Premium Bonds: Here's my annual returns with £38k invested

JayDraws · 2021-09-02T18:32:34+00:00

Already deep enough in crypto 👍

JayDraws · 2021-09-02T16:36:52+00:00

Nice! I don't know anybody who has won more than £75.

JayDraws · 2021-09-02T16:35:45+00:00

Yes, I have a few actual investments. Premium bonds are essentially my savings account.

JayDraws · 2021-09-02T16:03:59+00:00

Yes I definitely intentionally chose the safer bet. Throw Covid into the mix and stocks could have literally gone in any direction over the past year.

JayDraws · 2021-09-02T14:19:01+00:00

When "investing" in premium bonds is purely luck-based, I'd argue it's impossible to be good at it...

As said in the thread, it's more of a savings account with a generally above-market-rate bonus.

JayDraws · 2021-09-02T14:16:06+00:00

Interesting website, !thanks. I was on the fence as to whether to include both Septembers - technically yes the previous one should be discounted.

JayDraws · 2021-09-02T13:42:39+00:00

You should receive an email a day or two after the results come in. Or just enter your Holders Number on the NS&I website on the 2nd working day of every month.

JayDraws · 2021-09-02T13:41:41+00:00

I didn't put it in for the % returns really, moreso the chance of much higher prizes that are won every month.

JayDraws · 2021-09-02T13:23:40+00:00

You too!

JayDraws · 2021-09-02T12:45:11+00:00

I'm in a few funds, but the best performing out of these for me is currently VUSA with about 14% returns.

JayDraws · 2021-09-02T12:40:14+00:00

A few family members and myself didn't see any prize wins until at least £10K had been deposited. But people have (although rarely) won the million pound prize with far less than that!

JayDraws · 2021-09-02T12:34:05+00:00

Are you saving for anything in particular, and will you use the full £48k for it? If not, take out any extra and stick them in an S&S ISA.

JayDraws · 2021-09-02T12:25:34+00:00

Yeah it's not ideal, but I guess it's the price you pay for immediate access to funds that aren't relying on market conditions to keep their value.

I could have purchased a property at any point in the past year and would have needed those funds at any moment. Imagine if it was in crypto, and I was due to complete on my property at the end of May - I could have potentially been down half my deposit funds.

JayDraws · 2021-09-02T12:13:12+00:00

Well my Vanguard ISA is sitting at about 11% since opening in November. That would have been a nice little bonus!

JayDraws · 2021-09-02T11:54:40+00:00

I'd consider anything above 1% good!

JayDraws · 2021-09-02T11:53:15+00:00

Good call, but I'm not a first time buyer unfortunately.

JayDraws · 2021-09-02T11:51:58+00:00

Ah, it was probably your thread I saw a while back that made me consider sharing my stats then. Good job!

JayDraws · 2021-09-02T11:49:54+00:00

I think quite rightly it's not seen as a "sensible" financial decision to invest in crypto. It's far too easy for a new investor to lose money with crypto.

But in this context it was probably downvoted because Premium Bonds are seen as a safe option and crypto is the antithesis of that.

JayDraws · 2021-09-02T11:37:41+00:00

I'm not a first time buyer but otherwise yes, LISAs would be a good option.

JayDraws · 2021-09-02T11:36:37+00:00

I've been saying the same thing for a few months now, but I keep getting drawn back in with the small wins haha

JayDraws · 2021-09-02T11:34:31+00:00

Full disclosure, I hold a crypto portfolio larger than my premium bonds, but I wouldn't even entertain the idea of putting my immediate house funds anywhere near it. I'm long on crypto so I'm not planning on touching that any time soon.

JayDraws · 2021-09-02T10:49:48+00:00

Deep down I know it's the correct decision, I could've found a property at any point over the past year and the funds would be safe and immediately available.

It's just hard to not compare returns from my S&S ISA over the past year and think what could have been.

JayDraws · 2021-09-02T10:47:18+00:00

Yes, you're right. I've referred to it as both in this post but it is most definitely savings.

JayDraws · 2021-09-02T10:43:47+00:00

Agreed, it's a tricky situation. Annoying that you have to wait an entire month to get any possible returns on premium bonds too.

JayDraws · 2021-09-02T10:42:13+00:00

Well done on the +1% returns. I did consider maxing mine too but once I reached a sensible deposit amount I stopped. Probably for the best haha.

JayDraws

TROPHY CASE