best way and time to buy Premium bond

Stonk

innovate wrote:

... but let's be serious - it's just a tad better than the lottery. How often have you won the lottery?

Just a tad?!!! It's a shedload better than the lottery. Someone with £30K invested ought to know the product better.

Your expected annual return from the lottery is 50%, i.e. you lose half your money. Moreover, the overwhelmingly vast majority of players get a much lower return that that. And you do not have to be particularly unlucky to end up with virtually zero.

Your expected annual return from Premium Bonds is 103%, i.e., you get all your money back, plus an extra 3%. Moreover, although this is skewed by the big prizes, almost all players get very close to that figure (about 102.8%). And nobody gets less than 100%.

manhattan

innovate wrote:

manhattan, don't take this the wrong way please, but can I have some of what you are smoking?

You can get 5% (ok, 3% or so after tax, but still at least three times more) by putting your money into a savings account. And some of it, you'd want to put into an ISA, to save yourself from tax.

I've got loadsa money (the max) in PBs myself because I fancy a flutter - but let's be serious - it's just a tad better than the lottery. How often have you won the lottery?

lol, i did get 5 numbers once! does that count? lol

even though you get around 5% in a high interest account,1% cashback would give you more of a return as it is 1% cashback on what you spend.

ie:

30k in a high interest account would give you around £100 for the month after tax.

30k of pb purchased from the halifax 1% cashback would give you £300,now ignore the chance of winning pb,if you then cash in your pbs,buy another 30k asap from your halifax 1% account again=£300 cashback again,and keep repeating this would work out nearly 3 times more than leaving the money in a high interest account.

im not sure that this would work with halifax/pb t&cs but it was just an idea.

now wheres that dodgy looking cigarette?

RustyShackleford

david78 wrote:

If you buy bonds by standing order the requirement to hold them for a full calander month doesn't apply. They just go in the next draw automatically.

I don't believe this is true, at least i can not see anything in NS&I's T&C about it. Would be nice if it was though.

Also you can just buy £50 per month by standing order (the £100 minimum doesn't apply). So there is some merit in the standing order idea.

Since a standing order is just a normal BACS transfer on a schedule i simply set up an online payment in my bank account and do a transfer everytime i have a spare £50 in my account. No worries about a payment coming out when i don't have the funds, and because you can buy £50 of bonds in this way the money doesn't have long to sit in my account tempting me to spend it.

innovate

manhattan, one major flaw in your argument is that nobody that I know of will pay you 1% cashback on any spend over £20K/annum. Apart from that, most cashbacks are on credit cards and you can't buy PBs with a credit card (other than indirectly, through an SBT, but that will not attract any cashback). And furthermore, if you withdraw your PB funds monthly, you will never go into any draw.

Also, would a Halifax Moneyback Current Account (0.5% credit interest rate, and min £1K deposit/month) be the best vehicle to make £100/pa with?

Shuff some of those dodgy fags over :snow_laug :santa2:

innovate

RustyShackleford wrote:

I don't believe this is true, at least i can not see anything in NS&I's T&C about it.

Neither can I....

"11. A Bond will be included in all draws in and from the second month after the month you buy it or where the Bond is purchased under an automatic prize reinvestment mandate (see paragraph 22) the month after you buy it, provided in each case that the Bond has not been repaid before the first day of that month."

manhattan

innovate wrote:

manhattan, one major flaw in your argument is that nobody that I know of will pay you 1% cashback on any spend over £20K/annum. Apart from that, most cashbacks are on credit cards and you can't buy PBs with a credit card (other than indirectly, through an SBT, but that will not attract any cashback). And furthermore, if you withdraw your PB funds monthly, you will never go into any draw.

Also, would a Halifax Moneyback Current Account (0.5% credit interest rate, and min £1K deposit/month) be the best vehicle to make £100/pa with?

Shuff some of those dodgy fags over :snow_laug :santa2:

hey im not after any winnings from the pb,i was just investigating the possibility of earning more than what i get from a high interest account.


i was looking into any possible loophole of somehow using the cashback system to earn more than the interest accounts.

im not stupid,my savings will stay where they are i wouldnt possibly move them unless there was an unlimited cashback scheme around that could be teamed up with buying pb's.

all i was trying to say that by buying 30k pb with the cashback deal then cashing the pb in asap,then keep repeating this idea would work out better than a 5% interest account by a mile! £300 everytime you re-purchase the max amount of pb.