Premium Bond withdrawal & reinvestment

Money, investing, mutuals etc
planteria
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Premium Bond withdrawal & reinvestment

Post by planteria » Sun Nov 17 2019 3:58pm

we have some Premium Bonds and we're potentially looking at cashing some in, prior to the end of the year, and then reinvesting in the new year.

i've been looking on the NS&I site, and it doesn't seem entirely clear.. would it be best to leave the bonds in place until we're into December, and then reinvest in January? i think if we do that we'll miss both the December and January draws - does that seem right?
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Re: Premium Bond withdrawal & reinvestment

Post by Richard Frost » Sun Nov 17 2019 4:24pm

https://www.nsandi.com/premium-bonds
When do Bonds go into the draw?

Your Bonds become eligible for the draw one full calendar month after you buy them. So when you buy Bonds in November, they’ll be in every draw from January.
So as I read it, if you buy in January they will be in the draw from March. You will miss two months.

The draw is at the beginning of the month so if you cash out in December it will be in the draw for that month.

planteria
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Re: Premium Bond withdrawal & reinvestment

Post by planteria » Sun Nov 17 2019 6:19pm

with you, thank you William.. it's a shame to have to miss out in two draws really.. we'll try to leave as many in place as possible. i need to get hold of some Co-op Savings, for example, in advance.
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Re: Premium Bond withdrawal & reinvestment

Post by kevinchess1 » Sun Nov 17 2019 11:13pm

But why do you want to withdraw them and buy back in?
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Re: Premium Bond withdrawal & reinvestment

Post by AAAlphaThunder » Mon Nov 18 2019 7:48am

kevinchess1 wrote:
Sun Nov 17 2019 11:13pm
But why do you want to withdraw them and buy back in?
My guess is "need the money".
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Re: Premium Bond withdrawal & reinvestment

Post by blythburgh » Mon Nov 18 2019 10:44am

AAAlphaThunder wrote:
Mon Nov 18 2019 7:48am
kevinchess1 wrote:
Sun Nov 17 2019 11:13pm
But why do you want to withdraw them and buy back in?
My guess is "need the money".
My assumption as well but none of my business why you need money short term. But if you do then this is the best way as you are not spending money on interest payments and the odds are you will not win in those two months any significant amount
Keep smiling because the light at the end of someone's tunnel may be you, Ron Cheneler

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Re: Premium Bond withdrawal & reinvestment

Post by rayf » Mon Nov 18 2019 12:49pm

blythburgh wrote:
Mon Nov 18 2019 10:44am

My assumption as well but none of my business why you need money short term. But if you do then this is the best way as you are not spending money on interest payments and the odds are you will not win in those two months any significant amount
But...if you don't need the money - don't do it. There is no other advantage. :)

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Re: Premium Bond withdrawal & reinvestment

Post by planteria » Mon Nov 18 2019 7:54pm

yes, 'need the money' short term. need to repay a loan in December but can re-borrow again in January.
it does seem a shame to miss out on draws for two months when we only need the cash for a few days, but i can't see any way round it, and will work out how little we can get away with cashing in.

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Re: Premium Bond withdrawal & reinvestment

Post by Sarah » Sun Feb 09 2020 7:46am

The minimum investment or top-up for Premium Bonds has now been reduced to just £25.

http://nsandi.com/25
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Re: Premium Bond withdrawal & reinvestment

Post by planteria » Sun Feb 09 2020 10:42am

greater flexibility is positive.
fwiw i didn't cash any in before the year end, after all. as it stands i will cash all of my PBs in during December this year though.
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