What £50,000 In Premium Bonds Paid Me This Year
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- เผยแพร่เมื่อ 16 ธ.ค. 2023
- In this video I discuss what premium bonds are, why I hold them and I also reveal all my prize wins for the whole of 2023.
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Disclaimer
This video should not be construed as investment advice. Investments can fall and rise. Capital at risk.
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Do you own Premium Bonds? How have they performed this year?
I start putting my money in September and I did manage to win 100£ this month 😊
Great start. Good luck with future draws
£1800 from full amount invested, slightly worse than average luck 😄
I think we are averaging about 4 percent return PA, so very satisfied so far. Just pipped a £1000 prize this past month.
Thanks for sharing your results. Good luck for future draws
I invested 50,000 in April hoping I could achieve £1000 total in a year as the bank was not paying any interest. So aiming low so as not to be disappointed but, still would have been 1000 more than if left in the bank. Arrived home after the first draw to find an envelope with Nsi on the front. The letter inside with a long alpha numeric number said it had won £25,000. Logged on to the site thinking it may have been a scam or mistake and I had actually won £25,175 as had three smaller wins too. Since then lowest month zero second highest £575 but, after such a huge first prize I smile regardless of whether I win or not. Extra bonus was after the money was transferred the bank offered me a 4% instant access account so now the bank is paying interest on the money they helped me win by making me transfer it due to not offering any interest initially.
That’s incredible. Well done indeed. According to the probability calculator you would expect a 25k win once every 562 years only! Nice one.
After the win I checked what the odds of winning 25k with 50k investment would be and the odds came back at 1 in 5500 which I cross checked and appeared correct. So as a friend said to me given I was willing to accept 1000 a year I have received 25 years in advance and would not complain if I never won another £1 but, statistically even if my luck were to change to consistently below average I am likely to average at least 1k a year. I am very grateful and aware that most people don't win a prize of 5k or above even over a period of many years.
That’s a great result. I’ve been buying them for around 8 years now. The highest single prize was £500. Hopefully we will have a few more months at the 4.65% rate until presumably they reduce it sometime next year as inflation comes down.
Yes the interest rate certainly helps. Although you have done quite well yourself with most of your monthly totals.
If you would of put it in chip@4.84%
You would be guaranteed over £200pm but you did have a lucky win. So you did the right thing
Used to hold £50000 in Premium Bonds until last year, but never ever actually won to average amount of prize money in 6 years. Had enough of them, took our money out and invested in FTSE Global All Cap. Much better returns. Kicking myself for tying up so much money in PB's for 6 years.
I just see it as a lottery ticket that doesn't run out, you hope to win but not losing the money as such (inflation)
They are tax free though so at moment make more sense if higher rate tax payer with full isa.
Which company did you go through for your FTSE Global All Cap please ?
You were unlucky, my wife achieved 4.9% for the year, she was lucky😃
@@jamesdean2002uk mine is with Vanguard stocks and shares ISA
It's so heart warming to read about people's good fortune with PBs. Back in the 70s, my mother bought me £2 in bonds for one of my birthdays. She was so pleased that she had given me a present which could earn some money for me into the future. How many prizes have I won since then? None.
Thanks for watching and commenting. For £2 invested you are likely to win a prize once every 875 years according to the stats calculator. A chance is better than none. I wish you all the best in future draws.
it's the thought that counts :)
Under £100 and you 'probably' won't win in your lifetime. Even £1,000 is not likely to get you a prize every year. Go big or go home is the way for premium bonds. I had £150 for ten years and didn't win a bean, since putting a few much larger amounts in, I won like 10 times last year (still get a few dry months, but one month got four).
Remember though ……you have to be in it to win it !
You should build your bonds up to £1000 and tell them to automatically reinvest any wins ; automatic reinvesting a win means there is no normal one month wait for the new bonds to be included in the prize draws .
I am almost at my max and i have been winning £25= £250 each month over the last few years and i see this as a safe money earner even with inflation that takes away the “ buying power” ofbthe wins.
And occasionally, a small holding wins a large amount.
As with National Lottery someone wins most weeks, by sheer weight of entry numbers.
I have 31k in and won £1225 last year and have already won £150 in January. If you are the sort of person who only cares about chasing interest % every month then they are probably not for you but I am happy to win over £1200 when I know I have a chance to win a bigger amount if I am lucky enough.
You have done better than me this January. I managed £100 but I’m not complaining as last January it was zero. Good luck with future draws!
