Has anyone won a big amount on the premium bonds?

FatCat said:
You must be quite lucky or hold a lot of them!
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I have the maximum £50k but it’s my deposit for my house and money I inherited from my mum. As soon as the world starts spinning the right way and I know I definitely have a job and can pay a mortgage I’ll see them. I can’t be bothered to work out and pay capital gains so that’s the reason I have premium bonds. I get the £1k allowance on my savings and the rest of my money is exempt from capital gains or below the dividend threshold. I paid £30k inheritance tax on my mums estate and she didn’t live long enough to claim her state pension so the taxman can 🖕off.
 
Smog in Wilts said:
The current return on Premium Bonds is very low, it generally tracks interest rates, so the chances of picking up the low £25-£100 prizes is very low at the moment. The bigger amounts are ring fenced and therefore the probability of winning the big prizes remains the same, given a steady number of premium bonds in circulation. However the chances of winning are still very low.
I had them for many years and used to get a decent return, it is better than money sat in a bank account and is very low risk.
I was once told that if you churn the bonds, i.e. cash in an a substantial amount and then reinvest increases the likelihood of a pay out, however I can not say that I noticed a difference.
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I would say the current return is relatively high. They normally aim the return at just below the rate for deposits, and as such, are only attractive to higher rate taxpayers. There is a delay period which is good when rates are dropping/bad when they are going up. Atm things are different because rates are so low they daren't reduce the prize money any more and lose investors. Someone above said they were getting a 2% return for a large holding of PBs, which is better than cash ISAs.
The best thing about Premium Bonds IMO, is that you can rest assured you wont have the stress of winning a seriousy life changing amount and having the tabloids hunt you down etc.
 
According to Money Saving Expert, you'll need £15K worth of Premium Bonds to see a return of >1%, given average luck.

If you have less than £15K worth, or are unlucky, then you'll get a return of <½%.

For anyone risk averse then bank accounts and PBs are pretty much the only option. You won't see much of a return though, if any.

I doubt interest rates will be low for at least two more years, so PBs are going to be poorish investments for years yet. Of course there is a chance that you'll win big, however remote.

The other thing to consider is that NS&I make very little attempt to trace people who have moved house. There are literally millions of unclaimed prizes from the last few decaes. So if you move, make sure you notify them, because they won't find you otherwise.
 
The prize fund is about 1% of the value of all Premium Bonds. Quite a few high rate tax payers own £50k worth, because the winnings are free of all taxes. I would not bother if you are basic rate tax payer or zero rate tax player. Buy a £2 lottery ticket or do a £2 football accumulator, its more fun.

Surprised someone had a premium bond in 1950, they were not introduced till 1956.
 
Anton_Berg said:
I would say the current return is relatively high. They normally aim the return at just below the rate for deposits, and as such, are only attractive to higher rate taxpayers. There is a delay period which is good when rates are dropping/bad when they are going up. Atm things are different because rates are so low they daren't reduce the prize money any more and lose investors. Someone above said they were getting a 2% return for a large holding of PBs, which is better than cash ISAs.
The best thing about Premium Bonds IMO, is that you can rest assured you wont have the stress of winning a seriousy life changing amount and having the tabloids hunt you down etc.
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The return isn’t guaranteed of course
If you could guarantee it - better than most ISAs at the moment.
But, your money is safe and you can get access to it.
 
Redwurzel said:
The prize fund is about 1% of the value of all Premium Bonds. Quite a few high rate tax payers own £50k worth, because the winnings are free of all taxes. I would not bother if you are basic rate tax payer or zero rate tax player. Buy a £2 lottery ticket or do a £2 football accumulator, its more fun.

Surprised someone had a premium bond in 1950, they were not introduced till 1956.
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Like Northener, I can assure you that they were available in 1950 and have the certificate to prove it.

EDIT Just had a Google and you may have read the first line of Wiki which states it was introduced in 1956. However later on it states:

The term "premium bond" has been used in the English language since at least the late 18th century,[6] to mean a bond that earns no interest but is eligible for entry into a lottery.[7]

The modern iteration of Premium Bonds were introduced by Harold Macmillan, as Chancellor of the Exchequer, in his Budget of 17 April 1956...

So what I and Northerner hold is an older version of the modern-day bond.
 
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