Premium Bonds winnings compared (3 x £50k saved for a year)

Рет қаралды 21,230

Be Clever With Your Cash

Күн бұрын

Пікірлер: 101

@psprog Ай бұрын

My sister put £10k in this year and won £5k within a few months. Quite a return!

@jno5 Ай бұрын

I won in total this year (Jan - Dec 2024) £4,175……I only managed to max it to the full £50k in June this year by reinvesting my winnings, I only had £49k at the beginning of the year. So if my poor maths are correct that’s about 8.35% Breakdown was:- Premium Bonds 2024:- Jan - £200 Feb - £100 Mar - £275 Apr - £50 May - £175 Jun - £250 Jul - £75 Aug - £25 Sep - £2,275 Oct - £300 Nov - £325 Dec - £125 Overall Total = £4,175

@DanyalRafiq-r6x Ай бұрын

Which account?

@alangordon3283 28 күн бұрын

@@DanyalRafiq-r6xnot very bright are you.

@kaymilstead4374 Ай бұрын

If they pay 40 or 45% tax, the interest rate is significantly higher because premium bonds do not attract income tax.

@MakeItCount-55 Ай бұрын

Thanks for the video. Good comparison. I "compete" against my daughter each month. We enjoy the game of it :-) 50k each to see who wins.

@theEnlightenedpsychologist Ай бұрын

"Thank you for the fantastic advice on your channel! I recently swapped accounts based on your recommendations, and it has been so worthwhile. A big thanks for sharing such valuable insights-keep up the great work!"

@Law_Abiding_Citizen_ok Ай бұрын

£50k, 2024 got me £3,425 in prizes = 6.85% (tax free👍)

@ollie1317 Ай бұрын

Started year with £27720 and won £1075 which reinvests each time. 3 months won nothing,biggest in a month was £275. No idea what % that works out as? but seems reasonable and i like them and the chance to win. I added a bit more from other savings to get it to £35k at end of last month.

@davidbrayne8866 Ай бұрын

I have the full £50k in premium bonds and won £1225 over the 12 month period. I am a higher rate tax payer, but still would have been better putting the money in a 12 month bond.

@Phoon8704 Ай бұрын

I made £1400 on 50k, I feel the same way as you...but I guess its tax free and theres always hope to win more

@catherine4339 Ай бұрын

I have no where near the full amount in but I have won £625 this year what I am happy with, it does all come down to luck and love to check every month.😊🍀

@antoniopalmero4063 4 күн бұрын

I have £21,175 in premium bonds and my best win by far after 2 years of the odd £50 or £100 here and there was December 2024 £550 .🎉.

@reggie5495 Ай бұрын

I've got the full 50k in and won £2,325 in 12 months.

@MrDuncl 26 күн бұрын

The tax free status is the main attraction of Premium Bonds. I have just had to increase my Pension AVC yet again to avoid higher rate tax. ISAs maxed out for the year. A normal savings account with just £20K in it took nearly all my £1000 tax free savings allowance. With over a dozen accounts I dread the idea of having to fill in a tax return so put a lot of effort into avoiding doing so.

@ag4871 11 күн бұрын

Doing a tax return online these days isn't onerous. With savings you only have to put in a single total. You don't have to enter each account separately. I keep a spreadsheet across the year as income comes in so all I have to do is plug the totals in and it's done. Takes about 10 minutes. If you've got capital gains or income from share schemes it gets much more tricky but if all you've got is employment/pension income and interest there's nothing to worry about.

@waynebrooks1570 Ай бұрын

I'm interested to know have they bought bonds sporadically or have they bought the bonds in a 50k cluster

@SW-ok8qr Ай бұрын

It doesnt matter. The bonds are picked randomly

@barrydwyer2039 Ай бұрын

All 3 have done better because there is notax payable on the winnings

@G7VFY 19 күн бұрын

What about the difference in buying your bonds in ONE block or in multiple smaller blocks? Is it worth replacing old bonds with new ones?

@ag4871 11 күн бұрын

It shouldn't make any difference. Each individual character in the winning bond numbers is generated separately by ERNIE. NS&I do randomness checks to make sure there is no favouritism. Of course large blocks attract more prizes than small ones just because of higher numbers in the block. Has to be said, though. Andy knows a couple of exceptionally lucky people.