Like you I have £50k in bonds and have done so since 2020. Last year, 2023, I won £1975.00 so not a bad return. I’m retired and I keep it there as emergency money and I use my winnings as pocket money. I have two friends who also have £50k invested and we have a monthly competition to see who wins the most, just a bit of fun.
Thanks for sharing your results. I agree when there are several of your friends / family involved it’s even more fun and quite competitive. All the best for future draws
Yes i have them. I seem to be doing slightly better then average. I haven't got as many as you and normally i win the £25. I have won £50 a few times and the £100 which is the maximum i've ever won. I have also won two prizes once both being £25.
Thanks for this excellent guide. I'm currently holding £1100 since June of last year. Won 2 * £25 which works out to be 4.55% (tax free). Had a nice surprise this May as it was the end of my first Premium Bond year, closed out with a final £25. I'll aim to crank up my holdings so that, on average, I can expect £25 per season for next year. It's early days for me but I'm slowly building wealth. As Einstein once quipped, "compound interest is the most powerful force in the universe".
Edit: If I assume the same return then I'd need to hold x / (4.55 / 100) = £2198 (round to £2200) worth of PBs to make £100 next year so will look to double my holdings over the summer.
Nice work indeed. All the best in future draws
As a family we invested a land sale between four of us when limit was 20k each , interest rates were ok at start but declined rapidly .
Took it all out in the end given there were reasonable rates on fixed income in the stock market , if rates fall again as they will , don’t hang on to long to get out.
As an additional rate taxpayer, PB are great for easy-access savings, and as you show, I'd need around 8% returns to match the Tax Free allowance.
You were really lucky!! I only won half your amount with the same odds of winning. The anticipation is what gives me the most fun.
Absolutely agree, it makes saving far more interesting and all tax free as well. All the best for future draws
😃 - another great video in this series, nice year round up... Helped inspire me to keep the emergency fund here which would cover ~2 years.
Great to hear. Thanks so much. good luck with future draws
I used premium bonds as the first step to slowly convince my wife to get into investing. Although its not really investing, its a much easier starting point for people when first getting into personal finance!
Now she's a fully fledged ETF investor with some individual stocks on the side haha
She also continues to be very luck with her premium bonds! Great video as always 😊
Thanks Tom. That’s a great way to show someone how to get into the saving / investing habit and putting their money to work. All the best buddy.
As mentioned before in your previous video my total for 2023 was £1,500 so an unlucky year as I hold the full £50,000. That's £400 from me towards your outperformance 😂
A few more weeks and we have another crack at the big one so good luck in 2024 and Merry Christmas too 🎄👍🏻
Thank you. All the best for the New Year and future premium bond draws.
1800 here and 800 of that was from november so without that a very poor year,some months with nothing. So yes OPs been stealing our money 😂
Similarly I got 1450. I am unsubscribing for a few months in protest.
Thats a great return. I have 40k invested and no wins so far this year.
Love the channel
Thanks Paul. Good luck with future draws
Thanks for another great video and for explaining everything so clearly. Well done on your 2023 wins. 2024 will be the first PB draw I*m part of! Exciting!
Thanks Steve. You might be interested in the free Premium Bond smartphone app which is really useful for tracking draws and prizes. All the best for future draws.
My dad bought me a £1 premium bond when i was born. I am 63 now and i have never won anything. Someone worked out that with a £1 bond i can expect to win something every 4,000 years.
I’ve just looked up the latest probabilities for £1. It’s once every 1,750 years to get at least one prize in a given year. Good luck with future draws. Maybe that big one is just around the corner.
@@TheCompoundingInvestor I'm getting nearer every day 😃
Buy one now and you will win. It's not as random now, newer ones win more often. I get a refund and invest each month to keep winning.
@@OH2023-cj9if Every bond in the draw has the same chance of winning regardless of when it was bought. If you cash in your bonds and reinvest each month then you will never win anything. They have to be held for a full calendar month before they go into the draw.
Done OK with 40k in PB - theres a second case though, that was always part of the incentinve to me having PBs. I can't turn it into guitars or motorbikes on the spot.... So a "Safe" investment!!!!
That's very true, it gives us time to really think about the necessity of various impulsive purchases as it takes a few days to withdraw the cash. Good point. all the best of luck in future draws.
I also had £50,000 in bonds and had 7 months with 0 wins, 4 months with £25 wins and i month with a £500 win: you did very, very well: my £50000 is now invested in an ISA and is doing very well.
I remember going 3 or 4 months with nothing and even considered doing something else with the money. It’s good that your money is now doing well in the ISA.
Yeah, premium bonds are a total waste of time.
They are to stash money once you fill ISAs each year and have to start paying tax on interest in savings accounts.
