. As @Orinoco said, it’s easy, no risk, and the prizes are tax free.

You may be lucky and get a small prize once or twice, or unlucky and get nothing over years.

I found them marginally below the return I’d have got in easy access rates during the very low interest rate era, few years back.

Max holding then. £0 now

I won £2k off of £100 when I was 15, which I cashed out and spent very unwisely.

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In the last 6 months, I’ve won £525

But in general, having Premium Bonds all depends on personal circumstances.

Thing is you are taking on quite a lot of risk. You won’t lose money in nominal terms but you will lose it through inflation. The £1000 you may have today will still be £1000 in ten years time, but worth a lot less in today’s terms i.e. it won’t buy £1000 worth of stuff any more.

As an extreme example, a sovereign coin cost £1 100 years or so ago but now costs around £600. So if you’d £1 then, it would only be worth a fraction of a penny now.

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I don’t really care about that though. As I have no interest in doing any other kinds of investing the rest of my spare money is in a savings account. Given the very modest sums of money I actually have at my disposal, I’d lose far more in fees/losses from other investments than I’d lose from inflation from the premium bonds.

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You can take a look at the recent winners - in general the big prizes are going to people who have a lot of bonds, which I suppose makes sense as they’ve got more entries in the draw. It’s not that they’re luckier, they’ve just bought more chances to win.

Scroll down the list enough though and you’ll find someone in Norwich who’s just won £10k with a £5 bond (their only one!) that they’ve held since 1980, so I’m still living in hope with my small holding.

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I live in Norwich but not me unfortunately :joy:

This is what I do for my kids, £25 into their bonds every month. Planning to do this until they’re 18 so they’ve a little nest egg to use on a car, studies, travel etc.

^^This is what I do too.

Yes the money is losing spending power but they might also win big.

If I had the money to deposit £500 a month then the interest/gains on a different account come in to play. But sadly I do not.