NS&I or National Savings and Investments Premium Bonds are the most popular investment in the UK. Lets take a look at if they are worth it.
NS&I Premium bonds are held by 1 in 3 UK adults and have a total combined worth of over 90 Billion Pounds. Premium bonds have existed for decades but are they still worth using today?
In the video we go over the following topics:
Who are National savings and investment?
Whats are premium bonds?
Are premium bonds secure?
The tax implications if you win?
The Odds of winning with Premium Bonds?
Do i use Premium bonds?
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🕘Timestamps:
00:00 Intro
00:16 Who are NS&I
00:50 What are Premium Bonds?
2:27 Are Premium bonds safe?
3:03 Are Premium bonds Taxed?
4:10 What are the odds?
7:02 Should we use premium bonds?
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Any information provided in this video is meant purely for entertainment purposes and does not constitute any form of recommendation, They are simply my opinions. If you want financial advice tailored to your circumstances please consult with a licensed professional….(read more)
LEARN MORE ABOUT: Treasury Inflation Protected Securities
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NS&I Premium Bonds: The Easiest Way to Become a Millionaire?
Everyone dreams of becoming a millionaire, but not everyone is fortunate enough to achieve this lofty goal. However, there is a unique investment opportunity that promises a chance to win big without any risk to your capital. Introducing NS&I Premium Bonds, a government-backed savings product that has gained immense popularity for its potential to turn ordinary individuals into millionaires.
So, what exactly are NS&I Premium Bonds? In simple terms, they are a type of savings bond that you purchase from the UK’s National Savings and Investments (NS&I). Unlike traditional savings accounts that offer interest rates, Premium Bonds don’t provide regular interest payments. Instead, the money you invest is entered into a monthly random prize draw, with the chance to win tax-free cash prizes ranging from £25 to a staggering £1 million.
The allure of NS&I Premium Bonds lies in their simplicity and lack of risk. Your investment is secured by the UK government, meaning you won’t lose your initial capital. Moreover, the prize draw winnings are completely tax-free, making these Bonds an attractive proposition for many eager investors.
One of the most enticing aspects of Premium Bonds is that anyone over the age of 16 can invest, from students to retirees. With a minimum investment of just £25 and a maximum limit of £50,000, they are accessible to a wide range of people. This flexibility allows investors to start small and gradually increase their holdings as they feel more comfortable.
It’s important to note that the odds of winning are not guaranteed, and your investment may not secure a prize immediately or at all. However, NS&I regularly adjusts the interest rates to ensure the prize fund remains competitive, making it an appealing venture for many risk-averse individuals seeking an alternative to traditional savings options.
For those considering investing in Premium Bonds, it’s essential to have realistic expectations. While becoming an overnight millionaire is an enticing thought, statistically, it is unlikely to happen. The odds of winning any prize in the monthly draw are currently 1 in 34,500 per £1 bond, which means that the more bonds you hold, the greater your chances of winning. To enhance the possibility of winning big, some investors choose to accumulate a significant amount in Premium Bonds over time.
Despite the seemingly low odds, Premium Bonds have created numerous millionaires over the years. In fact, as of 2021, there are over two million Premium Bond prizes yet to be claimed, totaling around £89 million. This highlights the potential windfall that awaits lucky bondholders, and even smaller prizes could still be significant boosts to one’s finances.
In conclusion, NS&I Premium Bonds offer ordinary individuals the chance to become millionaires without taking on any capital risk. While the odds of winning may be low, the allure of tax-free cash prizes and the security of government backing make them an attractive investment option. Whether you’re a seasoned investor or just starting your financial journey, NS&I Premium Bonds could be your ticket to a life-changing moment.
Got a question? Feel free to leave it in the comments.
The seem a complete rip off.
premium bonds are an investment for dreamers – great line.
The £5 of premium bonds bought for my brother and I in the early 60s are still waiting for ERNIE to draw our numbers and win anything. However, a similar sum invested for my friend Neil and his sister Heather won £25k a few years later, which bought them a house each when they reached 18. I think that it was a thing sixty years ago to give a young child. Maybe as I've recently become a grandad I should buy a couple of hundred quids worth for my grandson.
I'm pretty sure it is a con. I am aware of family members having exactly the same value of holding as their partners and they win exactly the same amount, whether zero, £25 or more, every month. Exactly the same denominations – everything. ERNIE is a myth
Have two NSIs accounts (wife an i) one is full second is now at 4k. We have had good returns most months. I would say we get about a 1.5% -3% return /year. 1 month we had multiple 25s, 50s and 100s. It made 60% of the years profits in one month.
Those eyes are staring into my soul
Started watching you a few months ago and really enjoying your content and insight I have learnt a lot from you .. thanks
1/3 of UK people like a bit of gambling
If I put in £4k and one month I win £25, can I reinvest it automatically into it, giving me 25 more chances to win the following month, and so on……. ?