I have the maximum invested and had £1950 in prizes over the year with no zero months. Biggest win was £500. The wife also invests in this and we really enjoy the reveal every month.
Excellent work! Yes it certainly does raise the spirits as the next draw approaches. All the best of luck for next year.
Why? You get more in a fixed bank account now
@@dobbie563 Premium bonds are tax free which can make a big difference to the net return for some investors. In a bank account some will have to pay 40 or even 45% tax on their interest. They may also have filled their ISA's so for some it makes sense.
Great video Prof. just getting the final bits ready for my time machine
HaHa! go easy on the time machine. essential journeys only as they use so much electricity.
Congratulations on your average-luck smashing year 🍀
I was actually calculating my taxes and if it's worth me putting anything into Premium Bonds yesterday so this is great timing for me. Am I right in thinking in previous videos you've mentioned that the Personal Savings Allowance is being reduced in future? I'm sure I remember that but having a quick scan of your videos and Google searching I can't find any info on this... maybe I'm going crazy. Anyway I think it makes more sense for me to overpay my mortgage instead, but I'd like to be able to confirm that with knowing the future PSA.
Also just a thought, if you do a premium bond focused video in future and you have the data, It would be good to see your historic annual returns as well, see how they balance out.
Have a great Christmas and New Year 🍻
Thanks so much. I don't believe the savings or personal allowances are being reduced, only the dividend allowance and capital gains tax allowances will drop for next year. The data for historical premium bond years would be more difficult to find. I had different amounts saved then and of course the prize rate changes from time to time. Thanks for the suggestion however.
@@TheCompoundingInvestor Ah thank you, I must have got those crossed in my mind. 😁
The thing is , personal allowances are not increasing. It's a really nice stealth tax for HM govt and affects pensioners year on year.
I have the max amount, I’ve won £1,225 in the last 6 months, no zero months. We are always thinking we will cash them in, but we like checking to see if we’ve won each month
Good work! Yes it’s always fun looking forward to the next draw. Can get quite competitive when there are other friends and family involved. Good luck with future draws
They should definitely be at the bottom of the investing list.
Pensions, Lifetime ISAs, Junior SIPPs.
All receive tax relief/government top ups.
Investment bonds, savings accounts, cash ISAs or even paying off your home early all have guaranteed returns which average much higher.
Stocks and shares ISAs have the chance of a much higher average return.
One pound invested in a premium bond and withdrawn 10 years later may have won you nothing. However, you had 120 opportunities to win, and you still own your initial pound, unlike a lottery ticket, which you lost after the first month.
Very true
Inflation? 10 years later your pound will be worth 50p or less!
I don’t have the full amount and have won £425 this year. Great video as always, congratulations on your wins 😊🎉
Thanks so much Catherine. Some nice wins there. All the best of luck for next year!
£550 since December, winning each month. Not the full allowance here either.
I see some people bashing PB, saying you're better off investing elsewhere or even just with savings. It depends on your own circumstances. I don't invest in stocks directly, I only invest via a fund manager as part of pensions. So, for me an important thing to consider is not having all my eggs in one basket, ie. per institution you're only covered up to £85,000. So yes, I might have earnt more elsewhere with that £50,000, but I know that money is safe regardless of what happens. I like to have my savings & investments spread across 6 channels, so that even if the worse were to happen (things are pretty volatile these days), I would have at least £85,000 x 6 left.
Sounds like a sensible plan for security. Thanks so much for watching and commenting .
Well done on your return; hope it continues next year 👍🙏
Thanks so much
Luckier than me. 23 prices £1900 from the full amount with 2 zero months but a bumper £500 one month. Also family full amounts were £1800 and £1875 with both having a zero month. I'm with you this is rainy day money just in case but also not worth bothering unless you have the max.
Ouch, I'm not at half the limit and won only a bit less. Unless someone is putting in at least 4 figures worth, it does seem a waste of time.
£50k invested. My 2023 prizes. Jan £600 (My best month ever), Feb £200, Mar £200, Apr £125, May £0, Jun £150, Jul £25, Aug £200, Sep £100, Oct £400, Nov £200, Dec £50. Total £2250.
Nice work indeed! Thanks for sharing your results. Wishing you the best in future draws!
I like the idea of your Premium Bonds, and do wish we had them over the pond. I have 3 issues with them though:
1. You can't compound (if you have 50k already).
2. You can win 0.
3. You can only have 50k total.
I think more people in the US would save if it had that gambling feel to it....sadly lol.
All good points. Yes it can be very inconsistent. last year I went 3 or 4 months in a row without winning anything.
