Premium Bonds

[admarlow]

Im thinking of buying �30k of premium bonds as I am fed up of my �100 a month odd interest from ING what does everyone think?

[Ethel]

If you don't win you'll be losing about �1300 per year. It's a gamble.

If you do win, you could be laughing all the way past ING.

Your interest rate can be bettered - especially as interest rates are rising.

Try it for a year. You never know!

[BigMac]

The odds of any one bond winning any single prize are (from 1 September 2006): 24,000 to 1 [source: www.NS&I.com]

Therefore, with �30k of bonds, and 'average' luck, you should win 15 times per year. Mind you, you might win nothing.

The lowest prize is �50; so, with average luck, 15 x �50 = �750 - or an annual rate of return of 2.5%.

But, you have the chance of winning �1m, or just �5k, which would easily beat the return you get from ING.

[grannyg]

Excellent idea, the �30,000 is always easily returned in a few days if ever you need it.As BigMac says the odds on a good annual return are good.

[lady_p_gold]

I would go for it .... there is nothing to beat the nice feeling when you see that familiar postmark on the letter. You will win �50 quite regularly and possibly more of course. I have opted for any win I have to be put into new bonds, thus I am not tempted to spend it and it keeps up with inflation, however not sure if you can do this if you hold the maximum number of bonds... you probably can.

[goldfish1]

Perhaps you could invest in the premium bonds for (say) a year and review the situation. You'll still get your �30k back and should have won at least some minor prizes. You never know, the million could be yours as well.
Good luck.

[WendyS]

If you can afford to forego the interest for a year, give it a try.

And if you can't wait for the excitement of a prizewinning envelope dropping through your letter box every month, you can go onto the NSI website on the third working day of every month, feed in your bondholder number and check whether your gamble is paying off and you've won a prize.

[Hard@it]

I would do it as you must remember that bank interest will not be that high plus you pay interest on it.Whereas Ernie is non taxable and you have the chance of winning a fortune.

[admarlow]

Thats great that you can check it online as I am going travelling for a year! I have just bought them!! woohoo the paperwork will be through next week and I will be included in the October draw, I can't wait!