The Truth about Premium Bonds: What's YOUR Chance of Winning?

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In March 2023, the prize rate for NS&I’s premium bonds rose to 3.3%, thanks to the fifth increase in the past 12 months. That’s great news for the 22 million premium bond customers, as it’s higher than most instant-access savings accounts are offering, but does the prize rate tell the full story of how much you can expect to win?
In this video I explain how premium bonds work, so you can decide whether they’re good value and should form part of your savings and investment plan.
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Опубликовано:

15 июл 2024

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Комментарии : 61

@pmw3839 6 месяцев назад

I have £50k in Premium Bonds and it is nice having random small wins frequently throughout the year. It may not be the best place to put my money, but it feels good. And I don’t have the worry and stress of it diving in value overnight. I also always have the hope of a really big win. Hope is priceless. It is the feel good factor. I also paid off my mortgage early when everyone was telling me that wasn’t the best thing to do. But it felt so good, and I no longer had it hanging over my head like a Damocles sword, should I lose my job or get sick or something. Sometimes the maths benefits are not as important as the psychological benefits.

@deltaechomusicnh555 5 месяцев назад

How much do you make a year in premium bonds? Just curious, I'd prefer to put that 50k in an ISA that pays 5.08% interest, you'd make a guaranteed £2900 in a year.

@TheHumbuckerboy 4 месяца назад

@@deltaechomusicnh555 Would an ISA such as that not be taxed however ? Therefore the resulting interest would be less than £2900 per annum .

@deltaechomusicnh555 4 месяца назад

@TheHumbuckerboy No ISA's are tax free savings accounts. That's the whole point of ISA's.

@TheHumbuckerboy 4 месяца назад

@@deltaechomusicnh555 Thanks

@anthony1636 2 месяца назад

@@deltaechomusicnh555 Apart from the fact I cannot find any ISA that is paying 5.08%. My Premium Bonds return on £50k averages £275 per Month. Although not guaranteed there is also the chance to win a bigger amount. Over the last five years, for me it has far exceeded any savings ISA.

@mattcameron9349 7 месяцев назад

I must have amazing luck. For the last 8 months I'm averaging £100 a month return on £31k in Premium Bonds!

@TheCompoundingInvestor Год назад

Nice video. Managed to win £500 this month. I use premium bonds as my emergency fund so I hopefully never need to sell my shares and can allow them to compound over time

@katem6562 Год назад

Same here. It’s not worth losing the compound interest overtime. Plus the wins are tax free!

@simonleib1992 Год назад

Same for me.

@patmartin9727 11 месяцев назад

Same here I pay in my emergency fund top up and my sinking funds top up every month. Overall I feel I have done well with the winnings I have received. I have also managed to not need to draw anything out of them. I have also reinvested all my winnings.

@lharris828 6 месяцев назад

We've had poor returns for a long time. They put the rates up and we both won zero. Statistically extremely unlikely - but that's what happened. We are considering cashing in because of the very poor returns.

@pmw3839 6 месяцев назад

Good idea.

@Youtube_deleted_my_favourites 5 месяцев назад

Where I do save is by not playing the stupid lottery each week. Still got the dream of a big win but without wasting any money

@willewinky Год назад

I've had £3k in bonds over this last year and won nothing.

@anthony1636 2 месяца назад

I have had premium bonds for the last 15 years. And put alongside my other investments, they have proven to be a good investment. The main thing being all winnings are tax free. Unlike my shares that do grow but are liable for Tax on any profits. Plus they can and do go down in value, as well as going up in value. I do have investments in ISA shares that are tax free on any rise in investment values. But unless anything changes. I will continue to invest in Premium Bonds, as a good investment.

@user-tr3do5xw9s 4 месяца назад

I have a few thousand short of the maximum and in the last 2 years I have had good luck and won £5,000 that is not one win just a win nearly every month from £25 to £775 so I am happy.

@Youtube_deleted_my_favourites 5 месяцев назад

Been tracking our full amounts for a good few years. Whilst interest rates had bottomed out it was OK, now we are feeding money from the bonds into 5% tax free isa's

@bill-2018 3 месяца назад

Median rate so I got 3.5% last year and not the maximum holding. £200 in March and £50 in January so off to a good start. I can't complain and luck does appear to play a part.

@squibys2262 Год назад

2 rate rises in about 2 weeks means they must have had a mass outflow recently. Also the odds have actually changed this time compared to the last 10 or something increases. Too little to late now, if youve pulled your money out then theres a months wait with no returns. I think it was deliberate to encourage withdrawals back into other banking institutions and not government backed.