I have them maxed out and they are UTTER rubbish.
But you don't lose your capital. It can be withdrawn anytime.
@@windsorSJ yeah but you get almost no return compared to an investment of a similar size.
@@jameswilkinson150 the point of the video is that he's using it as an emergency fund to stop the need to withdraw investments, of course investing will return better over long periods of time.
Interesting video. I have 75k in a 2yr fixed rate ISA at 5.8% currently making approx £360 a month. Once that ends, if the rates have dropped again i'm going to stick 50k into PB's for a little diversity, as i haven't dabbled in them for around 10 years.
My main focus of investment these days is compounding/accumulation in stock market funds, but as you say you have the added benefit of the monthly prize draw over other types of savings/investments with PB's.
Sounds like a bad decision 😂
If interest rates drop, so will the PB prize fund
Your interest comparisons omitted the income range that loses your personal allowance, where the effective income tax rate is 60% thus making Premium Bonds a big winner being tax free. It's interesting seeing that your biggest individual prize has been £500, I won £1000 a couple of months ago on £21000 of bonds. I'm well ahead of expected winnings since I started buying 18 months ago.
I won £1,375 in 2023, Highlights of £500 in June and £250 in October but 6 of these months were either £0 or £25. If I got an average return in an savings account I'd get about £1,600. It's the price I paid for the small chance of winning a large prize.
That's a good way of looking at it. Do you have the full amount invested?
Congratulations!
I have £50000 and won £2550 for the year.
Nice work Simon. Good luck with future draws!
The odds against winning any of the higher value prizes is so high that you can forget them. So the actual return that you can expect to get over a long period is only about 80% of the published rate.
81.8%. Yes that’s a fair comment I agree. Thanks for highlighting this. I really don’t see why they need to offer 2 x one million pound prizes.
I have £50 in PBs, literally won £50 on the first draw I was in, and not won again in over 2 years, still I doubled my money 😊
Awesome result. That would occur roughly once every 87 years according to the stats calculator
@@TheCompoundingInvestor wow! Super lucky! Honestly, I just have them to see what happens on the off-chance I could be a millionaire, I'm happy with £50 in PBs 🥰
That’s one of the great thing about premium bonds. It gives us hope at the start of each month!
£26,000 P.B. I won £950 last year so I'm not complaining.
£200 in March this year and £50 in January so off to a good start.
Thanks for sharing your results. All the best in future draws
Interesting and good year. Not had much luck so far but have only this summer increased my holdings significantly.
Thanks for watching and good luck in future draws
Great video! And excellent explanation of how it works.
Thanks so much, I really appreciate it. Glad you found it useful
I am very pleased I put my savings into NSandI.
I have enough there for my funeral.
Fortunately, I have won a lot of prizes, lucky perhaps, but the sums I've received are far better than any bank would have paid me, before tax.
I took out £1,000 for an emergency, a short time ago, but I had already earned that.
I'm very happy with my investment. Not many investments out there are safe and who the hell can anyone trust. Remember that when you see adverts, receive phone calls, or someone comes knocking at your door.
🧐
My wife and I each had 50k in premium bonds up until about year ago, we had below average returns, paid my mortgage off instead saving 85k in interest alone of over the remaining mortgage term, bearing in mind that 85k interest was calculated only while we were on a low fixed rate mortgage and didn't include the additional interest of the new higher rate over the term of 30 years . Having 100k between us sat in the bonds only seemed worth it when ISA rates were rock bottom.
Thanks so much for sharing your journey. Well done on getting rid of the mortgage. Excellent achievement. I did a video on my mortgage paying story if you are interested. I’ll leave a link below. All the best. Thanks for watching and commenting.
Should You Pay Off Your Mortgage or Invest
th-cam.com/video/s-YpNhVsGOk/w-d-xo.html
LOL well you must be very lucky !!! I have had the MAX bonds and in 20 years the biggest single bond has returned me £100 and the best month prizes added together was £250 . You have to be very lucky to make more on £50,000 of bonds than you will invested in other saving acc's even if you have to pay tax
It can vary so much. In 2022 I only won a total of £500 for the entire year. This year is not great either so far. 2023 was pretty exceptional.
Back in the days when the maximum you could hold was £25k things were a lot better and the system could be cheated. Ernie would choose 'random numbers' but the small print stated the maximum number of bonds between any two winning numbers was 25,000, meaning if you held the full £25k and they were bought in a single transaction, giving you sequential bond numbers, you'd be guaranteed a win every month. The smallest win was also £50 back then too.
My best year in the early '00s was £6,550 from a £25k investment.
