Whats the pro's and con's of premium bonds???

 

Only investing around £250-500.

 

Pros: monthly draws,
can sell them back at any time for the same money
chance of winning more than the usual bank intrest rate

Cons: you don't gain any intrest on the amount you have.
you can only have £30,000 per person
they take a month to get entered into the draws

 

In your case very little then, unless of course you are very very lucky

Chip

 

get a proper bank accout and buy a lotto ticket - your odds of a big win are MASSIVELY higher and you'll get a decent return in the meantime.

 

Pro - Tax free

 

We have just under £30k of bonds, get a win practically every month, sometimes £50, other times £150. The interest in a high interest account is probably more but then one month you may get lucky and win £5k+! Benefit is there is no risk.

But with only £500 to invest you may only get 1 win a year if your lucky.

 

My daughter for her 8th birthday got 1 bond from a family friend. First month in the draw she won £100 ! Must be lucky !

R.

 

the risk is that inflation errodes the value - exactly the same as a decent cash account ....except bonds get erroded faster as the return is less (assuming 30k)

 

...so how old is your daughter? because in recent years the minimum purchase is 100 pounds worth of bonds?


The equivalent interest rate is 3.60, tax free - so not too bad for a high-rate tax payer. Oh, and there are FIVE one million pound jackpots in June - so get yer bonds quick

All the gory details at NS&I

mb

 

My Son has had a premium bond since he was born. He is now 16 and not won a penny

 

I have had one since they started - 1957?

And another since 1963 - nowt on either of them!

BUT, this month I won 1 x £500 + 2 x £50s

They are a complete waste of time for less than £5000 IMO ..... in fact I would say that they are a waste of time for anything less than the maximum really.

The odds of winning a prize is 24,000 - 1 ...... so, a £24,000 holding would/should return a prize a month

 

there are 16 billion PB out there - there may be 5 jackpots, but them aint good odds!

 

CON in every sense. Supposedly a random draw, but everyone I know who has them won a few quid in the first couple of draws, then nothing. Spooky cooincidence.

 

Was a few years ago - I guess when you could buy singles - as she only has 1 bond.

R.

 

Hmm .won £50 this month.Thought I'd sold mine!

Don't even know how much of a holding I have and can't see any way on that website to find out.

 

Website only showing wins up to June and not July at the moment. How do you know youve won or are you looking at last months.

Chip

 

Sorry,meant June .

Had a cheque drop through the door at my parents house which they forwarded.

I think piddly wins you just get a cheque in the post.Win a biggy and I think you get a 'visit'

 

I won £100 in June

I am currently running at a 8.6% return on my investment - which is pretty good considering the remote chance of a BIG-UN!

I maintain that these should be only bought by those with £24,000+ (to win once a month on average)