@maxmander 20 күн бұрын

I've gone back into premium bonds only because I am starting to earn too much interest in my savings as a higher rate tax payer and I am maxing out my Stocks and Shares ISA. Could have contributed to a SIPP but happy to keep my money liquid for a potential downpayment / car in the future. I only have £5k in Premium bonds so far, so the prize rate return will be less but hopefully it is more than 60% (after 40% tax) of what I would have otherwise been taxed on in my savings account

@jimdavies Ай бұрын

Last year I got 7%. This year 3%

@peterburgess980 Ай бұрын

Another element you forgot to mention is that although the winnings from premium bonds is tax free, the money that you have won will be liable to tax unless you keep it in a current account or similar not paying any interest. But I guess with a big win then that’s a nice dilemma to have.

@MrDuncl 26 күн бұрын

He did discuss that in detail at the end. However, people seem to be stuck in the mindset that the £1000 tax free saving allowance is still adequate. £50000 at 4% interest is double that..

@SouthernMonkey1000 Ай бұрын

If you win £1m it’s tax free right ? But it comes into your estate and presumably will be slammed by inheritance tax ?

@Charlie0106 Ай бұрын

Nope all tax free

@SW-ok8qr Ай бұрын

Thats the least of your worries 😂

@alangordon3283 28 күн бұрын

🙄 spend it then.

@stevenclarke1737 27 күн бұрын

@@Charlie0106 I think he is talking about his family when he dies

@pjosiahjoseph6730 Ай бұрын

Everyone is winner with the S&P500

@TheVanderfulLife Ай бұрын

Until we're not

@T-ROY90 Ай бұрын

😅

@equitydealer-xw7mj Ай бұрын

Correct, S&P 500 has returned over 27% this year, if held in an ISA/SIPP beats the return that saver 3 got

@d.w.evans1182 Ай бұрын

@@equitydealer-xw7mjbut what happens if it goes down? It’s no longer 27% up then is it, it’s only worth what the s&p is at the moment, you have to sell it when its up to really benefit and then you don’t have it any more right?

@pedroelpintor.7772 Ай бұрын

And warren buffett is selling stock.

@andrewmeasures2312 Ай бұрын

Interesting comparison Andy. Thanks for sharing it with us. My bonds returned 5.2% tax free so I'm well pleased.

@Mr.NobodyWorld 18 күн бұрын

does the value of your money change according to the status of bonds when you want to cash out?

@bionic909 Ай бұрын

Are you accounting for the tax you need to pay on interest earned in a savings account?

@Cody-z6w 26 күн бұрын

It's tax free

@bobbydazzler8620 Ай бұрын

Does it make any difference if it’s a £50k block Or in lesser amounts up to the £50k max?

@Law_Abiding_Citizen_ok Ай бұрын

No, every bond is treated as a separate number on draw day

@d.w.evans1182 Ай бұрын

Why is it that if you look at the list of high value winners there are hardly any winners from before the millennium, hardly any?

@markgratton8036 Ай бұрын

Did saver 1 put his money into bonds in multiple instalments and the others in one or two instalments?

@HazelBunnieNutLoops Ай бұрын

Time/amount in the draw is the only thing that makes a difference.

@denisedeakins4828 29 күн бұрын

HI, If you have the maximum amount in them, where do you suggest to put the winnings if you have used your ISA allowance for the year?

@MrDuncl 26 күн бұрын

I have been experimenting with short dated low yield Gilts which are supposedly almost tax free. DYOR I won't find out how they work out until Jan 2026

@bridiesmith5110 Ай бұрын

I cashed all my ob in, as I won nothing on them. My husband won £400 over 10 years.

@markcoldwell9000 Ай бұрын

How many were paying higher rate tax though?

@iannoble4854 Ай бұрын

Its tax free.

@greigjduncan Ай бұрын

@@iannoble4854that’s the point too

@cmdrthorium1554 Ай бұрын

Good so far, but does each saver have their bonds in one lump sum? or is there a different pattern (eg Saver has 50x£1000, or 100x £500?) of bond holding?

@Law_Abiding_Citizen_ok Ай бұрын

Makes no difference

@robertnairn7353 Ай бұрын

have kept a check on my premium bonds and I have had where need as good a luck as your 3 I had 50k in for about 15 yrs and I got around £1,200 and as low as £900 1 yr. I took out 10k to top up my work place pension as I had got fed up with the poor returns on the bonds even after the interest rate went up to 4%. I did have a check areas and saw Berkshire had lots more winners of high prize than where I live, but as you say if people have more disposable income they are more likely to put money into things like premium bond as they will put maximum amount into ISA then premium bond. is it better to put extra money in a work place pension as the government add to any money you put in.