My grandfather held £2,000 for as many years as I can remember since the 80s. he would win £50 every month, and if he didn't, invariably he would win twice the next month. Incredible luck or was something else going on back then...?
Interesting. I started buying them in July 2015 in blocks of around 2k to 4k. My biggest block was 15k I think. No real strategy to it. When I couldn’t see any bargains in the stockmarket or it was getting a little overheated I put less new money in and bought bonds instead.
@@TheCompoundingInvestor The strategy for NS&I has changed completely since those days so it doesn't matter what you have or how you bought them now. The fact is, as of now, you either need to hold the full £50k or not bother.
For those in the position to be considering investing more, you can buy £50k for yourself and £50k for each of your children. If they're under 16 then they're held until they reach the age, but you can receive the wins, still tax free. When they reach 16 the bonds become theirs, not yours. I don't know how/if you'd ever withdraw from that investment though as you are technically giving them as a gift.
If you're happy to give your kids £50k when they're 16 (or hide the fact from them for a bit longer like I plan to do) then this too is a good option.
Hello and thanks for the video, I loved the prehistoric man and dinosaurs !:)
Hello there Trunky. Hope all is well in France. All the best for the New Year!
All good, thanks very much ! wish you all the best too, see you soon @@TheCompoundingInvestor
Well done looking forward to January the 3rd next draw have the £32,000 in now so hopefully give me some penny's on auto reinvest so looking at getting the max in after 3 years with my standing order thanks again for the video
Thanks Alistair. All the best of luck for next year.
Ive got 40k and won 4k over the last 4 yrs ❤ love them
You love 2.5% apr?
@@kkdercxzsaerr5 Exactly. PBs are nonsense. Better off putting that money into a HYSA or index fund.
This is such a great video, explaining how long ago you would need to buy them made me really laugh
Thanks so much, I really appreciate it. Glad you enjoyed the video
I have put in £100 last september just to test it out, and I won £100 in the next month. Its just a £100 but that feeling lasted a week and totally worth risking it out with more.
That’s a great result with just £100 invested. Should on average take 18 years to win a prize with £100 invested. Awesome work!
I'm considering starting my premium bonds journey next year.
I always look forward to the draw each month. There is a really good smartphone app you can download to keep track of draw dates and winnings. All the best.
Some lucky person in Leeds purchased £100 in Dec 2023 and won £100000 in the March draw! Not bad eh?!
I have 50,000 in mine and I’ve had some decent wins. Managed to get £1750 last year in total. Best win was £300
Nice work. 2022 was not so good for me. £500 for the entire year with the max invested
@@TheCompoundingInvestor between me, my
Mum and my dad we have about £130,000. Surely one of us will get the million one month
@johnyoung5413 I’ve looked up the odds for you. One of you will win the million every 40,000 years
Only had a few since 1975 ,,but won loads 😊 but I'm lucky 🍀
Nice. Good luck in future draws and thanks so much for watching and commenting Shaun.
I hold the full amount and have done quite well by matching at least the Bank Rate in returns, this year I've had several wins in each month. I bought my Bonds in high value blocks which I think helps in getting a win.
Good luck in future draws
The Bank rate? You know if you’d held £50k in the s&p500 10 years ago you’d have £164196 now. Premium bonds are such a waste.
@JD-ny9qj emergency fund kept out of the market for that very reason. Rest of money is in the market including S&P500
Yes but Capital is safe with PB, you could lose 50k with shares. My shares are worth less than when I invested.
Yer, but if you compare it to a lottery - you basically pay £1 for your ticket once, it is entered into a draw every month, and at any point you can redeem the ticket for £1 - so why wouldn’t you
I use wealthyfy but there are other stocks and shares wrappers. 5% every 3/4 months. You can avoid capital gains by having an isa with them too. You just move the stocks and shares over to the isa stocks and shares and draw down from the tax free isa. You never sell the taxable asset.
You cannot transfer non-ISA shares into an ISA. The shares have to be sold and then re-purchased within the ISA. You may be liable to Capital Gains Tax on the sale.
Nonetheless there is a feature that allows transfer between plans up to the ISA limit.
Premium Bonds and ISAs are the answer in my opinion, then all your interest and winnings are TAX FREE!! Yes you can find slightly higher interest rates in savings accounts but by the time you pay the ruddy tax on the interest on it you’re no better off. However for Premium Bonds to really work for you you do need the full 50K or close to it. I have the full wack and average at about £125 / month.
