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Premium Bonds no longer feasible?
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Ramondo
Posted: 02 July 2022 10:01:32(UTC)
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I've checked my Premium Bonds for wins this month, have won two £25-00, which brings my total winnings for the 7 months of this year to £425-00, that's on the maximum holding of £50K, giving about a 0.85% return.
With current 1 year fixed rate bond interest of about 2%, P/Bonds plainly dropping in being worth while.

There is of course the chance of a "big win" and also the money is sheltered from tax, but decisions to be made soon as to whether to keep my P/Bonds going.
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Mr Helpful on 02/07/2022(UTC), Busy doing nothing on 02/07/2022(UTC), Tyrion Lannister on 05/08/2022(UTC)
countrymum
Posted: 02 July 2022 10:38:16(UTC)
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Prob worth pointing out that the rate only recently changed - 1% to 1.4% - effective from the June draw. Still below other options, but one would hope that the increased prizes from June onwards will filter back to you by some small degree.

I'm still holding out for the big win - not happened yet, clearly I'm due .... ;)
I always know it's never a big win as I get a text message if I win, it says "your winnings have been reinvested into more bonds" (as that is how I've set it up). If I won £1m, they clearly couldn't do a reinvestment - so really I'm just holding out for a differently-worded text.
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Tim D on 02/07/2022(UTC), Ramondo on 02/07/2022(UTC), Jeff Liddiard on 02/07/2022(UTC)
Ramondo
Posted: 02 July 2022 11:38:38(UTC)
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[quote=countrymum;229301]Prob worth pointing out that the rate only recently changed - 1% to 1.4% - effective from the June draw. Still below other options, but one would hope that the increased prizes from June onwards will filter back to you by some small degree.

I'm still holding out for the big win - not happened yet, clearly I'm due .... ;)
I always know it's never a big win as I get a text message if I win, it says "your winnings have been reinvested into more bonds" (as that is how I've set it up). If I won £1m, they clearly couldn't do a reinvestment - so really I'm just holding out for a differently-worded text.

Thanks for the update re prize %.

I think that you, I and many others are all locked in to P/Bonds for the big win!
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countrymum on 02/07/2022(UTC)
Bvlp
Posted: 02 July 2022 12:08:51(UTC)
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Certainly not about the ‘big win’ for me. As a 45% marginal tax payer I get no tax free savings allowance so the tax status of PB’s is great. The prize rate is now 1.4% which is in-line with the best easy access rates, comparing to 1 year fixed rate doesn’t make sense as you can withdraw your money from PB’s whenever you like. So PB’s are absolutely still feasible…
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Ramondo on 02/07/2022(UTC)
Ian Eccles
Posted: 02 July 2022 12:46:13(UTC)
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I posted the other day regarding , what to do with spare cash in your portfolio, my suggestion being to put it into PB because your broker pays no interest or a derisory amount.
Just seen an article in todays paper regarding the 2 £1M winners, one lucky winner comes from Surrey holds £22350 & only purchased the winning bond nine months ago.
2 people received £1M
10 ... £100k
19 ... £50k
40 ... £25k

Those people like me who hold PB .... GOOD LUCK.
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Ramondo on 02/07/2022(UTC)
Big boy
Posted: 02 July 2022 13:06:53(UTC)
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Bvlp;229304 wrote:
Certainly not about the ‘big win’ for me. As a 45% marginal tax payer I get no tax free savings allowance so the tax status of PB’s is great. The prize rate is now 1.4% which is in-line with the best easy access rates, comparing to 1 year fixed rate doesn’t make sense as you can withdraw your money from PB’s whenever you like. So PB’s are absolutely still feasible…


I agree its almost instant access and available for Investment when markets turn. For you I make the Grossed up return 2.54%. I am sure like you its not a big deal and more about finding a save short term home for you cash... Apart from RSE/JZCP in the short term my trash has been outperforming shares.
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Ramondo on 02/07/2022(UTC)
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