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Thinking about investing in premium bonds?

sme24185 Avatar
5y, 7m agoPosted 5 years, 7 months ago
Hi people been thinking of investing in bonds for a while now but unsure if it's a good thing? I only want to start off small at the min, eg £100 to start and then £100 every month or other month so not looking to put loads into it, I no it no earn anything on the money I put in but is there anything I need to no? Do's and donts etc
Please let me no if I should do this or is there anything better to invest in? Thanks
sme24185 Avatar
5y, 7m agoPosted 5 years, 7 months ago
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Comments/page:
banned#1
Do it.
#2
I no you can't g/tee winning anything but has anyone on here won big on a small investment?
banned#3
bargainhunter2009
You get a certificate for each premium bond, not really a monthly savings plan as you would need to "buy" a new bond each month


That's crap. You get a 'certificate' for every batch of bonds you buy. You buy £500, you get 1 bond certificate telling you what range of bond numbers you have.

It's a great monthly saving scheme - you can do it via standing order.
#4
Me and my children all have premium bonds. I started small too. With my 1st £100 I won £50, so that worked out at fab interest in a way.

I am not worried that im not earning monthly interest, I am just greatful I don't lose any value.

My Daughters trust fund lost half her investments within 12 months, so this is why we stopped paying into that and just buy them bonds now. Safer xx
banned#5
sme24185
I no you can't g/tee winning anything but has anyone on here won big on a small investment?


I won about 6 months worth of £50 on £8k a few years back. Reinvest and watch it build.

They give £25 prizes now as well.

Always good to see the £500 holders winning big. Check out the site and click on 'high prize winners'.
#6
I've got a ISA but you have to have a fair bit in to get a decent amount out of it, I want to have the chance to win (longshot)
#7
Thanks for all the info all I want is to put the money in have the chance to win and if I do need the money on a rainy day I can take it and i don't have to pay any monthly fees to use it
#8
you can also have any winnings paid straight back in, thats what I do, at the end of the day it's money I didnt have so why not just reinvest.
Also when you pay money in, it has to be in the bonds a full calendar month before being entered into the prize draw, so if you are going to invest your first batch, do it before the end of april, otherwise it wont be entered until july. howvever, winnings paid directly back in get entered for the next draw. im pretty sure im right on that
banned#9
bargainhunter2009
I have premium bonds, they are rubbish. At least with an ISA you get something


If you have £10 worth, yes, chances are you won't win much.
banned#10
tatemze
you can also have any winnings paid straight back in, thats what I do, at the end of the day it's money I didnt have so why not just reinvest.
Also when you pay money in, it has to be in the bonds a full calendar month before being entered into the prize draw, so if you are going to invest your first batch, do it before the end of april, otherwise it wont be entered until july. howvever, winnings paid directly back in get entered for the next draw. im pretty sure im right on that


April's will be entered into June draw.
#11
yes, which is what I said, if not put in til after end of april, wont be entered until july. so if bought on the last day of april or before, will be in junes and julys and so on, wheras if bought on the 1st(i know its a sunday, but just for example) of may, wouldn't be entered until july.


Edited By: tatemze on Apr 25, 2011 19:36
#13

Not promising when you see it compared to a savings account
#14
Between three of us had £90,000 tied up for a year most we got was a few 100s and loads of 25s
1 Like #15
If you've used all your ISA allowance and want a risk free place to put your money where you might win big then Premium Bonds are the way to go.
banned#16
bargainhunter2009

Not promising when you see it compared to a savings account


You're missing the point. You don't have to do all or nothing. You should have a bit of everything.
#17
Is there any other bonds, shares, etc to maybe look into invest in
banned#18
sme24185
Is there any other bonds, shares, etc to maybe look into invest in


Depends how much money you've got. Use you cash and equity ISA allowance first, then look at other options.
#19
I'm looking to start small, (not done this before) and maybe put £50- £100 every month or every other
Do I have other options?
#20
invest in this or invest in that either way your not getting any real value for your money.

shares offer the best "value" but every time you buy a share your always losing out
#21
Well I cant see a g/tee a double your money? And free cash lol
So I'm after sampling what's best to go for?

