Premium Bonds Highest in 15 Years, Worth It Now?

NS&I Premium Bonds have increased their prize rate to 3.7% from 3.3%, making it the Highest in 15 Years, But is it work it now, or should you just put your money into a savings amount which would guarantee you more money.

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[Zero-Investing]

Do you buy gold? I was thinking about investing in some gold instead of all stocks and shares.

[roberthuntley]

Assume that we can look forward to another increase when the recent Bank of England rate filters through.

[garyvarty]

You seem a very lucky guy and you may become very successful in also believe in luck and I am definitely gong to invest in premium bonds although I have no desire to win a million or even a quarter of a million if I did however I would like to feel I would help others

[desperatelyseekingfi]

You really are getting loads of content out there. Nice one

[carlenecayhill]

Great winnings so far Jubair....the big million prize could be next 😊

[davidhiggins]

Now from August 2023 just announced on 30th June by NS&I it will go up to a claimed 4.0%.
But let us look at it, even with the full £50, 000 invested the chances of winning anything >>other<< than the £25, £50 and £100 prizes even in a full year of 12 monthly draws is remote.
Even the next one up, the £500 prize, with average luck and the full £50k invested I calculated recently is likely to be won about every 5 years or so.
A £1000 prize in about every 15 years and a £5, 000 prize every 150 years. A £10, 000 prize every 250 years and so on. Maybe a bit better from August onwards, but not a great deal.

When anyone looks at it all financially and not being so romantically sucked in to it all with these bogus 4% promoted return on investment figures, they soon see that, yes it is a great bit of fun, adding hope in to peoples lives.
But for many of the existing bond holders, especially those with lesser amounts invested, one of these regular saver accounts such as the YBS where up to £500 can be deposited every month for a year, theirs is giving starting 2 weeks time a nice juicy 6%. Up from 5.5%. (Bang the max in for the first 6 months or so then best to taper it off towards the end).

Yes we see folks can and do win these nice £25k, £50k, £100k and £1m prizes but a flutter on the Lotto after it has surpassed £8m jackpot and the Euro lottery when that is £80m+ jackpot is for many folk as much fun and all the paid for hope they may need in their life. WITHOUT the disappointment.
Because as much as they may well want to win the lottery jackpot they don't expect to.

Whereas even with the £50k premium bond rollers, getting a dry month with NO WIN at all not even a £25 prize is VERY DISAPPOINTING. Many do now and again in a year.
£50, 000 invested and getting no return is a miserable full month to endure for some when they may calculate that £50k invested in say Coventry Building Society's latest one year (and a bit) fixed rate bond at 5.9% would give just over £245 a month.
And they got nothing!!, or even just a crummy £25 prize or maybe lucked out winning a £50 prize when both the £50 prize and £100 prize have the same equal chance of being won.

Even the £50k holders don't win every month let alone those with even a few thousand pounds.
DISAPPOINTMENT month after month hanging on for even 1 win, these few thousand pound bond holders, even hoping for the £25 prize, but even if they did win these lesser prizes it would never replace all that constant previous disappointment. Why put yourself through that?.
Realistically it is for dreamers, the romantic, the desperate, for the better healed types already maxed out on tax free ISA's, and for the lucky few. It is for many types, and good luck to them.

The bigger prizes realistically are too out of reach, the realists realise that either beforehand or eventually if they had invested quite an amount and for many of those they restrict themselves to up to about £100 or so.
Just as a paid for long term hope.

Hope is a big thing in our lives, investing say £100 and effectively losing every year whatever the inflation rate is and of cause added to that what that £100 would have paid at say 5% at the moment, then in real terms is about a £15 loss per year. (of cause being long term compounded!).
Though these £100 investors would have 12 goes every year, so initially effectively paying about £1.25 a month for a bit of fun with a bit of hope thrown in.
What I would say is VFM hope.

A bit of hope is better than none at all, it all depends how much hope folks want in their lives and on what and how much money they want to spend on it. And of cause paying for some fun, something else we need. Decisions we have in our lives.

[rm]

Your prizes actually totted up to £200, not £175 as you stated. (£50 + £25 +£100 + £0 + £25 + £0). I have some Premium bonds and they do OK. However, Coventry BS emailed me this week to say my Cash ISA has gone up to 4.35%. That is of course Tax Free!

[alexanderfinch]

It is a shame you cannot just open an account fully online. Been dealing with post to recover account and new get my NS&I number.

[swiftygibson]

I've won a total of £1225 in just under four year's. Its not terrible but certainly better alternatives around

[macsidia]

And now it's 4% and 22, 000 to 1.