Thanks for watching and all the best for future draws
Good luck only a lucky few get and decent return
This was a really nice video to watch. I bought £100 worth of PBs last month for fun only, I expect nothing from them, but in six years I wish to get the max of whatever is allowed at that time. It's complicated why I have to wait, wish things were different but life is what it is. At least I can watch videos like this until I can join in the fun. 👣
Thanks so much for watching and commenting. I wish you all the best on your journey. Good luck for the draws next year.
What would you recommend - invest first and top-up to NS&I ,go 50/50 or try to max out NS&I first ?
Also, I saw that they offer 100k prizes too and a lot of them, but the calculator you provided does not seem to mention it ?
Really like your content! Keep it up!
Yeah I can definitely see the £100,000 probability on the checker. Just tested to see how long it would take to win that prize with 50k invested. 2,200 years apparently.
The way I built up my premium bond amount was to buy them when I saw no bargains in the stock market. When I felt the market was a bit overheated with news articles saying new records broken etc etc. When the market suffered a sharp drop I’d stop buying bonds and pile into the market instead.
Thank you that is a good advise!@@TheCompoundingInvestor
I think Premium Bonds are utter rubbish. In my family we have 100k in them and we barely get the minimum payments. The chances of winning the jackpot are negligible.
Personally I would have been FAR better off investing the 100k elsewhere.
@@jameswilkinson150Depends on your tax situation. I'm on the edge of loss of personal allowance and my £500 savings allowance is already used. Any further cash interest would be taxed at equivalent to 60%, so instead I hold my emergency fund in premium bonds.
Great review! Would you ever consider money market funds over premium bonds ? I guess you might be too deep in and not want to use up for tax advantage accounts .... ?
Not really looked into them. Are they protected under the FSCS?
@@TheCompoundingInvestor i belive so , as 1 under the vanguard flag. I think it would be offering a better rate of return with even less risk than a bond. Vanguard sterling MMF. could be worth a look for you
How would you suggest this should be balanced with an ISA ie when you have £1000 in bonds how mucu should you have in an Isa and when you have £10000 how much then?
Obviously a matter of personal choice but assuming you are not intending to invest in shares then if it’s a choice between premium bonds and a cash ISA I’d probably put the whole 10k in a cash ISA. With 50k I’d have to compare the prize rate and interest rate to make a decision. The more you have in premium bonds the closer you will get to the 4.65% currently. Not investment advice of course just what I personally would do in my own circumstance. I don’t actually have any ISA allowance left as I have a stocks and shares ISA and I’ve filled the allowance for this year
I've had Premium Bonds since January 1957. They were often bought as gifts for a new baby. Mine have never won so much as a penny. They must probably be some of the oldest PBs in the country. Oh well. Maybe they'll get antique value in time or become ancient relics 🤣
That’s a long time indeed. Good luck in future draws
I have this amount of premium bonds and haven't won nearly this much, you got very lucky
It varies from year to year so much. In 2022 I only £500 for the whole year. 2024 has not been great so far either.
They are a useful safe place (safe trom the tax man) to hold cash once you've used up all of your annual ISA allowance. Winter storage until next April.
Absolutely agree and there is always hope of a big win.
Sold all my DEC shares in the last few days…. Should still get the divs next week but the US government are investigating them which has resulted in a massive drop. Took what was left and bought Diageo shares……
I just calculated my 2023 return from £40,000 premium bonds. I received £1,650 in prizes against an expected return of £1,520 at an average yearly interest of 3.8%, so just a little above expectation.
Nice work. Good luck with future draws and thanks for sharing your results
For UK residents only? I don't think so, as some prizes state for location as overseas.
Wow. You were lucky! I only got £1575 on my £50K in 2023. On the other hand, my mum bought a single £1 bond in 1971, and of course it never won a penny before she died in 2007 - we didn’t bother cashing it in as the stamp to send it to Glasgow would have cost nearly as much as it was worth… it would be nice if NS&I created a scheme so that very small holdings could be donated to charity.
It can vary so much from year to year. In 2022 I only managed £500 for the full year with 50k invested and 2024 has not been great so far either. All the best in future draws
I have £50k invested and for 2023 received £1925 in prizes 3.83%................. pretty average but it is the fun of opening the app on prize draw date............
Thanks for watching and sharing your results. I agree, the 'fun' aspect is a big part of it and the app is very good.
How are the prizes paid and where to? in your example you are on the max of 50k, so I assume the prizes (when won and paid out) are then sent on to another bank of account of your choosing?
If below the 50k you can have prizes automatically buy more bonds if you want. above 50k then the cash goes into a savings account of your choice. I have a Direct Saver account with NS&I so I see everything (bonds and savings) on the same screen and login number and password.
