Fisherman Mike Posted February 4, 2014 Report Share Posted February 4, 2014 I know the value of holding is proportional to the chance of winning a big prize...but there never seems to be any winners of larger prizes of people who hold just a few pounds worth and there must be millions of them out there...I would have thought every child born in the 50's and 60.s would have at least one bond . !!! Something not quite right with this. Is this just a outdated con trick. http://uk.finance.yahoo.com/news/premium-bonds-winners-in-february-131730817.html Quote Link to comment Share on other sites More sharing options...
dougall Posted February 4, 2014 Report Share Posted February 4, 2014 er..no it is'nt. rate is on a par with net interest if you hold a good amount,max £30,000 you get 1 win per month.Sure it is an odds game,but more fun than leaving it in the bank where we all know what the banks pay us and do with it!!! Quote Link to comment Share on other sites More sharing options...
wymberley Posted February 4, 2014 Report Share Posted February 4, 2014 Yep, called a lottery. Quote Link to comment Share on other sites More sharing options...
keg Posted February 4, 2014 Report Share Posted February 4, 2014 No, but the chances of winning are like any other lottery.... Quote Link to comment Share on other sites More sharing options...
Cranfield Posted February 4, 2014 Report Share Posted February 4, 2014 I have held Premium Bonds for many years, going back to the '60s, in varying quantities. As a no risk place to put money, with the incentive of winning cash prizes, I can't think of a better option. I kept a record of a couple of years in the '90's and I believe the cash prizes were 6 - 8% of the capital invested , which then was not a bad return. My only criticism of Premium Bonds is that the lowest amount you can buy is £100, which puts them a bit above the Birthday/Christmas present level to give to children. Unlike a lottery, you don't lose your investment. Quote Link to comment Share on other sites More sharing options...
aris Posted February 4, 2014 Report Share Posted February 4, 2014 Yes, but with a lottery you don't get your stake back. Quote Link to comment Share on other sites More sharing options...
Teal Posted February 4, 2014 Report Share Posted February 4, 2014 It's also tax free, which improves the headline rate when compared to a savings account which quotes the gross rate of interest Quote Link to comment Share on other sites More sharing options...
aris Posted February 4, 2014 Report Share Posted February 4, 2014 (edited) Saying that - I've had a small quantity of them for about 10 years - and i've won absolutely nothing. Looking at that list posted, someone in HERTS bought some in Oct-13 and won a million quid. Not fair! Edited February 4, 2014 by aris Quote Link to comment Share on other sites More sharing options...
FatFreddysCat Posted February 4, 2014 Report Share Posted February 4, 2014 Current interest rate is 1.3%, so better than a savings account, and winnings are tax free. Odds of a win in any particular draw are 26,000 to 1. So if you hold the max 30,000 you ought to get a prize every month plus always the chance of a big one. Quote Link to comment Share on other sites More sharing options...
aris Posted February 4, 2014 Report Share Posted February 4, 2014 Looking at the winners, the vast majority of people have the maximum invested - or close to it. Quote Link to comment Share on other sites More sharing options...
Penelope Posted February 4, 2014 Report Share Posted February 4, 2014 I had £30,000 in Premium bonds for 7 years until I used it as a house deposit in 2009. I won quite a few times, but never more than £500 (once) but regularly got £25 - £50 or multiples off. Quote Link to comment Share on other sites More sharing options...
DSPUK Posted February 4, 2014 Report Share Posted February 4, 2014 I had £50 with one bond bought in 1959. - if you look down list of winners online you will see there are people winning with less the £100 worth - you will also see majority of winners all live in Tower bloody Hamlets and SE. Dave Quote Link to comment Share on other sites More sharing options...
old rooster Posted February 4, 2014 Report Share Posted February 4, 2014 I've stuck a few away as part of my overall savings plan, got a cheque just the other day for £25, never had a big payout, the prizes were reduced quite significantly a year or so back. Quote Link to comment Share on other sites More sharing options...
Chris Bb Posted February 4, 2014 Report Share Posted February 4, 2014 We held the maximum for a few years until the money was re-invested. Most months there was a cheque in the post and the return overall was slightly less than that paid by an on-line instant access higher interest account that was available at that time (even allowing for tax free status). Having said that, there was always the chance of "the big one". At the same time, our daughter had £500 in and only won once. But it was £100! It is generally acknowledged that holding the maximum and selling/re-buying on a regular basis does seem to increase the odds, even though it shouldn't. Quote Link to comment Share on other sites More sharing options...
