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    Premium Bonds - any good?!

    I've got some money, and my options are a 2%(ish) ISA or Premium Bonds. Anything I should be aware of in regard to premium bonds? If I need to withdraw the money for some reason, does it take long?

    Thanks,
    Ed

    24 Comments

    They changed the system for cashing in at the start of the year. If you want to do it online now, you have to send them a form in the post (from their website). I don't know how their working now, but back in late Feb they were 4 to 5 weeks behind processing the forms.

    Other than that, no problem. I made 7.5% out of mine last year, better than the bank!
    Edited by: "steve1221" 4th Apr 2011

    Banned

    Premium Bonds all the way. About 5% for me last year, but year before was about 15%.

    And you might be that lucky million pound winner!

    steve1221

    They changed the system for cashing in at the start of the year. If you … They changed the system for cashing in at the start of the year. If you want to do it online now, you have to send them a form in the post (from their website). I don't know how their working now, but back in late Fen they were 4 to 5 weeks behind processing the forms.Other than that, no problem. I made 7.5% out of mine last year, better than the bank!


    In March NS&I told me its now 6 to 8 weeks

    graham gill

    In March NS&I told me its now 6 to 8 weeks




    Of course... being a government dept the wait will obviously get longer, not shorter !

    If you can only find 2% ISA you need to look harder!! Thats a rubbish rate!!

    Depends if you want a guaranteed return (ISA) or the risk of an unpredicatable return, that could vary from nothing to £1m

    Banned

    richardcotton

    If you can only find 2% ISA you need to look harder!! Thats a rubbish … If you can only find 2% ISA you need to look harder!! Thats a rubbish rate!!Depends if you want a guaranteed return (ISA) or the risk of an unpredicatable return, that could vary from nothing to £1m



    £1m return on an ISA..... wow! (Sorry, misread post)
    Edited by: "JonnyTwoToes" 4th Apr 2011

    I've had an average of 0% in the past couple of years on my Premium Bonds. If you are going to open an ISA you have to do it tomorrow in a branch to get this year's allowance. Santander are offering 3.3% till tomorrow.

    Banned

    shibi din

    I've had an average of 0% in the past couple of years on my Premium … I've had an average of 0% in the past couple of years on my Premium Bonds. If you are going to open an ISA you have to do it tomorrow in a branch to get this year's allowance. Santander are offering 3.3% till tomorrow.



    If it's not a personal question, how many have you got?

    JonnyTwoToes

    £1m return on an ISA..... wow!



    He didn't say £1m return on an ISA.

    JonnyTwoToes

    If it's not a personal question, how many have you got?



    I've got about £13,000 at the moment. I haven't been to check right now but I think in the past couple of years I've had one £25 win (not worth switching the calculator on to see what percentage that works out at!!). When I had around £20,000 I only used to win a couple of times a year.

    Banned

    shibi din

    I've got about £13,000 at the moment. I haven't been to check right now … I've got about £13,000 at the moment. I haven't been to check right now but I think in the past couple of years I've had one £25 win (not worth switching the calculator on to see what percentage that works out at!!). When I had around £20,000 I only used to win a couple of times a year.



    They've just changed the site - you can now check for all unclaimed prizes just from your holder number. £13,000 and now wins in a year is hard luck.

    JonnyTwoToes

    They've just changed the site - you can now check for all unclaimed … They've just changed the site - you can now check for all unclaimed prizes just from your holder number. £13,000 and now wins in a year is hard luck.



    Thanks. I know I definitely don't have any unclaimed prizes as mine are automatically reinvested, and I receive a certificate through the post telling me that's the case. Yes, it is damn bad luck but I don't want to get rid as you never know if that £1M is just round the corner .............

    Original Poster

    richardcotton

    If you can only find 2% ISA you need to look harder!! Thats a rubbish … If you can only find 2% ISA you need to look harder!! Thats a rubbish rate!!



    That is just with Natwest. If I went with them I could invest more as I could instantly switch money into my current account if I needed to in an emergency. Either 2% with more money, or higher percent with less money (but I'd rather keep everything at natwest where my student current account is).

    Original Poster


    shibi din

    I've got about £13,000 at the moment. I haven't been to check right now … I've got about £13,000 at the moment. I haven't been to check right now but I think in the past couple of years I've had one £25 win (not worth switching the calculator on to see what percentage that works out at!!). When I had around £20,000 I only used to win a couple of times a year.



    Doesn't bode too well for me then. I've only got around £3,000ish to play with...

    Ive cashed in bonds, easy and didnt takke long, printed the forms of myself and posted them off, think i got the money back within a week
    Edited by: "loupomm" 4th Apr 2011

    Banned

    generally a really bad investment but you might get lucky

    Banned

    loupomm

    Ive cashed in bonds, easy and didnt takke long, printed the forms of … Ive cashed in bonds, easy and didnt takke long, printed the forms of myself and posted them off, think i got the money back within a week


    not any more you wont. Takes 4-6 weeks.

    I have premium bonds and have won once in 8 yrs, but then again I dont have a massive amount in them.
    My children also have some too. We were putting their money into the Government accounts previously, realised 1 of my daughters account even though had £1200 put in, only gained £600 of that due to the way the shares fell.
    So all their money go into Premium bonds now where they have a chance of winning big, but at least they will not lose any money.

    point to note about ISA is that they entice you with a big int rate but after the first year you get next to nothing in interest.

    Banned

    Bear in mind there is a 30 grand limit on premium bonds.

    Joey - most people I know move banks each year for their ISA

    bykergrove

    Joey - most people I know move banks each year for their ISA



    Yes your right but apparently there's loads more that don't , just highlighting it

    premium bonds in general offer a very poor return

    however people see them as a "safety net" and are enticed by the million pound prize

    fair enough

    Ive got a few grand of premium bonds and only seem to win when I buy more lol

    Most of the bigger prizes seem to goto those with blocks of 5k. The odd smaller holding slips through but thats just my observation.
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