My winnings get paid into my Barclays current account
If you pull them out do you just get £1 per pb back regardless of when they were purchased?
Yep, Each bond will always be worth £1
I had 50k invested for over a year, and won £25. Yeah, a real good investment.
That's incredibly unlucky Harry and statistically you are due an upturn. Do you hold all in one block or many blocks? I have blocks varying in size from £25 to £6500 but only the big blocks have had wins this year so far. Let us know how you get on this month! You're definitely due some luck 🤞
@@marcusprice3199
Hi Marcus,
I was invested for over a year. Couldn’t afford to leave it in much longer. Took the lot out and tied it up at 5% over two years.
Cheers
Cheers for this Vid i put 500 in and got nothing after 3 years i took it out. From watching this i should have put more in giving me a much better chance on winning.
Thanks. I’ve just typed £500 into the odds calculator and it says on average 1 prize every 3 years with that amount. All the best for future draws if you decide to have another go at some point. Thanks for watching and commenting
@@TheCompoundingInvestor Wow maybe i should have left 500 for a few more months. I learnt alot from you thanks.
I have about £30K invested in P. Bonds but that has been built up over quite a number of years, so the deposits are widely scattered - which although statistically shouldn’t make any difference, in reality it seems that it does - I was only receiving £25 prizes intermittently, and from time to time.
I want to withdraw the whole lot and put £50K back in one single deposit, but I have to say that as it’s all done online these days I’m a bit hesitant about committing that whole amount in one go, in case something goes wrong…
It can vary so much. Towards the end of 2022 I went 3 months in a row winning zero with the full amount invested.
I have sent an Email to my MP asking to have the max premium Bond holder amount risen to £100,000 and to £1 million for those who have had at least ten grand in the bonds for at least ten years ! I have not received a reply but asked him to suggest this to the Treasury as it would be a good way to generate a decent Tax free income and keep the source funds in the UK .
It is tome that those who are prudent and careful with their money are given some rewards for preparing their future and not relying on the future Taxpayers to fund their retirement .
The £50,000 max is not enough and i really do think there must be a “ Golden Bond membership” for those who put in and keep in at least £10,000 for ten years by giving them the right to put in £1 million and enjoy the Tax free “ fruits “ of the income generated.
Good luck with that, too many MP's with too many shoo ins to non-executive directorships of the many financial institutions. Remember how high street banks (if you can find one on your high street these days) always bleat when NSANDI issue granny bonds?
Both myself and my partner have 50 K each invested. in 2023 I won £2120 and she won£3050 my best month was £525 hers £600.. In 2022 my £50K investment returned me £225. so it can vary immensely.
Thanks for sharing your results. In 2022 I received a yearly total of £500 with the full amount invested. Very different picture to this year. Good luck with future draws
This is amazing returns, I wish you more winning in 2024 and thanks for sharing
Thanks so much and you are welcome
Nice video 😊
Thanks Paul
These people live in a totally different world to me, the highlight of my year was a £500 cost of living and winter fuel payment, as I'm a pensioner that will be less next year, probably only £150.
God bless you for you are true, most of these are not….
Yes I know how you feel, and it hurts me to know as a full community charge payer pensioner that a good proportion goes towards the private /works pensions of ex government and ex police and ex teachers when non of these high paid pensioners never paid a penny into my non existing private pension.....! I was allways self employed and couldn never put enough away for old age but now have to pay into their lucrative gold plated pensions out of my old age pension??? Stinks.
And that has nothing to do with this video!
@@OH2023-cj9if It has everthing to do with the video but your comment certainly does not,probably one of them i was talking about!
@@OH2023-cj9if what you said has absolutely nothing to do with the video,troll
My wife and I both have the maximum amount in PB’s. We have won about 12 k over the last 3 yrs..
Wow! Great return. All the best in future draws. Thanks for sharing your results
I have the full amount saved and got the first 6 months, I didn't get any prizes. November and December have turned out pretty well though.
I do wonder, perhaps you can answer, that, although it's TAX free, the prizes go into my current account, consequently earning interest and taxed.
So how can we understand the TAX free status better? 😊
Well done on your November and December draws. I guess there is an option of having the prizes paid into a cash ISA perhaps? or moving them from your current account into an ISA.
@@TheCompoundingInvestor Good thought but I already max out my ISA.
Pity NS&I don't allow to reinvest and buy more than the maximum bonds from prizes only.
You’ve had a good year there, much better than me.