Blackpowder Posted February 4, 2014 Report Share Posted February 4, 2014 I bought three when they first came out and never seen a win on them. Held a block of £3000 for five years and had on average two £25 per year. Blackpowder Quote Link to comment Share on other sites More sharing options...
Lord Geordie Posted February 4, 2014 Report Share Posted February 4, 2014 (edited) I was over the moon reading the winners page a while back! Someone had a small amount bought in the 60s IIRC between £1 - £5 and took the top prize! I felt VERY happy for her! She probably forgot she even HAD the darn thing! Bet she got a very nice shock when she found out. Edited February 4, 2014 by Lord Geordie Quote Link to comment Share on other sites More sharing options...
yod dropper Posted February 4, 2014 Report Share Posted February 4, 2014 (edited) There are wins for those with small amounts, more than you might think for. On old friend of mine scooped a big prize in the early 70s on a tiny holding and it paid for his private education. However, it all works out according to the laws of statistics. http://www.nsandi.com/about-nsi-regulations-policies-and-procedures-freedom-information-detailed-premium-bond-statistics Nine times more people have less than £5k than over, but this group is 9 times less likely to win as they hold less than 10% of the total bonds. A £100 win on a £100 holding is the equivalent to over 70 years of expected 'prizes' at the current rate of return. Edited February 4, 2014 by yod dropper Quote Link to comment Share on other sites More sharing options...
Del T Posted February 4, 2014 Report Share Posted February 4, 2014 I had quite a bit in it and used to win every other month. Normally just 25 pounds,nothing big though. Then all the wins stopped,I was lucky to get one a year so decided to pull most of the money out. Think I just have 3k left in but I will be pulling that out soon. Quote Link to comment Share on other sites More sharing options...
old rooster Posted February 4, 2014 Report Share Posted February 4, 2014 I was over the moon reading the winners page a while back! Someone had a small amount bought in the 60s IIRC between £1 - £5 and took the top prize! I felt VERY happy for her! She probably forgot she even HAD the darn thing! Bet she got a very nice shock when she found out. Probably be quite surprised at the number of people who have forgotten they had the bonds, particularly in small quantities, who never advise their new address when they move house! Quote Link to comment Share on other sites More sharing options...
bullet boy Posted February 4, 2014 Report Share Posted February 4, 2014 I've had Premium Bonds for 45 years now and none of my numbers have come up. :( Quote Link to comment Share on other sites More sharing options...
shaun4860 Posted February 4, 2014 Report Share Posted February 4, 2014 So do you have to claim or do they let you know you have won? Quote Link to comment Share on other sites More sharing options...
Lord Geordie Posted February 4, 2014 Report Share Posted February 4, 2014 So do you have to claim or do they let you know you have won? Allegedly they inform YOU! But as said previously, many move house without informing or updating NS&I of their new address! Quote Link to comment Share on other sites More sharing options...
humperdingle Posted February 4, 2014 Report Share Posted February 4, 2014 I've just organised a £25k investment for my mum after she sold her house... Odds of 26,000 to 1 of winning a prize. Not great, but there's always a chance she might get one of the bigger prizes. You can nominate a bank account and any prizes get paid automatically. You also choose whether to be informed by letter or by email. Alternatively, the old cheque. She wanted the money somewhere reasonably easy to get at, but which might prove 'interesting' Quote Link to comment Share on other sites More sharing options...
88b Posted February 4, 2014 Report Share Posted February 4, 2014 As Chris B said you need to cash them in and get new ones about every two years , statistically every bond should have the same chance of winning ,but it seems new ones do better. We bough £10k worth in Nov and so far had two £25 wins and a £100. Quote Link to comment Share on other sites More sharing options...
steve_b_wales Posted February 4, 2014 Report Share Posted February 4, 2014 My great grandmother bought me £20 worth of premium bonds when I was two years old (a few years ago!) and I've never won anything. But, I bought £200 worth between my daughter and myself, 20 years ago, and had a small win a year after they were bought. Quote Link to comment Share on other sites More sharing options...
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