Wouldn’t this also be tax free?
I thought Premium bonds are tax free simply because it’s a type of gambling, which this would also be.
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I always thought that PB’s are tax-free because the funds are Government-backed. I’d be surprised if Chip have been awarded tax-free status.
If they have, they should be shouting about it 
.
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What are people’s views on premium bonds then?
I’ve never even looked into it.
As long as you understand that there’s no guaranteed prize AND there’s no interest paid on your investment, that’s pretty much all there is.
But you can become very rich of course.
Useful summary….
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I’ve never been a fan of saving so this would at least make it a little bit more interesting.
You mean the chance of a big win?
Just to be clear I don’t have a gambling problem 
I think like a lot of people I don’t see the point in saving. At least with investing and premium bonds there is at least a chance of a much better return.
If it helps, the LAST thing I’d call Premium Bonds is gambling - that it definitely isn’t, in any real sense of the word. In any case, gamblers usually lose their stake - with Premium Bonds it generally just withers on the vine…. .
That’s an interesting position to take. With one (investing) there’s a real risk of losing money.
I’m not sure you’re meaning there’s no point in saving - rather that you find the idea uninteresting. No buzz, so to speak?
Yes it just doesn’t interest me at all.
Things like premium bonds I presume gets people to save who normally wouldn’t bother.
Maybe, but I’m more inclined to think folk stick a bunch of cash in Bonds and forget about them.
No active saving - just checking the app for the monthly results. 
There’s a whole thread devoted to comparing the size of winnings, or not, over on the MSE Forum.
https://forums.moneysavingexpert.com/discussion/81778/premium-bond-winner#latest
As I currently do not hold any Premium Bonds, it is not a thread I follow any more.
Well I’ve opened an account and put money in. Wish me luck!
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It’s a bit of a swing and maybe hit maybe miss. I’ve beaten out BoE interest rate (already for this natural year and the tax year), over the last 6? months. overall ive beaten it, too.
my holdings aren’t even massively large (lower end of five figures)
You’d be right. My plan is pretty much to just use it as part of a wider portfolio to make several income streams; like, there’s no negative to having them sat there, if you don’t need the 50k for another reason. They’ll then pay out to my bank account, on the semi-regular.
Except the likelihood that your significant Premium Bond fund pool is being eroded more than any other of the income streams.
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In the sense more people will buy them? Or inflation will eat at the value of payouts? Because I already write all my investments to 0, assuming I could lose them tomorrow. I also don’t feel like 50k is a lot in the grand scheme of things, could easily lose more on a large life-long held pension in a bad market.
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I’m referring to the impact on your PB holding and the likelihood of not winning anything with it.
As it gains no interest in itself, there’s nothing mitigating the effects of inflation (and we all know how ineffective normal savings rates are at easing that effect even for those funds which attract any interest at all).
Simply put, I’m merely saying that Premium Bonds, without frequent wins, is as inefficient as it gets as a savings tool. It’s tantamount to sticking the cash under the mattress.
The pull is that one chance in millions of a big win.
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6 posts were merged into an existing topic: Energy prices
Disagree, my luck is typically good for things like this. As mentioned, I’ve not ever gotten a yearly return lesser than I’d get in an interest paying account (unless it was maybe a 1+ year fix).
Not quite - my mattress of cash isn’t backed by Her Majesty’s Treasury.
We’re on a different tacks here….