Does anybody use these? I’m looking into transferring my savings into bonds. Are they safe ?

They are safe but do not earn you interest. As interest rates are still very low you can get more of a return via prize money but this will depend on how many you buy. They can be cashed in with no charge.

Yes they are safe
Why are you looking to transfer to premium bonds though ?

I have Premium Bonds. Investments are protected 100% but the maximum value you can have is £50k. As interest rates are pretty crap at the moment Premium Bonds can be much more beneficial but there is no interest actually paid on bonds. Instead they do monthly prize draws where the odds of winning are roughly 30,000 to 1. EG if you invest £10k and have average luck you will win a prize once every three months. Prizes range from £25 up to £1million.

You can get any winnings either re-invested or paid into a bank account of your choice.

Hope this helps.

Put a reasonably substantial amount in at the start of the year (to see how it would go) and winning small prizes most months
If this trend continues I will make around 1.5% which is as good as you can get anywhere

Somebody at work was talking about them and it made me think I may as well at least look into it. The pittance of interest I get currently I may as well put them in premium bonds and be entered into the draw.

jojomk1 wrote:Put a reasonably substantial amount in at the start of the year (to see how it would go) and winning small prizes most months
If this trend continues I will make around 1.5% which is as good as you can get anywhere

Inflation is currently 3% though. Not much use getting 1.5%

UpTheBeehole wrote:Inflation is currently 3% though. Not much use getting 1.5%

Please enlighten us all as to where we can achieve returns on our investments that will be in
excess of inflation.

Funkydrummer wrote:Please enlighten us all as to where we can achieve returns on our investments that will be in
excess of inflation.

All it takes is a brain and an ISA.

Funkydrummer wrote:Please enlighten us all as to where we can achieve returns on our investments that will be in
excess of inflation.

Plenty of places you can do better than 3%.
For example, my investment in an emerging markets fund has increased by over £500 over the last 3 years for every £1,000 invested.

This is a decent calculator to give you an idea of the returns https://www.moneysavingexpert.com/savin ... alculator/" onclick="window.open(this.href);return false;

At the moment, most of my money is in a stocks and shares ISA with Nutmeg. Over the past couple of years it has consistently returned between 6-9% (and also tax free with the ISA allowances). Obviously there is the possibly that if the market falls it will also lose value but they have been consistent so far.

The management fee is a bit high (although the return above is after management fee) but that is the price of convenience. Setting it up takes 5 minutes and, once you've given an indicator of how long the investment is for and how risky you want it, you don't need to do anything more.

I have some, no idea about the details etc, my dad bought me some when I was born in '77. Tracked them down once (late 90's) and had won £50

Funkydrummer wrote:Please enlighten us all as to where we can achieve returns on our investments that will be in
excess of inflation.

UpTheBeehole wrote:All it takes is a brain and an ISA.

Which ISA pays more than 3%? The best I found the other week was 2.2%.

FactualFrank wrote:Which ISA pays more than 3%? The best I found the other week was 2.2%.

A stocks and shares ISA coupled with a Vanguard fund is the cheapest and easiest way.

Funkydrummer wrote:Please enlighten us all as to where we can achieve returns on our investments that will be in
excess of inflation.

Bitcoin.

CombatClaret wrote:Bitcoin.

PB are risk free though. Bitcoin isn't.

FactualFrank wrote:PB are risk free though. Bitcoin isn't.

No risk = no decent ROI, and no fun!

I have 5 k in premium bonds...have had about 6 wins of £25 over 2 years..not a lot but better tban a kick in the teeth which is what you get on bank interest.Plus there is always a chance that a big win may come along .lol

I have £10k in Premium Bonds and have won about £150 over 22 years. No value elsewhere really but the advantage to me is I don't get tempted to waste it because it isn't accessible from a cash machine.
No real excitement but hey, at least there is the anticipation.

Some financial advisers recommend buying premium bonds as part of an investment, if you are in a position to buy and forget.
The return is small, but like the lotto, theres always a possibility of a tax free win.
And, unlike lotto you can get your original dosh back at any time in the future.
Defo worth a punt if you have spare cash. And better than a piggy bank...!

Premium bonds definitely have a place in a portfolio for a cautious investor. They're safe as houses but not particularly exciting. The NS&I website weighs up the pros and cons pretty well

https://www.nsandi.com/premium-bonds

Me and My wife put our house deposit money in Premium Bonds 6 months ago whilst we are looking for a property. I’ve won £25 every month and my wife £25 four times. It’s safe as houses and all funds can be withdrawn within 72 hours. It’s a lottery yes but definately better than the £2 a month it was earning with HSBC - i’d Recommend

Can't beat Premium Bonds for 'no risk' investment. I win a little just about every month, sometimes £25, sometimes as much as £100.

I have £10 one that my Grandad bought me in 1972 as far as I'm aware it has never won anything. That said I haven't checked for a long time I could be a milionaire

It is a myth that Premium Bonds are a no risk investment. If you don’t win any prizes then inflation will eat away at the real value of the bond. I was given about £30 of premium bonds in the mid 70’s, when this would have been a reasonable sum to spend. I have never won a prize. They are clearly worth a lot less at today’s prices.

I invest in them and have had a good return up to press; I reckon I'm due a big payout though

Any winners this month? I’ve just checked the prize checker app and I’ve won £25 this month.

Yes, £25.

