Comments on: When Ernie Became Scrooge: Why I Just Sold Most of My Premium Bonds

By: Nick

Nick — Thu, 03 Dec 2020 19:03:03 +0000

In reply to Lottie. Thanks, Lottie. Yes, my experience as a premium bond investor was disappointing too, and the prize fund interest rate has recently been cut again as well. The Family BS Windfall Bond does at least pay some interest, so even if you don't win a prize you should get some return. I note that they are currently closed to new investors though.

By: Lottie

Lottie — Wed, 02 Dec 2020 17:30:50 +0000

I was gifted premium bonds when I was born, and in the following 50 years I won nothing. Yes, that’s right, zip, nada, zilch, not a single miserable penny! When I had some inheritance from my parents, in view of the “pitiful” bank interest rate of the time (approx. 1.5%, oh yes, it looks good now, doesn’t it!?) I decided to do a test and invested a more considerable sum in premium bonds, keeping a tally of my winnings and comparing the them against that 1.5% interest rate minus tax. I ran the test for a year, this was around 2015, and my winnings were so small, they made that “pitiful” 1.5% look great. All money removed from NS&I, and I won’t be back. With things having reached a state I thought I’d never see in coronavirus-world, I’m considering a similar experiment with Family BS Windfall bond. I read the article hear with interest. As yet I’m undecided.

By: Nick

Nick — Tue, 07 Feb 2017 18:24:37 +0000

In reply to Caz. Thanks, Caz. Yes, that's true. And I see that they have just announced a further cut to the prize fund in May (post amended accordingly). For the time being I have left some of my money in premium bonds, but I can imagine I may withdraw the rest soon as well.

By: Caz

Caz — Tue, 07 Feb 2017 18:00:15 +0000

They certainly aren’t what they used to be! My folks always had money in premium bonds, so I likewise followed suit and kept a couple of hundred in there but over perhaps 8 years I’ve not won anything. Not a sausage. I think investing elsewhere, especially with a decent sum of money to ‘play’ with, is probably a more realistic idea if you want to increase your income. It’s such a shame that the prizes have dwindled and what was once a safe and intriguing way to keep your money safe and wait to see if you’re a prize-winner is no longer what it was.

By: Nick

Nick — Mon, 06 Feb 2017 16:12:26 +0000

In reply to maria@moneyprinciple. Thanks, Maria. I have an ISA with Nutmeg too and have been pleased with its performance. Not familiar with Scalable Capital, but I'll check it out. Thank you for the suggestions!

By: maria@moneyprinciple

maria@moneyprinciple — Mon, 06 Feb 2017 15:41:29 +0000

Nick, naturally it all depends on how keen you are on self managed investing. If I were you, I’ll get this money in Nutmeg (stocks and shares ISA; mine has been doing very well) and Scalable Capital. Just my two pennies worth :).