Rise of premium bonds????
Discussion
Hello all. Been watching the financial news today about rate cuts and it has got me thinking about my savings. I moved all my investments from equity ISA's to cash in the last year and have it spread across several cash ISA's, 1 year internet based bonds (nationwide) and a few thousand in premium bonds. I've never been too sure about the premium bonds to be honest as they don't actually pay ('win') all that well on average in comparison to savings accounts but I fancied giving them a go. My £3k invested has won very little in the last year though which is a bit off putting. My train of thought is this, that now interest rates are ridiculously low will premium bonds become a more rewarding investment option? Anyone got a good knowledge of them and their workings? I assume the probability of you winning anything will change the more people invest in them (not in your favour!!!) but they shouldn't be effected by todays rate change. Just a few thoughts I've had and I'd be interested to know what anyone else thinks.
Headline in one of the rags today saying that payouts have been halved.10 Pence Short said:
The premium bond pot is now tiny and not worth moving your money to, as far as I'm aware.
I've already got £3k and have had them there for a year. Not really thinking about adding more but I'm considering other options. I know the govt wants me to 'spend to save the countries economy' but I can't see me spunking all my money up the wall being a good option for me personally in times of financial uncertainty. Edited by richyb on Thursday 8th January 17:21
mechsympathy said:
Marvellous! Maybe scratch cards are a better option. 
Puggit said:
Never had a win on £1k of bonds in the past 2 years - going to put the money in shares and hope they go up!
Its hit amnd miss.I bough each of my neices and nehphews £100 worth and I think 4 (out of 10) of them have had £50 back. My own have blown hot and cold...have had a few £50's but nothing for a long time.
Steamer said:
No return on £15k worth of Premium bonds for 6 months now... I was getting £50 / £100 to £150 per month before 
I always found "new" bonds won, old ones didn't. I went through a phase of buying about £400 a month worth, I'd get win after win. Then I stopped buying and stopped winning,... it isn't supposed to work that way.Edited by Steamer on Thursday 8th January 17:29
swerni said:
The amount they pay out tracks the base rate.
I've had premium bonds for the best part of 10 years now.
I am going to cash mine in and put the money into the mortgage offset.
shame really, it did make collecting the post from the mat more interesting.
just done exactly that .. no win at all for 3 months on 25K, so I've put it against the offsetI've had premium bonds for the best part of 10 years now.
I am going to cash mine in and put the money into the mortgage offset.
shame really, it did make collecting the post from the mat more interesting.
I use premium bonds as a small saving type thing and pay in £50 a month and was looking to increase this soon but now thinking its probably not worth it.
I was going to cash a large number of them in this year for my 30th birthday holiday to NYC - looks like thats probably the best option now.
I was going to cash a large number of them in this year for my 30th birthday holiday to NYC - looks like thats probably the best option now.
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