Premium Bonds question.....

[Cartard]

Hi,

I have 125k left on my mortgage @ 5% and 25k cash offset against it so effectively I pay interest only on the 100k.

I had a thought today at having a go with the premium bonds putting the 25k in and seeing what happens, I know I'll have to pay the interest on the full 125k but what would be a reasonable expectation of winnings if I put in 25k with the idea of boosting it to the max 30k in the near future?

Can this please be left in the lounge please,

Ta

[Mobile Chicane]

In former years, someone with the maximum allocation and 'average luck' could expect a 5% return. Returns in the current economic climate are nowhere near that.

I have £30k in bonds and average £50 a month - a 2% return.

[ShadownINja]

Reasonable expected returns? 0.5%.

[Beardy10]

swerni said:

Don't bother. I've sold mine and put the money in the offset.

The return isn't worth it anymore

I agree...I've had them for 15 years or more and used to "win" a lot more and more significant amounts. Sometimes up to five £50 prizes a month. Now I get one or two £25 wins if I am lucky.

I need to get round to doing something with it.

[Tiggsy]

ShadownINja said:

Reasonable expected returns? 0.5%.

correct

[Peter101]

I had £10k in bonds for a year. I won, a whole £50. Waste of time!

[birdcage]

I have 30k, I have won nothing but it's my lunch money if everything goes tits up...

You will never win anything meaningful, or anything at all for that matter but you will never have to put it on your tax return or worry about anyone losing it.

BP pays a bigger dividend at 5.8% and the capital should be safe, buy in after the election to protect from capital erosion...