Posted 10th Jun 2020

I have a large amount of savings and only getting £8 or £9 interest per month on my regular savings account with Barclays. I currently have a help to buy isa which is slowly building up nicely but you can only put £200 a month in. Is it worth me putting some in to premium bonds? It would be £10k+ but leaving some still a good amount in the savings account.

Does anybody use premium bonds and have much luck?

Edit - I’ve set up an account and deposited in £14k, I wouldn’t miss the £8 or £9 interest I was getting, with the possibility of getting slightly more.

Does anybody use premium bonds and have much luck?

Edit - I’ve set up an account and deposited in £14k, I wouldn’t miss the £8 or £9 interest I was getting, with the possibility of getting slightly more.

This is the link to predicted luck calculator.

moneysavingexpert.com/sav…or/

£10k may possibly give you £100 a year (tax free), but not guaranteed.

It's a flip of the coin - I've been lucky...

On the flip side, you won't lose any of your money (with the exception of inflation eating away your buying power).

I've won £25 in the past 4 years or something like that.

I went to register online, and it knew what bank accounts I had

is this because of my info I gave? address, D.O.B etc ?

Edited by:"steve.t" 10th JunI believe u certainly can.

bond numbers are automatically bunched together

so your numbers might be

000100

you put £1000 in

001100

you put £20,000 in

021100

etc etc

Thanks for the reply but I meant to say if I put £100 each month for 12 months, then I will have 12 separate bunch of 100 bond numbers. But I want to have 1200 bond numbers together without pulling them out and reinvesting again if that make sense. Can't find the option anywhere.

Hi, you can't change that. It's selected at the time at the next allocation of numbers. I don't really understand why you you want a consecutive block. It doesn't change your chance of winning. As for taking them out, you can pull all of them in one go.

As chance has no memory, you should theoretically have the same odds as 12 separate bonds or one larger bond.

It takes a whole calendar month before your bonds are in the draw, so you're actually lowering your chances of winning on your investment by withdrawing and reinvesting.

Edited by:"britlad" 10th JunAnything less and you can be waiting decades to win anything.

I don’t have any debt at all, I currently live at home. I was going to buy a house until the buyer withdrew from the sale and now left with what was going to be the deposit, probably won’t be house hunting for a while now.

Yes, there was an option to buy for a child.

I’m not sure, I signed up as a new user and had to enter all my details.

Interest rates on savings are so bad, it’s worth the gamble. I wouldn’t miss the £8 or £9.

Thanks, my mama taught me well

in general premium bonds are luck based, so if you have better than average luck then you will benefit, but if you are the sort that never wins anything and just damn right unlucky then it is not for you.

no harm in shoving a few grand in there and see. the potential interest that you forgo with the money in a savings account is not great at the moment so you are not really losing anything much and you may have a chance to win something big.

i find that premium bonds are exciting when you open the account and then you forget all about it and get bored with it if you don't win much or you don't win at all.

Odds of winning anything are 1 in 24500 and are drawn each month.

24500/12=2041.

So buying £2041 means in theory you should win once a year.

So on the same basis if you only buy £20 (ok minimum is £25) worth the odds work out you only win once in 100 years.

Sure as it's random you could buy just the one bond and win the top prize in the first month, but realistically that's not going to happen.

Your £1 bond has the same chance of winning as someone else's £1 bond. There's no luck involved at all.

Or have I just been trolled with the luck thing?

Edited by:"britlad" 10th Junit is luck based. here is a detailed analysis from martin if you have the energy to read it all.

moneysavingexpert.com/sav…ds/

I'm hope someone with a better understanding of statistics than me will help me understand this.

Martin explains averages and the chance of winning. Someone has to win a prize. Do we call them lucky, despite them having the same chance of winning as someone else with the same investment?

This is where I'd appreciate someone with a decent grasp of statistics to help me understand this luck thing and how luckier people allegedly have a higher chance of winning more.

mutley1:

"in general premium bonds are luck based, so if you have better than average luck then you will benefit, but if you are the sort that never wins anything and just damn right unlucky then it is not for you."

Edited by:"britlad" 10th JunIf that's important to you, buy them monthly, then after a year sell them back and re purchase a new lot with nice shiny consecutive numbers

no, it is not possible. your numbers at purchase are unique and they need to stay with the bond. if you want to bunch them together then you would need to withdraw them and buy again in a whole bunch but i think there is a delay in going into the draw if you do this.

it doesn't really matter if they stay as £100 sets or they become £1200 sets. i can't remember from the days that i held premium bonds if you could sell part of a set? so say you bought a bond for £100 and you only sell £20 of it?

i have a decent understanding of statistics but i can't help you i am afraid

Each premium bond costs £1

Every month a random draw is made, each time there is a roughly 24,500 to 1 chance any given bond will be drawn (these odds are on the premium bonds website)

If you have £2,041 of bonds that means you have 2041 chances to win each month

Over the course of a year you will take part in 12 monthly draws, giving you 24,492 (2041 x 12) chances to win

As the odds are 24,500 to 1 one, and the number of draws you've entered is almost 24,500, statistically it's likely you will get 1 win over the course of the year (although as it's a totally random draw that isn't guaranteed)

The appeal with premium bonds is there is a small chance you could get a big win, £1,000,000 is the maximum.

If you can afford to put £10,000 in, that will be 120,000 chances to win over the course of the year meaning you would have to be incredibly unlucky not to get at least 2 wins in a year.

Edited by:"spoo" 11th JunI get where you're coming from, but it doesn't explain why it needs to be in 'bunches of around 2000'.

Won't 80 premium bonds of £25 each stand the same chance of winning?

Also, do the odds of winning slightly decrease each month as the number of bonds in the pot increases? I'm guessing that the number invested outweighs the number withdrawn.

That's not strictly true. Although in theory you could put in £50k and not win anything. After 8 months, you would have more chance of winning the National Lottery than not having won a £25 prize. After 12 months, you would have more chance of winning the lottery twice. Therefore, it is not conceivable that anyone with £50k invested would go more than 12 months without a prize.

The pot of prizes is 1.4% of the eligible bonds. The 1.4% varies depending on decisions taken by National Savings and is usually set at a level to be competitive with instant access accounts interest. As they recently took a decision not to reduce it, it is more competitive than most instant access accounts. As a result, the odds remain consistent no matter how many bonds are eligible. The odds only change when they vary the 1.4%.