LongsideClaret wrote:Any winners this month? I’ve just checked the prize checker app and I’ve won £25 this month.

Woo hoo - 5 x £25

My bitcoin doing great

Still time to get on board. In recent news.

CME Group, the world’s largest exchange operator by market value, is readying plans to offer futures on bitcoin, giving momentum to cryptocurrencies’ move away from the fringes of finance. - The FT

Zesty wrote:Does anybody use these? I’m looking into transferring my savings into bonds. Are they safe ?

As safe as houses.

Low return but always the chance of the occasional bigger win. I have in the region of 6k invested and take any winnings as more bonds. Have just won 25 pounds but that only the 2nd time this year although last year was better.
As others have said probably OK if you can afford to leave them alone and aren't really looking for a big return. But YOU NEVER KNOW

JohnMac wrote:I have £10k in Premium Bonds and have won about £150 over 22 years. No value elsewhere really but the advantage to me is I don't get tempted to waste it because it isn't accessible from a cash machine.
No real excitement but hey, at least there is the anticipation.

Invested in a FTSE100 index fund you'd have 24k by now rather than 10,150...which was worth 5,700 in 1995 terms...so this sounds like a pretty terrible investment. In real terms you've lost almost half of your initial investment.

kaptin1 wrote:It is a myth that Premium Bonds are a no risk investment. If you don’t win any prizes then inflation will eat away at the real value of the bond. I was given about £30 of premium bonds in the mid 70’s, when this would have been a reasonable sum to spend. I have never won a prize. They are clearly worth a lot less at today’s prices.

It's no risk in the sense that you will get your initial investment back whenever you want it. It's backed by HM Government which hasn't failed for hundreds of years.

Are ISAs still considered good investments for the average saver? Since we can earn £1,000 interest tax free each year I believe they are less attractive.

mohamed69 wrote:Invested in a FTSE100 index fund you'd have 24k by now rather than 10,150...which was worth 5,700 in 1995 terms...so this sounds like a pretty terrible investment. In real terms you've lost almost half of your initial investment.

No argument there mate but I knowingly put it there in order to win the million

mohamed69 wrote:Invested in a FTSE100 index fund you'd have 24k by now rather than 10,150...which was worth 5,700 in 1995 terms...so this sounds like a pretty terrible investment. In real terms you've lost almost half of your initial investment.

The "specific" question was are PBs safe and not on returns, its so easy to quote from the past, the problem is no one.. and I mean no one can accurately predict the future performance on Index and or share investments.

South West Claret. wrote:The "specific" question was are PBs safe and not on returns, its so easy to quote from the past, the problem is no one.. and I mean no one can accurately predict the future performance on Index and or share investments.

Median returns for premium bonds are roughly 0.5%. Inflation target in the UK is 2%. Premium bonds are safe in the same way that lighting your cash on fire is safe - you lose it all but at least don't have to worry about it anymore.

Given a long enough time frame equity markets have always risen, albeit with some short term volatility. Hence the phrase: 'time in the market is more important than timing the market.'

Of course, past results do not guarantee future performance...but I would take my 'chances' in a long term diversified equity fund all day over a guaranteed loss in premium bonds, especially given a 10 year hold period. Staying in premium bonds longer than 5-10y is criminal.

Funkydrummer wrote:Please enlighten us all as to where we can achieve returns on our investments that will be in
excess of inflation.

This is incredibly easy to do with minimal risk

mohamed69 wrote:Median returns for premium bonds are roughly 0.5%. Inflation target in the UK is 2%. Premium bonds are safe in the same way that lighting your cash on fire is safe - you lose it all but at least don't have to worry about it anymore.

Given a long enough time frame equity markets have always risen, albeit with some short term volatility. Hence the phrase: 'time in the market is more important than timing the market.'

Of course, past results do not guarantee future performance...but I would take my 'chances' in a long term diversified equity fund all day over a guaranteed loss in premium bonds, especially given a 10 year hold period. Staying in premium bonds longer than 5-10y is criminal.

Once again you fail to understand what the OP has asked.

South West Claret. wrote:Once again you fail to understand what the OP has asked.

Go away and practice your reading skills. Come back and have another go when you reach a 15 year old level. Good luck!

mohamed69 wrote:Go away and practice your reading skills. Come back and have another go when you reach a 15 year old level. Good luck!

How very unpleasant.

It was a very simple question - "Are they safe?"

It is a very simple answer - Yes.

spadesclaret wrote:How very unpleasant.

It was a very simple question - "Are they safe?"

It is a very simple answer - Yes.

Nothing in finance is that simple.

He also asked several questions, making it seem more than a general enquiry. Don't try to hide you ignorance behind semantics.

Do you view the UK government as safe? If so, why not invest in an inflation linked Gilt and return multiple time what a premium bonds would return.

For maximum 'safety' (and erosion of capital), buy a safe and some gold.

spadesclaret wrote:How very unpleasant.

It was a very simple question - "Are they safe?"

It is a very simple answer - Yes.

Thank you SC... now have you got it 69?

£75 for me

South West Claret. wrote:Thank you SC... now have you got it 69?

Please read above points. It is not a simple question not a simple answer. I know it's hard to wrap your head around nuance.

Premium bonds are as safe as the UK government. Is that safe? It's subjective. If you deem that safe, why not buy gilts that are also backed by the government but return a hell of a lot more so you aren't getting bent over by inflation.