Premium bonds- can you lose your money?

[Deleted User][Deleted User] Posts: 4,391
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I have been saving for a few years and now have a decent amount. Its in an ISA at the moment but the interest is not worth it.

If I put all of the money into a bond, can I get the money back at anytime and would I lose anything?

I know inflation will decrease the value of it over time.\

But if I were to put in £2000, can I take the £2000 a year later without losing any of it.

Cheers.

The only reason I want to do it because you can win money, the odds are lower the more you put it. About 1 in 200,000 of winning £1000 each month. Quite good I think.;)

EDIT:
I am being thick, all info is here:

http://www.nsandi.com/savings-premium-bonds

Mods please delete.

Comments

  • [Deleted User][Deleted User] Posts: 310
    Forum Member
    Just google it and get the answers on the first hit.
  • TelevisionUserTelevisionUser Posts: 41,404
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    It's perfectly safe but the only thing is the capital sum invested will depreciate with inflation. It also seems that probability only really starts to work in your favour when you have £20k-£30k of bounds: http://www.moneysavingexpert.com/savings/premium-bonds-calculator/

    If you have 5k in savings with the Halifax then you get entered into their monthly prize draw - http://www.halifax.co.uk/savings/savers-prize-draw/

    Mind you, the interest on their savings accounts, as with any other bank these days, is pretty poor.
  • Galaxy266Galaxy266 Posts: 7,049
    Forum Member
    In my own experience you are very unlikely to do anything wonderful with Premium Bonds, I'm afraid. Like saving interest rates all bond prizes have been drastically cut, in line with the reduction in rates.

    It's up to you, OP, but I would think very carefully.
  • michael37michael37 Posts: 2,622
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    You cannot lose your money on Premium Bonds - you are actually lending money to the government and unless the country goes bust they will always be able to pay you back.
  • John259John259 Posts: 28,327
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    The nominal rate of interest with Premium Bonds is 1.30% at the moment, but because the big winners take a lot of the prize money, the average for everyone else is somewhat lower.

    Six months ago an interest rate of 1.30% would have been regarded as poor. Today it's actually quite good, especially as it's free of tax. You can do better, but only if you're prepared to tie up your money for several years in a fixed term account.
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