What £50000 In Premium Bonds Pays Me

I have been saving in premium bonds since 2016 and have slowly built up my holding to the maximum allowed of £50000 pounds. In this video I discuss the history of premium bonds, how they work, why I hold them and finally I reveal my entire winnings since I started where I discuss what £50000 in premium pays me.
Saving in premium bonds allows to put aside a reserve of cash for emergencies. I also have a National Savings account with reserve funds to capitalise on market corrections. I can free up funds and buy quality dividend stocks at bargain prices. When the market is booming on the other hand I still invest regularly but will moderate the amount I invest.

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Disclaimer
The information presented on this channel and in these videos is for entertainment purposes only and is not financial advice. The price of shares can go down and well as up. Investing in shares is not appropriate for everyone so please do your own research.

[TheCompoundingInvestor]

Do you hold premium bonds? What do you think of them?

[RoadRunnerMeep]

What I like the most about premium bonds is essentially it's free lottery tickets just for leaving your money sitting inside the account, and if you ever need money it's still there.

[aries]

I have £7 in premium bonds, bought in 1962. I was disappointed not to have won anything over the years, but now (from your explanation) I can see why. Now, if I'd bought two gold sovereigns with my £7 back then, I could sell them today for around £800. Oh well....

[Crypto-be]

I’ve invested £48k in premium bonds and have only been in 4 draws since January 23. Surprisingly to date I’ve had 13 winners and total to date is £1675……….. long may it continue 👍

[meglomania]

Ive had them for about 25 years. I won £250 the first month. With £3000 worth, but the interest rate was higher then, with £50, min prize. Since then Ive bought more and now have the maximum amount. In May I won £10000, holding £40000 worth. Normally Id probably win less than1% a year. That bigger prize win has made having them worthwhile.

[RobCLynch]

For those wondering about the chances of winning prizes, the odds of winning are 20, 000 to 1. Therefore, if you owned 20k of premium bonds, you should expect to win one prize per month.

[ravsingh]

I have always heard of premium bonds but never really looked into it. Thanks for a great breakdown.

[DianneSullivan]

A very clear explanation - thanks. My husband and I both have the maximum amount in premium bonds that we treat as our emergency cash fund. He's way luckier with prizes than I am so overall we are getting around the rate of return expected - even if it is a little irritating that he gloats every month! 🙂

[julianday]

My dad bought me 10 bonds in 1970 when I was 18. Needless to say they have never come up.
Money as they say, makes money. You need to invest big style in order to get a return, small numbers are a waste of time.

[elphabama]

Thanks for the video mate i really enjoyed watching it.I used to have premium bonds back in the day when the minimum prize was £50 and there were many more prizes available, during those days the reward was far greater including 2 1millon pound draws per month.
Don`t forget you are lending the government money at a very cheap rate if you have premium bonds.
If you buys shares in a company that pays a good dividend you will get a much better return.

[catherineramsay]

I started buying in July 20 and am building up to the max (not there yet). My own strategy/theory is to buy some every month (even a small amount) to keep it active and seems to work for me as I have had 46 prizes in the 40 months of starting. Some months nothing but like this month, had 4 prizes. This year I have won exactly £1, 000 more than last year.

[fruitychink]

I hold premium bonds within my portfolio of equity and gold . They are not only a bit of fun but the return is good . I do believe that there is an argument for more smaller prizes .

[laurieharper]

I have the maximum. Like some other commenters, I bought a consecutive run last year with part of an inheritance. I've had them for around 7 months and have won £350. So it looks as if I am below the average. As interest rates are nothing to write home about at present, I'll give them a while longer. I'm in the process of buying a property at present, so having ready cash in a safe place suits me in case I need it quickly and there's always a chance, albeit slim, that one of them might come up. Fingers crossed..

[keshatton]

I hold the max of £50K, i used an inheritance so have a complete run of consecutive numbers. (but its random so no advantage). As i had no debt, no mortgage i felt it was the right place. We no longer do the lottery so instead divert the £40 spend into a fund which we then use for my wife to build up her bonds stash. I have won just over £1, 000 in 2 years so well above any savings account return. My best win was 6 lots of £25 in one month. We love them.

[bobdylan]

I have the max amount and my rolling, 12 month, return is around 2%, which is currently more than the best 1 year savings account.

[brynleytalbot]

The larger your holding as one entity the more scope you have for a win. Multiple wins are possible but only when you hold tens of thousands. Scan the winners each month for the big prizes and it’s dominated by big holders. It’s a gamble where you retain your bet. With interest rates at such low levels it’s not much of a loss if you don’t win.

[markbishop]

In case this hasn't been said yet, these investments are not only safe and tax free!

[FinanceDee]

Really great video, so well explained!

[andrewtitcombe]

With interest rates so low and inflation so high. It seems better to just spend it on something that can be used to earn more money. Using ones skills to use item makes the best return.

[robertstallard]

I've had a mixed bag over the years:
2017 (holding of about 30, 000) - £250
2018 (holding of 50, 000) - £500
2019 (holding varying between 30, 000 - 50, 000) - £350
2020 (holding of 50, 000) - £525
2021 (holding of 50, 000) - £325
All prizes were £25; nothing bigger so far.