How much do you really win on premium bonds? What I won with £50k of them!

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So, last year I made lots of nice monies. I took some of that nice monies and I invested it into premium bonds. I have the maximum holding, £50,000. My husband has some holdings too, but not the same as me. We don’t hold all of our money in premium bonds, as we have some in cash ISAs, but I wanted to see – how much do you really win on premium bonds? I have held my bonds for 12 full months of draws! I’m going to share with you my results so you can get an idea – how much do you really win on premium bonds?! Now, this is based on my own luck, of course, and will vary from person to person. It is luck based. But I seem to be pretty lucky these days. 

how much do you really win on premium bonds - Find out now!

How much do you really win on premium bonds? Based on my holdings of £50,000.

how much do you really win on premium bonds

I bought my holdings in May, this means that the first draw they were included in was July. I was really surprised that my bank just allowed me to process a £50,000 debit card transaction but there you go..! 

Month 1 (July results) £50. 2 x £25 prizes

Month 2 (August results) £125. £25 + £100 prizes

Month 3 (September results) £50. 2 x £25 prizes

Month 4 (October results) £75. 3 x £25 prizes

Month 5 (November results) £75. 3 x £25 prizes

Month 6 (December results) £100. 4 x £25 prizes

Month 7 (January results) £50. 2 x £25 prizes

Month 8 (February results) £0

Month 9 (March results) £75. 3 x £25 prizes

Month 10 (April results) £50. 2 x £25 prizes

Month 11 (May results) £0

Month 12 (June results) £25. 1 x £25 prize

Here is a little bit of evidence of some of my premium bond wins, with my bond holders number removed for security:

how much do you really win on premium bonds - a look at my winnings

£475 won in 6 months. This is almost at the amount I would have been expected to win in a year, at 1.15%. However, now the amount of money in the prize fund is 1.40%.

£675 won in 12 months. This is £25 below the 1.4% rate, however, the rate changed mid year. 

Have I been lucky?

I used the bond probability calculator over on MSE and it said this for me:

You are lucky – only 9.16% of people who have put £50000 in premium bonds over 6 months win more than £450.

So there you have it. Pretty lucky. Not surprising to me as I’ve had a lucky couple of years. Interestingly I look at £900 after 12 months and it said this:

You are lucky – only 7.49% of people who have put £50000 in premium bonds over 1 year win more than £900.

So I’ll be assuming that the next 6 months will be less profitable..! I may report back in another 5 months to let you know!

Update – As you can see from the above I’ve been less lucky in the second 6 months.

You are lucky – only 35.7% of people who have put £50000 in premium bonds over 1 year win more than £675. So no longer am I really much above the average luck! 

How do you cash in premium bonds?

As I hold the maximum holding when I receive my winnings they go to my bank account. I then save these elsewhere to maximise my returns. If you want to cash in your bonds, at any time, you can do this online, or by phone. An advisor at NS&I (National Savings and Investments) previously advised me that when I want to close our accounts, and withdraw all of the money from our premium bonds, that I should leave £1 behind. This would save my account going through a larger auditing process and would mean that my money would arrive quicker.

I did withdraw money from one of our premium bond accounts before, to see how long it would take, and the money arrived within 2-3 working days, which was prompt enough. We’ll be withdrawing our premium bonds when we move house so I’m quite confident that we’ll only need a weeks notice for our money to arrive.

Are premium bonds tax-free?

Yes! Premium bonds are entered into a monthly prize draw and there is a chance to win tax-free prizes worth £25 and upwards. Obviously, the value of my premium bonds will reduce over time with inflation. However, I’m saving my winnings and saving more money elsewhere so I’m feeling pretty confident about how I’ve invested some of our money.

You do not need to list the income that you generate from your premium bonds on your tax return like you would with a savings account. This is fantastic for me as it is one less thing to faff around with when I’m completing my tax return. Also, it means I don’t have to worry if I do want to indulge myself and spend the winnings on a treat for my family, as I don’t need to put the tax by, or worry about forgetting!

What is the minimum you can invest in premium bonds?

£100. Not bad really. I know some people with £100 who have NEVER won. Then again I know people with £100 who have had a handful of £25 prizes, which is really unlikely to happen. I believe you can also set up a standing order, possibly for a smaller amount, but I’m talking about outright purchasing premium bonds just by logging into the website or giving them a call.

