premium bonds is it worth holding on?

  rickf 14:07 30 Jul 2013

Have had a couple of hundred pounds of the above for nearly 20 yrs. Never won a thing. On checking winnings it appears those who have won hold them in the 10's of thousands. With only 200 I don't stand a chance in hell!! Might as well close the a/c and put the money with the raise of my meagre savings. What do you think??

  HondaMan 14:10 30 Jul 2013

My wife and I each have the maximum holding, at present £30k each. We get about 4% per annum off the combined holding.

It's your decision, but I suggest you do the maths before deciding

  rickf 14:24 30 Jul 2013

That's what I mean you have together £60k. Chances are you have won several times.

  Aitchbee 14:33 30 Jul 2013

The chances of winning a prize will be significantly reduced from 1st August.

click here

  Flak999 14:41 30 Jul 2013

have a look at this link premium bond calculator it might help you decide.

  bumpkin 16:13 30 Jul 2013

HondaMan, 4% is a very good result, much better than I do.

rickf, of course if you have the max amount you are likely to win more prizes but that needs to be equated with what could be earned from other investments. It is the percentage return that matters at that level of investment.

If you have a few hundred you may as well keep them in my opinion, like the lottery very little chance of winning but not costing you anything other than a few pence in interest a year. Maybe buy some more is another option.

Keep them and good luck next month.

  flycatcher1 16:37 30 Jul 2013

Less than 2% here but we live in hope.

  lotvic 17:29 30 Jul 2013

I had a little win last May from a bond bought about 25 years ago. First time that small batch has won anything :) I intend to keep my very modest holding of Bonds and increase them somewhat.

  Forum Editor 17:27 31 Jul 2013

My wife seems to land £50 wins fairly often. She doesn't hold the maximum allowed, but certainly more than £10,000. She watches the performance like a hawk, and says she'll cash in when the return falls lower than she could get elsewhere.

  sunnypete 18:18 31 Jul 2013

But interest rates are dropping like a stone, will FE's Good Lady find a better investment in a year or two?... perhaps she already is an Independent Financial Advisor?...

  BT 08:31 01 Aug 2013

We started buying Premium Bonds when we realised just how much we were putting into buying Lottery tickets - £8 a week - and getting absolutely nothing back. We started off buying £200 every few months, then when interest rates dropped through the floor a few years ago, decided that there was little to lose by investing in the maximum amount of Premium Bonds, at last we were saving £8 a week. We have £35000 total between us.

So far we have done fairly well averaging about 3% p.a. tax free return over the last few years. So far this year we have won 15 prizes, mostly £25 but including this month £100 & £25. Much better than the Lottery and we still have our stake money.

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