Are Premium Bonds a good investment?

Question

Over the years I have managed to save up a few pennies in an ISA account. I am thinking about using some of my savings to buy around £500 to £1,000 of Premium Bonds. Do you think it is worth it or would I better off leaving my money in my ISA and and getting the gauranteed interest?? Thanks! x

Answer 1

premium bonds, unless you have £10/15,000+ it's a waste of time.

i've had £1000 in there for 4 years now. havnt got a penny out of it.

Answer 2

I've had 100 bonds for 36 years and never won a penny. I would leave my money in an ISA.

If you look at the premium bond winners the people who win most are the ones with thousands in bonds.

Answer 3

Leave it in the ISA. At least you are certain of a reasonable return. Premium Bonds are a waste of time in my view.  

Answer 4

Absolutely - although they don't earn any annual interest, they're infinitely safer as investments than the stock market.  Plus, the more you buy, the higher a chance you have of winning a significant cash prize.

Give it a go - there's no obligation to keep them as PBs, as you're not tied in to any contract, so you can remove them as soon as you want to if you think you're not getting sufficiant 'returns' on them.  See if the number of prizes/value of the prizes you win balences or exceeds how much money you'd guarantee to get in interest and, if after a year you're happy wth it, keep them!

Answer 5

Split your money between premium bonds and your ISA

You can always change this back again.

Potentially you can win a lot of money on premium bonds.

Answer 6

You would not call PBs good investment as you would not call the lottery a good investment.

Answer 7

youve more chance of winning the lottery!

Answer 8

Use the tool on the web site below to work out the odds for different amounts of bonds.

You can decide yourself whether the investment is good or bad

Answer 9

premium bonds are the best for investing your money, not only is your money safe, you are in with a chance of winning money, up to a million pound (if your lucky) and also is a good way of saving, you are allowed a maximum of 30k in bonds and can cash them in at any time. you have to buy one hundred pounds worth at any one time, although you are allowed to buy them in fifty pound units over the counter at any post office. winning bond numbers are drawn on the first of every month, if you're one of the lucky people to win one of the two one million pound prizes you will be notified by telephone, though if you win a smaller prize such as fifty pound it will be sent to you by post. good luck and happy investing