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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 but I wanted to see – how much do you really win on premium bonds? I have held my premium bonds for six full months of draws, well 7 actually as I got confused and postponed this post accidentally..! 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? Based on my holdings of £50,000.
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
Here is a little bit of evidence of the last few months premium bond wins, with my bond numbers removed:
£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%.
Also, because I forgot to post this last month I’ve got the 7th month of results to share with you!
Month 7 (January) £50. 2 x £25 prizes.
Have I been lucky?
I used the premium 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!
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.
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. 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.
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.
Wondering how I got £50,000 to buy the maximum holdings of premium bonds?
Last year I won a huge amount of money matched betting. This is some of it. That’s right, some of it. We also had nice holidays, had lovely days out and treated ourselves to a few new things.
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!
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