I’m expecting it to balance out. Next year is probably going to be a lot lower
I dont hold the full amount but have won around 850 this year which means im smiling on the whole 4 months nothing ive received more than i would had i held my little pot in a savings account with the bank as the interst rates have been so low with the banks delaying passing on increases rates to savers. I think on the whole its worth dividing your savings between isas pensions and then premium bonds you never know you may just get lucky and thats the attraction isnt it.
Absolutely, the anticipation of an upcoming draw does tend to raise the spirits somewhat and if there are a few friends and family involved it can get quite competitive and very entertaining.
@@TheCompoundingInvestor yes I get a real buzz when the beginning of the month rolls around as I'm typing in my bond holder number it is a glimmer of hope that a dream or a get rich quick may be realised unlikely buts can't be ruled out nonetheless
people always forget them but auntie had some few times won a small amount ... she said it was fun while saving ..
It’s really is a lot of fun especially when a few members in the family have them. Can get quite competitive. The number checking app on the iPhone is great too.
Wow this video has done incredibly well, well done! & great results!
Thanks Chris. Makes a change from last years total which was £500 for the full year with the max amount. So much variation and unpredictability with premium bonds
The thing to remember is, some bonds are luckier than others. Mum had some that grandad left to her. Never won a thing. Withdrew them and put them back in and they started generating prizes.
What you say is true, but it's commonly known if you stop winning take them out and and put them back in after a few months, and they will start winning again. The point being it can't be luck .
I found that too. I cashed some in years ago and re-invested and my current ones are doing okay.
I have held the maximum for the past 20 years and I recently won my largest prize ever of £500. However in that previous almost 20 years my largest prize was £100 and its mostly 25 or 50. In December I won zero.
Thanks for sharing your results. Good luck with future draws
would be good to see the interest paid on a building society/ISA v Premium bonds., for a five year period.
Thanks for the suggestion. There are potential tax implications of course in a building society account which can make premium bonds extremely favourable for some especially with larger amounts invested
Only our children know how many we have but we are quite satisfied with the return we are getting. Better than any savings account.
Does continually flipping the bonds help at all. Are newer bonds more likely to produce winners?
I don’t believe there has been any statistically significant evidence to show that newer bonds perform any better than older bonds .
Funny vid, loved it 🤣
Thanks so much
Hey up mate have some that my grandmother got for us kids in early 60s like 6 quids worth what should i do thanks jon
In a way you have 6 lottery tickets each month. If it was me I’d keep them.
@@TheCompoundingInvestor thanks for the reply mate, they would still be in my grans name if that's a thing and been in a box the last 30 years
There is a link below which might help. I think you can check to see if there are unclaimed prizes..
www.nsandi.com/help/lost-touch-with-nsandi
I released £50k of equity via the PB route, and doubled my nominal investment via PMs over 7years.
The outlay circumvented banks and stock markets, whiĺst enabling me to finance 2 replacement cars and the purchase of an equine asset.
Dear CI, does your bonds have the same prefix or have you spread then?
Largest block is 15k, smallest is 1k and many around 3 or 4K
I have the full £50000 invested and find the returns very hit and miss. Last year was quite good with around £4000 in prizes including a £1000 and loads of £100 wins but this year has been pretty poor with only around £300 so far. Still in the four years I've held the full amount I think I've equalled or slightly bettered the average saving interest for easy access. I'm sure there are better returns out there but so far I can't complain too much.
great video
Thanks so much
that rate payer chart was really useful. What do you do with your winnings?
Winnings go into a savings account so I have cash available to put more into the market if there is a significant fall. This usually happens unexpectedly so I like having some cash on standby
@@TheCompoundingInvestorno doubt paying tax on your savings account 🤩
For the last tax year I received less than £20 interest in my Direct Saver account. I can receive up to £500 before having to pay tax on it.
They work differently here they are the same price, same prizes.But the maximum bonds you can hold in direct purchases is 250,000. But that can be added to if you win, as you have the choice to redeem the prize or reinvest, and the upper limit increases.. you have an excellent win rate I get no returns from mine. But that is easy to see why, companies and wealthy individuals invest in Bonds here, holding the maximum purchase amounts. They have a much better return on their money, and of course their returns are tax free.
Thanks for the info. Being tax free is great bonus
That’s why they are a great investment but to be In with a chance of getting a return here you would need double your amount, and rather than cash in winnings set up your account to reinvest the winnings. Currently all winnings in Ireland are tax free, including the lottery.
I believe I may have a 1 pound bond and 5 pound bond floating around when I was born, this was back in the 80s,
You never know, that big win could be just around the corner. All the best in future draws
@@TheCompoundingInvestor Thanks one of the neighbours bought these