PREMIUM BONDS: £50k, 3 people, 1 year - WHO WILL WIN?

Even though there's no guarantee in what you could win with Premium Bonds (if anything), people hope they might get lucky and net big prizes.

To get an idea of how that might pan out, Andy asked three people with the maximum £50,000 saved what they won in a year. Though your own situation will differ, it's a great way to understand how they work.

W A T C H N E X T

New ISA rules explained

READ THE ARTICLE

#premiumbonds #saving #moneysaving

TIMESTAMPS

00:00 How much could you win with Premium Bonds?
02:27 Saver one's results
03:26 Saver two's results
04:48 Saver three's results
06:50 How they compare to average prize draw rate
08:05 Premium Bonds vs savings
08:55 How your tax bracket affects your returns
10:39 How Premium Bonds compare to ISAs and easy access
12:47 Are Premium Bonds worth it if you don't have £50K to invest?

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(You'll also get a free Quidco bonus for signing up)

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.

[psprog]

My sister started Premium Bonds a year ago with £10k and within 6 months she'd won a £5k prize, as well as a few small ones. So, luck of the draw but it's worked for her and I'm a tad jealous;)

[TheCompoundingInvestor]

Thanks for sharing those results. Very interesting. I also share my premium bond results month by month. For the months you mentioned Jun 23 to May 24 the total was £2, 700. Keep up the good work Andy.

[GG]

It's the most frustrating 'investment'. My holding - £50k, my girlfriend - £30k, her mother - £10k. May's winnings, me - £100, girlfriend- £475, her mother - £1000. 😂

[Asif]

I’ve got the full £50k. Last 6 months I’ve received
Dec: £100
Jan: £225
Feb: £325
Mar: £50
Apr: £100

£700 in 6 months. Bearing in mind I max my savings allowance already.

[cleaky]

I put 20k in a year ago I've reinvested my winnings. I made £1075 over 11 months and this months draw I had 3 wins £50, £100 & £1000. In a year I've made £2225. premium bond calculator: £750 with average luck, I've been extremely lucky beating that. I've had 1 or 2 months where I didn't win anything

[CharlesRWJones]

Great video. Love PB's. The thrill of seeing if you've won every month. Had my best month this month, with a single £500 win. I put all my wins into my ISA. It'll interesting to see how we get on.

[rebeccalloyd]

Makes it useful that u don’t need to worry about paying any tax

[rhinoboy]

It’s worth noting that eventually chance becomes certainty given a large enough timescale, even winning the million would become fact, though you may have to hold the bonds for a few thousand years.

As you hold bonds for longer and longer you will find overall your money earned will come close to the average return. Some years up some down, you might even have a bad run for a few years and a good run for some more but over decades it will get close to average. That said the average is dependant on having a lot of bonds, and if you’re holding premium bonds for a long term investment there are other areas that will get you a much better return.

[Cat]

At 28 years of age and being an in theory “additional rate tax payer”, I put a significant amount to pension (10-25% in personal contributions, and then employer match on top) - especially now lifetime allowance has been lifted.
This allows me to bring down my taxable income into effectively being classed as a higher rate tax payer.

Personal savings allowance is maxed out by my emergency fund/additional savings sitting in 5% interest paying savings account and ISA allowance is maxed out in S&S for hopefully an earlier retirement !

I have parked my house deposit (£50k) in the premium bonds because (a) i thought I’d likely come out on top, when considering tax which would have otherwise been payable and (b) I like the security, as I’d be looking to buy in the next year.

In the last 7 draws, I’ve won a combined total of: £1, 075. I’ve never not won anything, but have had a couple of months of £50 wins and the highest win I’ve had has been £400.

[Gazmaz]

I have been getting some awful results and have moved the majority of the money into savings. My avg was around 2%. My philosophy is if saving rates are low, then premium bonds give you the chance of some big wins, so why not, but is saving rates are higher then make your money work for you.

[sireeze]

Hi put £40k in June last year & another £5k in at the end of march. I've won most months (£3, 250)

[angiej]

Thanks for doing the maths, Andy. Figured I was about breaking even but it seems I'm a little up so far. 7 draws = £2425 @ £50k = 4.9% (I'm a 20% tax payer)
I enjoy the thrill of opening the NS&I app every month!!

[casiowatchers]

We love PBs and the 4 of us in our household have them. Enjoy tracking the wins and sharing updates with family and friends who also hold PBs. We’re under no illusion that’s it’s all down to luck and we accept the fact that we lose out on guaranteed interest elsewhere to play each month. Last year (my first full year) I received 5.6% prize return on my holding so I was happy with that. Here’s hoping I beat that this year…
I will add that due to how we prioritise our finances we’d never fill an ISA in a year, so we add what we can to PBs in the hope of beating a basic ISA rate. We can also get to that money if we need it, of course.

[cantbendknee]

I have an ISA, rainy day saver, prize bonds, premium bonds, I play thunder ball and hot picks, charity lotto and postcode lottery. For me it’s about having as many irons in the fire as possible. Likely will stop postcode lotto at end of year as it is £12

[HaniGirgis]

I love PBs! My avg. return since I started 6 months ago is 10% which is great! Keep posting their results, love your content btw.

[gerardowen]

It’s a gamble that you don’t lose your money with better odds than the lottery.

[mattsennett]

£1, 500 for me across the year in question with the full holding. I have never won more than £250 in one month so hope to break that come the June draw 🤞🏻

[lm]

Thank you, do you have anything on pension savings specially for nhs and private

[Joe-lbqn]

A histogram / bar chart of those results would make the differences easy to see. Maybe next month? My £50k investment was rubbish last year, only partially redeemed by one good (£825) month to 3%. This year Im getting rid as i need the money for some other things. Sold £20k after Jans draw Last entry August then i'll sell the rest. Of course i had my biggest win after i sold nearlly half lol £1100 but only £25 this month.

[Morris-rxsp]

I'm favoured, $22K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America.