NS&I Premium Bonds are a savings account in which you can deposit (and withdraw) money, and the interest paid is determined by a monthly prize draw. Your odds of winning increase as you buy more bonds since each one has an equal probability of winning.
With more than 21 million individuals investing more than £118 billion in Premium Bonds, they’re the UK’s most popular savings product.
What is the best day of the month to buy premium bonds?
You can purchase bonds at any point in June and have them eligible for the drawing starting in August.
The final week of the month is the ideal time to transfer money from another savings account since you’ll be minimizing the time the funds aren’t generating interest or being eligible for Premium Bonds.
What are the odds of winning premium bonds with 50,000
Your odds of winning improve to one in 81,458 if you have a maximum of £50,000 invested in bonds. If you invest £50,000, your chances of winning are 1 in 3,811,777,478.
Each one-pound bond has the same chance of winning as the next. Therefore, if you want to increase your chances of winning the monthly prize draw, the more you spend, the better your chances will be.
The two individuals awarded the prize in June 2022 had 10,001 pounds and 50,000 pounds in premium bonds.
Don’t get too caught up in daydreams of buying a house, a vehicle, or quitting your work just yet if you win a significant amount of money from a Premium Bond.
Know the chances of winning on premium bonds with 30,000
If you invest £30,000, your chances of winning are 1 in 161,726.
The Premium Bonds prize money rate offered by NS&I will become more generous, allowing investors to win an extra 1.4 million monthly prizes that are exempt from taxation.
Beginning in June 2022, the rate at which the prize money is accessed from Premium Bonds will increase from 1.00 percent to 1.40 percent.
How I can increase my chances of winning Premium Bonds?
When you win Premium Bonds, instead of receiving the cash prize, you can simply arrange for the money to be reinvested (unless you currently possess the maximum amount of £50,000).
Put another way; your money will be used to purchase other bonds. That adds more chips to your stack, raising the odds of you coming out on top.
Final Thoughts
You can only save money in Premium Bonds by being lucky or by using up all of your personal savings allowance, your cash ISA allocation, and the maximum in today’s top 1.5% savings account (though here, I would say that putting money in fixed-rate accounts is likely to be better than Premium Bonds).
However, Premium Bonds are all about your mindset. There’s nothing wrong with putting a little amount of your money into them, even if the returns aren’t great, as long as you know it’s more for enjoyment than profit.
Use the calculator to see the actual chances before making a decision. You can take the risk if you’re willing to do so.