Wondering how I got £50,000 to buy premium bonds?

In the last few years, I have won a huge amount of money matched betting. This is some of it. That’s right, some of itWe also had nice holidays, had lovely days out and treated ourselves to a few new things. We’ve been able to buy a car, not worry about job security and generally just feel much happier in our lives knowing that we have this money sitting in premium bonds. We’ve even started investing for our daughter now, in the hope that one day she’ll have a huge win with her premium bonds!

I’ve also made money from all my usual favourite ways to make money online. I’m careful with our money these days. We do enjoy some nice treats but we also work on being frugal and saving hard. Since I started this post we’ve been saving all of these winnings and other money too. All to complete our goal to be mortgage free before 40. Looks like it is going to be a breeze now!

The main downside to premium bonds, besides the fact it is ultimately a lottery, is seeing all of the unclaimed prizes. I wish they would do something else to ensure that everyone receives their prizes. Also, the odds of winning is obviously lowered the less you hold. I think the sweet spot is around £20,000 from what I’ve read online. However, the number of prizes is huge, so we have a win most months which is great.

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how much do you really win on premium bonds? Money making, money saving, investments, prize draw, competitions. Find out how much money I really won when I put £50,000 into premium bonds

36 Responses

  1. Nyomi January 13, 2018 / 9:19 pm

    Wow, such a lot of money!! Have you done a post on how much you earned last year and from where. Probably nosey but I’d kill to see it as I know it’s mega and you are making me think I should be doing matched betting!!

  2. Margaret GALLAGHER January 13, 2018 / 10:09 pm

    Wow my dads been fairly lucky with these over the years
    TIME i made a stand too

    • katykicker January 13, 2018 / 10:35 pm

      Really glad to hear that. Lovely to win something isn’t it!

  3. Sarah January 13, 2018 / 10:51 pm

    Wow that’s fabulous. I have a very small 8k in mine and had it about a year only won £25…. if I make lots of nice monies I shall invest more. Xx

    • katykicker January 16, 2018 / 6:26 pm

      £8k is absolutely not small. Fantastic and hope you have a big win soon! x

  4. Angela Milnes January 13, 2018 / 11:17 pm

    It’s really interesting. I have never tried this but then I don’t have any cash to invest at the minute ha ha! Good to know though!

  5. Cat Williams January 14, 2018 / 1:23 am

    We have a few and get the odd £25 here and there, it always seems to work out more than the interest we’d get so I can’t complain.

    I must gave MBing a go again. We made £1000 from it last year but just found it so time consuming. I suppose it is worth the effort though.

  6. Chloe (Sorry About The Mess) January 14, 2018 / 8:39 am

    I have the lowest amount of premium bonds (a godparent bought them for me when I was a child), and in all that time I’ve won once – £50. That seems to be quite lucky according to what you said!

    • katykicker January 16, 2018 / 6:28 pm

      Yeah, it sounds lucky! Make sure you keep your details up to date too just in case that big win comes along!

  7. Dave January 14, 2018 / 12:12 pm

    Great to hear, and not surprising to me either! I’m expecting you’ll be in the top 0.0001% at some point. Just a matter of time! 🙂

    • katykicker January 16, 2018 / 6:28 pm

      Haha Dave I REALLY hope so! x

  8. The Reverend @ www.thereverend.co.uk January 14, 2018 / 2:51 pm

    Hi Katy,

    I have wondered this for a while but if you have the max deposit, can you still auto-enroll your winnings or do they have to send you a cheque/pay your bank?

    I’m slowly building up my Premium Bond holdings as a more exciting ‘penny jar’ – I think this is a good way to look at Premium bond as they aren’t really an investment account.