@TheRetirementCafe Год назад

What's the highest amount you've won by putting your money in Premium Bonds?

@minuteman4394 Год назад

Zero

@r1273m 11 месяцев назад

£150 last month. (1 x £100. 2 x £25) Coventry BS emailed me today to say ISA up to 4.35% from 14/08/23. Tax free also.

@graceonline320 10 месяцев назад

£300 in one month despite having £50K.

@catherine4339 9 месяцев назад

£100 this month, but I’ve won every year since starting them in 2019 and I don’t have the maximum amount in. 🎉

@TheRetirementCafe 8 месяцев назад

The UK Government NS&I is a government bank that offers savings and investment products to the public. It's the only bank in the country that's backed by a government department, the HM Treasury.@@thetruth9210

@LS-id5hc 10 месяцев назад

£1000 highest win, but almost held them for 28 years.😢

@petercdowney 9 месяцев назад

My great-great aunt, who died in 2011, bought me a premium bond once, but I didn't win any prizes until more than a decade after her death.

@pmw3839 6 месяцев назад

She bought you one premium bond?

@lharris828 6 месяцев назад

What, a whole bond? Luxury. In my day you could only borrow one..... 😂

@bricktop7803 6 месяцев назад

Premium bonds, you are NOT guaranteed anything, but at 50K you should be winning at least 3.3%, that is the median income from 50K. But if you have a few thousand, you have less chance of winning anything. At least its not like the national lottery - you have no chance. With Premium Bonds you can get your money back. Premium bonds are a free lottery that you get your stake back.

@gordonhickson7524 10 месяцев назад

Had money in for over 30 yrs not had must out

@gummer4england 2 месяца назад

I had 35k in bonds for 12month, total winnings was £25!!! that was it lol complete waste of a years savings, safe to say i removed the lot and went elsewhere 🙌🙌

@19grand 8 месяцев назад

Had the full amount for a year. Never again.

@OH2023-cj9if 2 месяца назад

I've never won more than £200/month since November. Newer bonds have more chance of winning than old ones, so keep cashing in old ones to buy new ones. It's not random. I stash money because of hmrc.

@marcusprice3199 Месяц назад

Newer bonds do not have a higher chance. The reason that more newer bonds win is because there are more newer bonds.

@cashyf_88 Месяц назад

Is there any point in putting just 100 in , what's the chances of getting a good win off it has anyone put low cash in and got big money from that ??

@simonleib1992 Год назад

To date highest is £100

@Mike-hg1fn Год назад

As prizes may increase so do tickets sold, currently 120 billion. They should have 2 £500,000 prizes also. What scares me is that it is government run.

@user-lr9iv2xg6s 5 месяцев назад

6% over the last 12 months.

@OH2023-cj9if 2 месяца назад

Winnings are tax free, I have won £700 since November, this goes in to savings and in to general investment accounts.

@fenradast3577 3 месяца назад

51 years and 1 minimum win. !!!!!!

@superduperawesome6858 6 месяцев назад

Don’t think they use ERNIE anymore 😳

@bill-2018 3 месяца назад

ERNIE machine number 5 I believe.

@marcse7en 3 месяца назад

You CANNOT "buy a £1 Premium Bond!" I won in November, December, January, and March.

@despoticmusic Месяц назад

I have a £1 bond - from 1965. Hasn’t won a penny…

@marcse7en Месяц назад

@@despoticmusic Currently, the minimum investment is £25.00. I've held Premium Bonds since 06 August 1964, but only £3.00 until the mid 90's, when I started buying them myself. The 60's bond won nothing in 30+ years, and was cashed in.

@studiosys 6 месяцев назад

These days theyre rubbish , for me 2.5 % tops in last 12months, this plug is def a response to the flood of money pouring out of NSI right now , you wonder why they play thier casino like this ?

@Ground53 10 месяцев назад

Can you imagine if your bank told you that your interest is only paid if you won it in a raffle?

@Manc-fh5we 8 месяцев назад

They're a great way to put some of a pension lump sum to keep the tax man away from any winnings you may generate.

@robertstallard7836 6 месяцев назад

However, in a raffle (or the National Lottery), you only get one go for your £1, then its gone. At least with Premium Bonds your £1 gives you a go every month and you can take your £1 back at any time. I think its better compared to a lottery than a savings account.