Premium Bonds after a year: Were they worth it?

I've had £10,000 saved in Premium Bonds for 12 months, so it's time to see how well they did.

Did I win big? Did I win anything at all? And would I have been better keeping the cash in an easy access savings account?

W A T C H N E X T

Premium Bonds vs Savings

Best savings for 2022

#PremiumBonds #Savings #InterestRates

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A B O U T A N D Y

DISCLAIMER
Content in these videos does not constitute regulated financial advice. Any offers mentioned were correct at the time of filming.

[terryterryd]

Just want the result? - Starts at 5:50

[Lungdog]

The biggest advantage I see to Premium Bonds, is that it puts your money "Just" out of spending range. If you need the money back you can get it quickly, but its far enough away that your not to tempted to spend it. Plus you can also win prizes.

[CookieTheHaydens]

Don't forget that as interest rates rise and fall so do the premium bond 'interest rates' which means your odds of winning something changes too. Ive had my bonds for a couple of years, i noticed a big drop off in winnings when they reduced the rate around a year ago and the odds changed. So if you start seeing savings accounts increase then chances are the base rate has increased and premium bond rates may well increase too. Cheers for the video.

[patmartin]

I too decided to give premium bonds a go over the summer so I too have held £10K and so far I wave won 2x£25 and 1x100 so I am well pleased. Let’s hope my luck continues.

[TheCompoundingInvestor]

Nice video. I have the full amount and my average return is 1.18% per year

[n.h]

Premium bonds are a decent option to keep easily accessible funds but a stock & shares ISA diversirly invested in products such as index funds is much better for long term growth.

[barneybiggles]

I have had maximum holdings for years; get an average return of 2.5% ; less than inflation but better that easy access interest, with the slim chance of winning a big prize.

[iainhunneybell]

I track both my and my wife’s Premium Bonds and have done over a number of years. Usually sits at about the 1.40 to 1.41% return _and_ there’s a chance of winning something big. Not a big chance, but a bigger chance than in the bank 🙂

[glengarry]

I’m all here for premium bonds. I won 5x25 in 2021 and 1x25 today so far for 2022! I’m thinking about pulling a chunk out and reinvesting for fresher odds lol

[beckyharding]

We'd just started discussing whether this was a good place to put our emergency fund (only currently getting 0.6%) so interesting to hear your take on them.

[tectorama]

My wife and I both have the full amount allowed £50k one of us will win something most months.
They are drawn on the second working day each month, and is something to look forward to.
Another reasonably investment worth looking at are the Government Bonds. You can't touch the money
for three years once invested, but it does give a fair rate of interest.

[traceywalmsley]

Andy please could you help me with this previous question ...
Hi Andy, new to all this, please could you give me a little advice. I have a basic current account ( halifax) for my day to day withdrawing money etc. Fancy trying this so which new current account should I open first to get the ball rolling, also then do I open 2 direct debits
( thinking of charity bank and ecology building society) as I do not pay any bills by direct debit .then am I right I then set up a switching account and I move this new current account to the new deal, once that has paid out the moving fee I move that account to another new one or am I suppose to have a few 'starter accounts' I noticed a TSB account needed to use debit card 30 times in the month. Is this for say food shopping ( would there be a minimum amount each time or could I just spend £1 each time.
... Also is it worth changing my halifax to the next level up where I have to have £5000 in to get £5 a month back (or is it only £2 a month back). Thanks for your help. ( sorry for all the questions)

[qwerty]

Hi, in your opnion - what would you recommend if the sum being invested around 70k? (I cant put it into land/property/assets as i need access to it immediatley when the time comes)

[mjc]

My grandmother bought me premium bonds when I was a baby now 68 YRS LATER I havn't won a penny. £500 in 1955 was quite a sum .If I cash them in I get £500 in 2023 is worth NOTHING. A very bad investment indeed

[KushTubeUK]

Can you explain Holding vs Bond Value? When I am looking at the table of winners, there are these 2 columns and I cannot understand what each is for.

[paulperrin]

The best savings account I’ve got. My winnings, which I re invest out performs any of my other savings accounts I have. Only £25 winnings each time but seem to win more times a year than not. 7 lots of £25 last year.

[MatthewMills.]

The largest single prize I’ve won is £100 and the most in one month is 6 x £25 bonds. I’ve been invested for just over a year and have only failed to win twice.

[TheSkauskas]

It’s also worth mention that the easy access interest rate may attract tax, whereas the premium bond win won’t.

[OW...]

Andy, i have some inheritance coming in. Are premium bonds the best option ? I am retired, i do not want to risk, stocks or precious metals. Your point about easy access savings is what i have found. I checked with my bank, and on the QT, the bank advisor actually put me onto PB, which is how i came to your channel. The amount will be around £30k, should i invest all of that on PB, is there any risk ?

[solar]

Bought Premium Bonds years ago as a pie in the sky venture as the interest rate from the banks was a joke!
Used to get regular wins, but once they halved the payout amount they gradually dropped and with the current situation in the UK they have virtually stopped. Not what they used to be and with the current situation in the world I would spend and enjoy your money.