I don't no much about shares at the min
banned#22
Are premium bond 'winners' automatically notified and the money added to their 'investment' or do you have to check and claim it, like you do in lottery?
#23
Are these better than S & S isa's?

I have a £400 month going into an isa that will be reaching the limit soon
#24
Adnan786
Are premium bond 'winners' automatically notified and the money added to their 'investment' or do you have to check and claim it, like you do in lottery?


Automatically notified I believe, apparantly if you win a million some guy comes round to your house lol.
1 Like #25
Dehumanization
Adnan786
Are premium bond 'winners' automatically notified and the money added to their 'investment' or do you have to check and claim it, like you do in lottery?


Automatically notified I believe, apparantly if you win a million some guy comes round to your house lol.


u can check to see if you've won online, I think the draw is usually on the first and takes a few days to come online. If you havent opted to automatically reinvest, you get a payment, similar to a cheque about two weeks later, with a letter saying what bond(s) won. If you've chosen to automaically reinvest, they get put straight back in, and you just get a cert of your new bonds, unless you win £5000 or more, where they get in touch to find out what u want to do with it. iv no idea about if u win a million
banned#26
tatemze
Dehumanization
Adnan786
Are premium bond 'winners' automatically notified and the money added to their 'investment' or do you have to check and claim it, like you do in lottery?


Automatically notified I believe, apparantly if you win a million some guy comes round to your house lol.


u can check to see if you've won online, I think the draw is usually on the first and takes a few days to come online. If you havent opted to automatically reinvest, you get a payment, similar to a cheque about two weeks later, with a letter saying what bond(s) won. If you've chosen to automaically reinvest, they get put straight back in, and you just get a cert of your new bonds, unless you win £5000 or more, where they get in touch to find out what u want to do with it. iv no idea about if u win a million


When you invest online, say £5000, do you get certificates for your bonds? What happens if you lose your certificates? Also, if you want to get your money out, can you transfer them to your current account online?
1 Like #27
Adnan786
tatemze
Dehumanization
Adnan786
Are premium bond 'winners' automatically notified and the money added to their 'investment' or do you have to check and claim it, like you do in lottery?


Automatically notified I believe, apparantly if you win a million some guy comes round to your house lol.


u can check to see if you've won online, I think the draw is usually on the first and takes a few days to come online. If you havent opted to automatically reinvest, you get a payment, similar to a cheque about two weeks later, with a letter saying what bond(s) won. If you've chosen to automaically reinvest, they get put straight back in, and you just get a cert of your new bonds, unless you win £5000 or more, where they get in touch to find out what u want to do with it. iv no idea about if u win a million


When you invest online, say £5000, do you get certificates for your bonds? What happens if you lose your certificates? Also, if you want to get your money out, can you transfer them to your current account online?


I always invest at the PO, but I get a certificate for my bonds in the post a couple of weeks later, obv as each bond is £1, u just get a certicate for each time u buy with the numbers of ur new bonds on, not individual. Iv no idea what happens if u lose any of ur certs, you get given a bond holder number that u use for checking online, im sure u could apply for it to be sent out again.

theres more info here
http://www.nsandi.com/savings-premium-bonds
#28
you used to get a new "bond" each time you invested. but that wastes paper/postage, so they've changed recently and you just get a new list of your investments as and when they change, i.e. when you take some out or add some or win etc.

plus they've now started an online service for investments/cashing in, which, after the initial pain of setting up, is very simple.

it really is extremely straight forward to become a premium bond holder.

you may not win a lot, but you always have the chance!

i like to check the winners lists from time to time, obviously a lot of the big winners have maximum £30k holdings, but occasionally you see someone who just has maybe a few hundred bonds and has had them a while, therefore likely that they are pretty old, and they scoop a big win - it's quite heartwarming, for me anyway.

i've had bonds for quite a few years now - sometimes i go months without a win, still nice to check every month though.

not a big deal if you lose your bonds as all records are kept with NSI anyway, so you'd just have to prove who you were to get a duplicate certificate.


just do it, easy way to save up a decent nest egg
#29
Thanks everyone for the info I've done it.
What do the numbers go upto? How many come out every month?
Thanks
#30
Best of luck, I have had £110's worth for over 20 years and have never won a penny.

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