    • katykicker January 16, 2018 / 6:29 pm

      When you hit 50k they pop winnings in your bank x

  9. jan hawkins January 17, 2018 / 11:54 pm

    I hope you soon win the big amount, make all your dreams come true, you deserve it you help others, do random acts of kindness, and most of all you never ask for anything in return. Good luck darling. xxxx

  10. SHB January 18, 2018 / 4:59 pm

    Having received £100,000 from a house sale I also invested £50,000 in Premium Bonds and £50,000 in a savings account which was paying at the time £21 interest a month Nov 2015.. My thinking for the bonds was that if I won £25 each month I would be doing ok. Within just a few months the savings rate dropped so I was getting just £10 a month on the savings – needless to say that money got moved! The Premium bonds however to date (Jan 18) at £25 a month I am up to April 2020! Have won most months and often 2 or 3 £25’s and still have the chance of the £1000,0000 – Well you never know!

    • katykicker January 20, 2018 / 11:12 am

      That’s fantastic – thanks so much for sharing! Good luck for the £1,000,000!

  11. Rachel January 19, 2018 / 5:02 pm

    How lovely to be so lucky, some nice wins! I’ll be interested to see how much you win if you invest for the rest of the year….please do update your post 🙂

    • katykicker January 20, 2018 / 11:16 am

      Thanks Rachel! I’ll be sure to share another one in 5 months time when I’ve got 12 months under my belt! x

  12. Joleisa April 3, 2018 / 1:32 pm

    Premium Bonds! One more thing for me to look into to put my little money. What I didn’t get is: Can you lose some of the money you have put in?

    • katykicker April 10, 2018 / 9:13 am

      No, not at all! x

  13. Angela Harvey April 10, 2018 / 4:56 pm

    I had a small holding of Premium bonds a few pounds for over 50 years never won a bean. Added a few hundred a few years ago and won for the first time £25 this year. Patience is the thing here. Good luck everyone, we have to be in it to win it.

    • katykicker April 11, 2018 / 11:05 am

      Well done Angela, hope your luck continues!

  14. Linda Maddison April 10, 2018 / 11:04 pm

    I invested £35,000 in Premium Bonds & won £550 over 15 months, I’ve now withdrawn £20,000 & invested in 2 Windfall Bonds which earn 5% interest, the wins aren’t as big, but enough for me, £1,000, £10,000 & £50,000, the least you can invest is £10.000, but the chance of winning is much higher than Premium Bonds & I’ll have £100 interest at the end of the year.

    • katykicker April 11, 2018 / 11:04 am

      Hi Linda, I’ve removed the link to the bonds you’ve mentioned but I did have a look first. I can’t see 5% interest, only 0.50% interest. As the maximum prize fund is only £80,000, regardless of the amount of bonds sold, I’d be a bit wary personally, as I like to know the exact % amount being put into the prize fund. Still, £100 back on your £20,000 isn’t bad is it!

      • Linda Maddison April 11, 2018 / 11:45 am

        Sorry I forgot to put the 0. before the 5% Katy, I wish it was 5% 🙂 I didn’t mean to mislead anyone, but it is still nice to get some interest on the bonds unlike Premium Bonds where your money doesn’t increase unless you win, unfortunately the Premium Bonds I withdrew to buy the Windfall Bonds were the ones with the regular winning numbers, so haven’t won anything on the remaining bonds the last 2 months, my Windfall Bonds will be entered into the draw for the first time on 16th April, so fingers crossed, & thanks for mentioning the free lotto, I signed up yesterday 🙂

        • katykicker April 11, 2018 / 11:55 am

          Oh, you’re fine, I didn’t think you were being deliberately misleading, as you did put the right amount of £s of interest!

          Hope you have a big win soon!

  15. Caz / InvisiblyMe April 14, 2018 / 3:02 am

    An interesting read! Premium bonds certainly aren’t what they used to be. I’m glad you’ve done so well with that larger lump sum in the first few months. I’ve had a much smaller amount in comparison but held them for quite a few years… won absolutely nada!

    • katykicker April 14, 2018 / 6:21 am

      I get a lot of people telling me they’ve held say £100 or £1000 and NEVER won, and given the time they’ve held them that’s below average. I think the sweet spot is about £20,000!

  16. John June 8, 2018 / 11:24 am

    You’ve definitely done well I’d say! If you are happy with the investment then its great. No risk as you say….

    Congrats on the wins! I only have a small holding but I am yet to win anything 🙁

    • katykicker June 13, 2018 / 8:30 am

      It hasn’t gone quite so well for the next six months – so there will be an update coming soon!

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