UK Premium Bonds

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Roger Van Zant
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UK Premium Bonds

Post by Roger Van Zant »

I am interested in buying UK premium bonds.
I am a UK citizen, still with an active bank account (NatWest) there. I have PR in Japan, and have been living here since 2005.
I only use my NatWest account for paying my Class 2 NI contributions each month, and up until last year, for repaying my student loans (now all paid off).
Has anyone else bought Premium Bonds from Japan?
Is the registration process easy/difficult?
Any advice would be appreciated.
Thanks.
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Roger Van Zant
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Re: UK Premium Bonds

Post by Roger Van Zant »

Well, straight away, I was confronted with this screen when I selected my country of residence as Japan:

https://ibb.co/Pgn3jPz

This makes me think it is indeed possible, but just more cumbersome than applying online?
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Re: UK Premium Bonds

Post by Beaglehound »

Roger Van Zant wrote: Tue Sep 27, 2022 2:01 pm Well, straight away, I was confronted with this screen when I selected my country of residence as Japan:

https://ibb.co/Pgn3jPz

This makes me think it is indeed possible, but just more cumbersome than applying online?
Yeah, I was thinking of setting up an NS&I savings account at one point, hit that roadblock and was not sufficiently motivated to carry on at the time. It is possible though I believe.
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Re: UK Premium Bonds

Post by Bushiman »

I've heard of UK Premium Bonds but did a quick Google on what they are and average payouts etc. and they don't look that great at all...
Have I missed something? What are the benefits? Is it just the thrill of trying to bag that million pounds?
This is one of the articles I read...
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Re: UK Premium Bonds

Post by RetireJapan »

Bushiman wrote: Wed Sep 28, 2022 4:14 am I've heard of UK Premium Bonds but did a quick Google on what they are and average payouts etc. and they don't look that great at all...
Have I missed something? What are the benefits? Is it just the thrill of trying to bag that million pounds?
This is one of the articles I read...
Premium Bonds are not something I would recommend to people other than as a fun little side/diversification thing. Very small chance of a big payout, but otherwise not much better than a bank account.
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Re: UK Premium Bonds

Post by goran »

Apologies for extremely novice question. (totally noob in terms of bonds)

Is this something similar to series I bonds in the US?
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Re: UK Premium Bonds

Post by Bushiman »

RetireJapan wrote: Wed Sep 28, 2022 5:51 am
Bushiman wrote: Wed Sep 28, 2022 4:14 am I've heard of UK Premium Bonds but did a quick Google on what they are and average payouts etc. and they don't look that great at all...
Have I missed something? What are the benefits? Is it just the thrill of trying to bag that million pounds?
This is one of the articles I read...
Premium Bonds are not something I would recommend to people other than as a fun little side/diversification thing. Very small chance of a big payout, but otherwise not much better than a bank account.
Thought as much...
Thanks for the info...
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Roger Van Zant
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Re: UK Premium Bonds

Post by Roger Van Zant »

RetireJapan wrote: Wed Sep 28, 2022 5:51 am
Bushiman wrote: Wed Sep 28, 2022 4:14 am I've heard of UK Premium Bonds but did a quick Google on what they are and average payouts etc. and they don't look that great at all...
Have I missed something? What are the benefits? Is it just the thrill of trying to bag that million pounds?
This is one of the articles I read...
Premium Bonds are not something I would recommend to people other than as a fun little side/diversification thing. Very small chance of a big payout, but otherwise not much better than a bank account.
You're right.
It's just for a bit of fun, and the thought that I might win a nice prize is enough to temporarily help me ignore the soul-crushing prospect of being in my job until the day I die. The odds have increased slightly though, due to the most recent changes:

https://www.moneysavingexpert.com/news/ ... bond-rate/

Even 50 quid or 100 quid makes a difference to me.
Investments:
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iDeCo (Monex) eMaxis Slim All Country ✓
新NISA (SBI) eMaxis Slim All Country ✓
Japanese pension (kosei nenkin) ✓
UK pension (Class 2 payer) ✓
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Re: UK Premium Bonds

Post by Bushiman »

Roger Van Zant wrote: Wed Sep 28, 2022 6:18 am
RetireJapan wrote: Wed Sep 28, 2022 5:51 am
Bushiman wrote: Wed Sep 28, 2022 4:14 am I've heard of UK Premium Bonds but did a quick Google on what they are and average payouts etc. and they don't look that great at all...
Have I missed something? What are the benefits? Is it just the thrill of trying to bag that million pounds?
This is one of the articles I read...
Premium Bonds are not something I would recommend to people other than as a fun little side/diversification thing. Very small chance of a big payout, but otherwise not much better than a bank account.
You're right.
It's just for a bit of fun, and the thought that I might win a nice prize is enough to temporarily help me ignore the soul-crushing prospect of being in my job until the day I die. The odds have increased slightly though, due to the most recent changes:

https://www.moneysavingexpert.com/news/ ... bond-rate/

Even 50 quid or 100 quid makes a difference to me.
Good luck!
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Re: UK Premium Bonds

Post by northSaver »

Roger Van Zant wrote: Wed Sep 28, 2022 6:18 am The odds have increased slightly though, due to the most recent changes:

https://www.moneysavingexpert.com/news/ ... bond-rate/
Yeah, I just noticed that today. 2.2% isn't bad at all... assuming you have average luck. It was only 1% in 2021. The last time I checked I was getting 1.6% annual return since I started in 2018. I seem to win more often than not, even if it's just £25. I think the most I won was £100 one month. Still hoping for the biggie :)

By the way, I know you can apply as a non-resident but I decided to apply using my Mum's address in the UK (which I normally visit at least once a year). It seemed easier, and I've never seen a big prize going to someone outside the UK! Not sure how much they'd care about it if I bagged a biggie. Worst case is they'd probably refuse to pay the prize and close my account. It's a risk worth taking I think.

Since my portfolio has a hefty cash allocation, I'm wondering about other options now that interest rates are rising. 2.2% is OK I think, and if you want higher you probably have to tie up your cash. NS&I are currently paying 3% for 3-year green bonds, and Conister Bank in the IoM are paying 4% for 3-year bonds. Pretty sure these rates will rise in Q4, so it's a waiting game. Meanwhile I can get instant access at 2.2% with the premium bonds.
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