Class!
Hi mate, hope your well,
Are NS&I bonds safe? I started putting some money into it and have noticed loads and loads of bad reviews saying people can’t get they’re money back out etc and I’m just wondering if I should pull everything out now (or at least try)
I know you won’t want to ‘tell me what to do’ but any advice given would be much appreciated!!
My granny bought about £500 of bonds when I was born. I still have them. I've probably won £25 three times in my life and I'm 40 next year haha
I'm also from Bury. STOP BUYING OUR HOUSES! I'm trying to get one and y'all keep pushing the prices up grrrr
can you still buy them at the post office? premium bonds
the thing i like its a lottery ticket for as long as you want it never lose money and not to have the hassle of picking the numbers every week
I love his videos, just super therapeutic and I subscribed❤
The way I see it, it's another place to diversify where you hold your cash in this often talked about "bail-in" world of ours.
oxfam scandal was hilarious to me since i know prostitution is active in soho in the same place year after year.
the hipocrisy. dirty hipocrisy.
pedigree dogs i tell u.
boycott uk now
So it’s like a savings account… but with a chance to win nice amounts of money? 😀
I could put it on scratch cards lol for nothing to show
I am not sure if I trust the government. The way the world is heading they might just decide to put restrictions on that money. As the WEF director said, "you will own nothing and you will be happy". We are heading towards communism
Great video. Every time I check the prize checker of all the winners generated monthly, it seems to suggest that buying in bulks increases the chances of winning, rather than just purchasing a little amount each month. I hardly see anyone winning a significant amount just purchasing in the double figures or even hundreds each month. Therefore would it not be better to just save your monthly premium bonds transfers to a bulk transfer into premium bonds, to increase the chances of winning a bigger prize?
Have you tried to call and get thru its a shocking service
Wanted to ask the question if you had more then 1 more premium bonds accounts would that increase your chances
I just won £25. on NS&I. What could be better?
Hey! Been following you a couple weeks now and your content in incredible! What are those “corporate bonds” you mentioned? I know there’s savings accounts, premium bonds, stocks etfs etc but keep hearing “bonds” and don’t know if that’s different to the stock market? Thanks ☺️ x
I wonder what the UK average holding is now since you made this video. Just curious why you chose £30 a month vice 25 or even 50.
Hey Damien, Well done on your vids, I always enjoy them; be that for the financial talk or that hearing your west mids accent takes me home! Do you work too or is this your full time gig?
dont invest in the uk they r shrude investors they left northen ireland and the falklands out to dry at active war with mainland. when it comes to crunch time they will bail out. leave u 4 dead. the future is going to b built on economic trust like ur credit scoring. they will lose out for sure.
china will cater to gen z value for money motif.
invest in asia
I don't know whether I am the luckiest or unluckiest premium bond buyer. I first bought bonds in 2018 and have won £25 or £50 almost every month. Never won any bigger prize. I do buy £100 every month and have not reach the maximum amount as yet.
Can you put in your whole emergency fund as a one off payment and your numbers will be entered every month? Or do you have to put money into the premier bonds regularly every month?
Given the low interest rates for Cash ISA and other easy saver accounts, PB seem like a great option for anyone that does not want to take risks and have easy access to its money, e.g. for emergency fund or house downpayment.
Hi Damien! Sorry to bother you again with more questions. I setup a stocks and shares ISA today. I have just remembered that I actually have a premium bonds account with NS&I. There isnt much in it but I presume its okay to have opened an ISA still. However, I wondered can I withdraw all my money from the bonds without it effecting anything regarding the ISA? i.e not being able to have 2 isa in the same year etc.. I am hoping it's fine but wanted to check with someone who knows this stuff better!
I always thought that Premium Bonds are exactly what you said – a lottery. Just a bit of fun if one can afford saving money there . By the way, I have just won £25 there :-D.
Thank you Damien
great video I could give it 2 thumbs up
I want to hit like but it's on 888 which is too perfect when you're talking about gambling
In my experience, these are a bit of a scam. I have invested a few times, and each time I will win £25 in the first two months (with 10k invested) and then nothing for the rest of the year. Their "random" algorithm seriously needs work. It seems like they let you win a couple of times to get you to think you will win much more often than you will. It also takes about 3 months before you are even entered into a draw. I bought the bonds in December and wasn't entered until Feb.
I would say they are better than nothing, but if you don't need access to that money for a good 10 years, you're better off with index funds.
In a nutshell, they are not worth it and there are much wiser places to put your money if you are trying to invest!!
What If you get an inheritance and stake 50,000 Pounds as a block, what are the chances of getting the 1 million? Thanks!
I just try to put in as much as I can that in comfortable putting in started off with £100 and now slowly I’ve kept putting more money into and now I have £1,200 so hopefully I’ll get lucky one day and win something out of it