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    ...but I don't really know much about what they are and what they do. I've been told they are essentially raffle tickets, and recently I've won £50, although I've not received this because my address hasn't been updated in years.

    How can I get that money? Also, is it possible to cash in premium bonds? It appears I've only won £50 in 20 years!


    UPDATE! 26.06.2011 (original post 28.07.2009)

    Started with £70, won £50 which I cashed in. Have checked it today and found I have £270 of premium bonds, an extra £200 in 2 years hurrah!
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    (Original post by kat2pult)
    ...but I don't really know much about what they are and what they do. I've been told they are essentially raffle tickets, and recently I've won £50, although I've not received this because my address hasn't been updated in years.

    How can I get that money? Also, is it possible to cash in premium bonds? It appears I've only won £50 in 20 years!
    You can cash them in at any time (you just give one months notice).
    Each bond is worth £1.

    You can see if you've won here:
    http://www.nsandi.com/products/pb/haveYouWon.jsp


    Yes, it is essentially a raffle - you have a chance to win money (up to the jackpot of £1m each month), but gain no set interest in your investment. It's a more fun way to invest money.
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    (Original post by M_E_X)
    It's a more fun way to invest money.
    Or 'safe' gambling... or a sure fire way to lose money however you like to see it

    I'd sell them if I were you, theres a negliable chance of winning.
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    Premium bonds are tax free as well I think.

    So if you have already invested the maximum amount in an ISA and wan't more tax free (safe) savings keep them.

    Also don't see how it is like gambling as you can always get your stake back? You can't actually lose your money.
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    (Original post by JammyP)
    Premium bonds are tax free as well I think.

    So if you have already invested the maximum amount in an ISA and wan't more tax free (safe) savings keep them.

    Also don't see how it is like gambling as you can always get your stake back? You can't actually lose your money.
    Thats why its 'safe'. You're gambling as your return can be a million or zero or some prizes in between like the lottery.

    The average return is far far lower than other accounts and its 'safe' because its usually (we aren't in usual times for inflation) before the rate of inflation so you lose money. That means its not safe.
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    I cashed in £2500 of mine the other day, you just pick up a form frm the post office and send it off
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    My Grandad has premium bonds and has won loads of money over the years so it might be worth keeping them as if you win it will be a nice little surprise
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    (Original post by fairyqueenanna)
    My Grandad has premium bonds and has won loads of money over the years so it might be worth keeping them as if you win it will be a nice little surprise
    How many of them do they have?

    Since there is a 1 in 36,000 chance of one winning per month then if you had £200 you would win on average once every 15 years... Admittedly the first would be on average after only 7.5 years though.

    A long time to wait for a tenner!
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    This handy calculator at MSE is good for working the chances of winning and how much etc

    http://www.moneysavingexpert.com/sav...ds-calculator/

    Also shows how premium bonds compare to the top savings account and ISA.

    As a student you will probably be exempt from tax on savings so you would probably be better off sticking the money in the highest interest account you can find.
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    I have £200 worth of premuim bonds. I can't remember how long I have had them, but know it is a good few years. I have only ever won £50
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    (Original post by student070289)
    I have £200 worth of premuim bonds. I can't remember how long I have had them, but know it is a good few years. I have only ever won £50
    Thats pretty good going
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    i had £10,000 worth and was winning every few months then i had to withdraw some and havent won since
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    (Original post by M_E_X)
    You can cash them in at any time (you just give one months notice).
    Each bond is worth £1.

    You can see if you've won here:
    http://www.nsandi.com/products/pb/haveYouWon.jsp


    Yes, it is essentially a raffle - you have a chance to win money (up to the jackpot of £1m each month), but gain no set interest in your investment. It's a more fun way to invest money.
    Only an utter moron would think of Premium Bonds as an investment as the OP illustrates
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    (Original post by JammyP)
    Premium bonds are tax free as well I think.

    So if you have already invested the maximum amount in an ISA and wan't more tax free (safe) savings keep them.

    Also don't see how it is like gambling as you can always get your stake back? You can't actually lose your money.

    So you put it in premium bonds when you can have a further £15K in tax free NS&I saving certificates earning RPI + 0.5%, currently about 5.7% on top of your £10K+ ISA allowance.

    Great decision there!
 
 
 
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