How's your luck with Premium Bonds?

[motorbiking]

£50k in
Monthly winnings of £275 gives you £3,300 per year. 6.6% return.
If it was taxable there would be £1,485 tax to pay (at 45%).. but there isn't so add that to the net income:£4,785

£4,785 / £50,000 =9.57% for a top rate tax payer.

 

[JohnD]

£50k in
Monthly winnings of £275 gives you £3,300 per year. 6.6% return.
If it was taxable there would be £1,485 tax to pay (at 45%).. but there isn't so add that to the net income:£4,785

£4,785 / £50,000 =9.57% for a top rate tax payer.

Although the prize fund is actually 3.8%

If you had £50,000, and earned the average prizes, you would get £1900 in an average year, tax free.

But the prizes are distributed randomly, so you might get more or less.

A tiny proportion of holders get very big prizes, so the vast majority of holders will average less than 3.8%, but the more bonds you hold, and the longer you hold them, the nearer you will approximate to the average.

It is vanishingly improbable that anybody will get £275 a month.

 

[noseall]

I've just had a two year fixed thingy mature at my Building Society. It paid £4'853 and pence. Being the worlds worst at making money work, I was quite chuffed. No doubt I could have earned double that or more if I was prepared to take a wee bit more risk. Ho hum.

I have a premium bond number in a drawer somewhere, that an auntie bought me for my 21st. I have not had it out of the envelope for years and would not know what or where to check.

 

[JohnD]

Last year I didn't think I was doing well, but netted over 4.5%. Which as a top rate tax payer, is pretty good.

And last year, approximated to the prize fund rate at the time.

This is quite usual for larger holdings.

Some years will be a bit better, and some a bit worse.

 

[JohnD]

I've just had a two year fixed thingy mature at my Building Society. It paid £4'853 and pence. Being the worlds worst at making money work, I was quite chuffed. No doubt I could have earned double that or more if I was prepared to take a wee bit more risk. Ho hum.

I have a premium bond number in a drawer somewhere, that an auntie bought me for my 21st. I have never had it out of the envelope for years and would not know what or where to check.

Take it out of the envelope. Write to NS&I and tell them your address. Or do it online. In the meantime, look for the holders number and see if you've won anything recently.

Prize Checker

Ready to see if you have won a prize? Enter your holder's number to check if you’ve won in this month’s Premium Bonds draw. Good luck!

www.nsandi.com

 

[ReganAndCarter]

£75

 

[motorbiking]

Although the prize fund is actually 3.8%

If you had £50,000, and earned the average prizes, you would get £1900 in an average year, tax free.

But the prizes are distributed randomly, so you might get more or less.

A tiny proportion of holders get very big prizes, so the vast majority of holders will average less than 3.8%, but the more bonds you hold, and the longer you hold them, the nearer you will approximate to the average.

It is vanishingly improbable that anybody will get £275 a month.

The point of my post was to show the maths in reply to the previous post. I'm not suggesting someone will make £275 a month on £50k. The more tax you pay, the more they make sense.

 

[motorbiking]

I've just had a two year fixed thingy mature at my Building Society. It paid £4'853 and pence. Being the worlds worst at making money work, I was quite chuffed. No doubt I could have earned double that or more if I was prepared to take a wee bit more risk. Ho hum.

I have a premium bond number in a drawer somewhere, that an auntie bought me for my 21st. I have not had it out of the envelope for years and would not know what or where to check.

Pay a mortgage off if you have one, Max your ISA, max your premium bonds, max your pension contributions. After that, with your skillset, I would suggest an Airbnb holiday let. Perhaps a fixer upper. choose a pro-tourist location (not Wales), where you can pay business rates as a self contained holiday let, i.e. zero rather than council tax. You'll have a nice place to enjoy when it's not been rented and you'll make similar money to a buy to let, without all the bother of ASTs, energy ratings etc.

 

[noseall]

Pay a mortgage off if you have one

Done (a number of years ago).

, Max your ISA, max your premium bonds

Maxed for the year.

, max your pension contributions

Gonna look at increasing pension (again) when we cut off the eldest's' allowance.

. After that, with your skillset, I would suggest an Airbnb holiday let. Perhaps a fixer upper. choose a pro-tourist location (not Wales), where you can pay business rates as a self contained holiday let, i.e. zero rather than council tax. You'll have a nice place to enjoy when it's not been rented and you'll make similar money to a buy to let, without all the bother of ASTs, energy ratings etc.

 

[Ihavenojob]

I got £300, son got £50, SWMBO and daughter got zilch.

SWMBO didn't get zilch after all. She received a "warrant" in the post for £50. Turns out one of her premium bonds she has had since childhood came up trumps. She hasn't quite got the maximum in her online holdings, so these odd one or two ancient ones don't show up online. When I maxed out, I forgot about my childhood ones, and eventually got a letter saying I had gone over the limit, so they refunded the surplus.

 

[Scally-Ho]

This topic is new to me so no brickbats please.
Mrs Scally is maxed out with her bond holding as am I, and I cannot remember the last time we as a couple did not fare reasonably well on the 1st of each month, or there abouts. We leave our individual holdings alone until either of us receive at least £10k from a single bond number and then that block of £50k is surrendered for reissue into a new block. Right or wrong, it works for us because our annual return usually works out very nice indeed, or as Dell Boy would say, a nice little earner Our monthly returns are paid directly into a nominated bank for which we use just for investments to keep the Bank of Mum & Dad well upholstered. . . we have four daughters who always need something to ease their family's way through sticky times.
Other bond holders we know just leave their holding alone and fare nowhere near as well as we do.

 

[Koolpc]

£10k wins!!!

You are extremely lucky!!!

 

[Scally-Ho]

£10k wins!!!

You are extremely lucky!!!

I would say shrewd rather than lucky (it's in my blood). I believe it's the fact of moving the whole block of £50k that makes all the difference. Looking back thru all of the stats, anyone with a block of £50k and a good 'win' seldom sees any more from that block. By moving it, the so called 'random' number selector (random my arse) just sees a new block so includes those numbers in the next draw.

 

[Koolpc]

I would say shrewd rather than lucky (it's in my blood). I believe it's the fact of moving the whole block of £50k that makes all the difference. Looking back thru all of the stats, anyone with a block of £50k and a good 'win' seldom sees any more from that block. By moving it, the so called 'random' number selector (random my arse) just sees a new block so includes those numbers in the next draw.

When you say you move it, you mean you withdraw it and then buy another £50k amount?

 

[Scally-Ho]

Yes, because there is no other way of reinvesting the holding in PB's again.