Premium Bonds

Would anyone reccommend them? What proof do you have of investing?

VS.

Never really invested in them myself but my uncle has thousands of pounds in them and swears by them.

The average expected return is around 3% but obviously everyone hopes they'll scoop the jackpot. Also any prizes are free of any form of Tax so you need not declare it - so 3% is not too bad if you are a in the high income tax bracket.

Not too sure I understand the second part of the question - do you need to prove it? Strictly speaking Premium Bonds are not really an investment they are more lottery as the interest is used to provide the prizes. You obviously would recieve a certificate to provide proof of ownership and to withdraw your original investment.

Phil FM

We get £500 a months worth, good place to throw cash thats safe and theres the permanant chance of a windfall.

My poor old mum bought about £100 worth in the late 60's and hasn't had a BEAN since!!!!

John

[mcmbenjamin]

Please explain these bonds to me? Is this a joke I missed?

[mcmbenjamin]

Did a bit of reading. So basically a lotto?

Not really a lotto because you can get your money back. They are a loan to the government, and instead of paying interest there is a draw each month for a range of fabulous prizes (well money actually, but isn't money fabulous?).

My kids had Premium Bonds bought when they were born, but we have lost the certificates and don't know their numbers, we could have won loads[}:)] but if you don't claim the winnings they just sit there and do nothing waiting for you.

We have moved house a couple of times since they were bought anyone know how to get information on these perhaps, I know it's all a bit vague [?]

thelaceys

My kids had Premium Bonds bought when they were born, but we have lost the certificates and don't know their numbers, we could have won loads but if you don't claim the winnings they just sit there and do nothing waiting for you.

That's part of what I was asking; if you lose the certificate is that it for your money?

45.

45, You can use the tracing service, I know someone that did - very good.
http://www.nsandi.com/help/tracingservicelostbo.jsp

G.

[HighFlyer]

I invested a lump sum in Premium Bonds a few years back. I won something pretty much every month, usually between £50 and £100 - it worked out just under the return i'd have got if the money was in an ISA. The prizes are tax exempt, so its certainly a good option if you have a large sum to invest, but on the flip side, when you take your money back out after a couple of years, it will still be the same amount. You wont have the compounded interest that you would have with a bank account as you'd have probably spent the trickle of winnings.

I think it all depends on how much you are looking to put in in respect of whether its a good ROI.

Thanks,
Sarah

Originally posted by VS045
Would anyone reccommend them? What proof do you have of investing?

VS.

You are issued with a certificate to show the mount you hold.

We buy them every month too. The maximum holding is £30k per person.
I came back from Orlando to find a nice cheque for £500 a few weeks ago.

I was tempted after seeing the adverts for the June draw. Had a look on the nsandi site which said that the minimum £100 investment would have a 240 to 1 chance of winning[:?]

VS.

I think you would find this link very helpful. It provides a comprehensive overview of their benefits/drawbacks.

Originally posted by GrinningJackanapes

Originally posted by mcmbenjamin
Please explain these bonds to me? Is this a joke I missed?

Ben! Leave the British alone. Just sit back with me, quietly, and let's observe their strange conversation topics.

[:w] Carry on, then. Premium bonds. You were saying...

GJ

Not to mention our unusual handshakes......[:I]