@r1pperuk Ай бұрын

Put the money into a QQQ fund make 20% and tax free in an ISA. Not sure premium Bonds can compete on any level. So 10k up on a 50k investment ballpark.

@hotrod1935 Ай бұрын

I am defo saver 1 with my luck and its max in, in fact i am worse having checked😢 good job its play money 😂

@samteknic Ай бұрын

If a couple has £50k to invest in premium bonds, are they better doing the whole amount in one person’s name, or £25k each? Or does it make no difference statistically?

@notpolitics3424 Ай бұрын

What a good question! I'm not an expert, but I would say that the bonds being tax free it wouldn't make a difference. If the couple haven't maxed their isa allowance, then it would be better financially for them to max out their annual allowance before investing in bonds. As statistically, they are more likely to make a stronger return.

@tom24057 Ай бұрын

No difference

@MrDuncl 26 күн бұрын

The only difference I can think is that with £25K each you can have the prizes automatically reinvested. I did that from about £40K to £49K.

@Likeitorlumpit 26 күн бұрын

You could break it down better by explaining if they bought them in £100/ £500/ £1000 lumps sums etc

@alangordon3283 3 күн бұрын

Makes no difference .

@haroonvlogs5437 Ай бұрын

Now they all need to just open up a S&P500 chart and all three are net losers. I know it’s hindsight but S&P500 etf pays around 9% average a year . This year it’s up around 30%

@r1pperuk Ай бұрын

Good year for the magnificent 7. Helped me get a leg up!

@robertnairn7353 Ай бұрын

I had 50k in for about 15yrs and never got anything above 1300

@pagrant 19 күн бұрын

£10,000 is a good return

@WoodyWanderer Ай бұрын

Would it be worth putting 11k in or should I just stick to savings account ? Sounds like you only win if have 50k in

@Fernweh1965 Ай бұрын

I won £100-£400 frequently with 50k. 9 months with 11k now and I've won nothing. More money = greater chance. The 11k will be withdrawn in April to top up my ISA

@r1pperuk Ай бұрын

Put it into a Microsoft or Google within a tax free isa is what I'd do.

@WoodyWanderer Ай бұрын

@@r1pperuk what return you roughly looking for ?

@baidarius Ай бұрын

Got more that a year between 4k to 1k and nothing yet 0 wins...

@davidpinder2472 14 күн бұрын

Been in it 2 months 50k first month won £25 next month £150 . So at the moment its not great as i would get £186 in a saver even if i payed the tax id be better off at the moment.

@L.M143 Ай бұрын

I've never had Premium bonds. I think I'll start one with £10k see try my luck for some time. Just try, as it is easy access, so I can withdraw anytime.

@suesullivan5631 Ай бұрын

Let us know how you get on.

@L.M143 Ай бұрын

@suesullivan5631 hahaha been reading on it, so going to apply soon but only start 31st December, so that it can be in for whole month of January for February price draw. Will do February-April time!

@minimad8793 Ай бұрын

You could be the beginners luck winner :) 2 months in, bag the 100k at least. fingers crossed for you.

@L.M143 Ай бұрын

@minimad8793 aw thank you 😊

@greigjduncan Ай бұрын

Tax free makes a huge impact

@tradingrules2228 Ай бұрын

£25k in October - no winnings in November , £25 in December, let's see what happens in January

@mrfoameruk Ай бұрын

Why don’t they increase it to 100k

@HazelBunnieNutLoops Ай бұрын

They've just reduced the prize fund rate to slow down investment so doubling maximum holding would be counterproductive for their targets.

@MrDuncl 26 күн бұрын

Why would the Government want your money when they can just print their own ?

@Steven-qi4gm Ай бұрын

Saver 1 is gonna be sick after watching this 🤮

@alangordon3283 28 күн бұрын

Premium bonds are not an investment . It is somewhere to park money .

@Drummer1000George Ай бұрын

Your point is right and then you say at 7:02 that it's just a coincidence. It's not a coincidence because of things you just said. There's a perfectly understandable reason for it.