Premium bonds

johnofhertford

Paul_Herring wrote:

PB's are gambling - you're gambling with the interest you would have had, if it was in a savings account.

Remember that the value of £100 put in PB's a year ago will not equal the value of £100 this year due to inflation. You do not get your original stake back (well, you get the same number of pounds, but not the same value.)

Thank you for that, and may I award you the prize for most patronising response of the year. On that basis all investing is gambling.

johnofhertford

dunstonh wrote:

Which just highlights that you are better off with a savings account or proper investment.

By a "proper investment" do you mean one where you can also lose your capital and which earns IFAs commission?

kenshaz

johnofhertford wrote:

Premium bonds are not gambling, because there's no way that you can lose your stake.

But you lose equivalent to inflation every year,and your loss of interest,so I believe that equates to approx 7.5% a year ,and you think thats not gambling its certainly not saving or investing.A government tax might fit the bill

kenshaz

Paul_Herring wrote:

PB's are gambling - you're gambling with the interest you would have had, if it was in a savings account.

Remember that the value of £100 put in PB's a year ago will not equal the value of £100 this year due to inflation. You do not get your original stake back (well, you get the same number of pounds, but not the same value.)

Correct,but life would be boring if we did not at least take a chance with the interest to win big,only wish the government used the profit for the NHS

kenshaz

johnofhertford wrote:

Thank you for that, and may I award you the prize for most patronising response of the year. On that basis all investing is gambling.

Equities are gambling ,building societies are safe,the more the risk the higher the gain.

kenshaz

johnofhertford wrote:

Thank you for that, and may I award you the prize for most patronising response of the year. On that basis all investing is gambling.

I would not take it to heart,he is just serious,but means well

Gorgeous_George

exel1966 wrote:

Having said youself that you are a mug for holding PB's and they shouldn't be referred to on MSE , just why do you keep them and then mention them ?

Because I like a little gamble and I don't need to pretend that I'm 'investing' when I'm gambling.



GG

dunstonh

By a "proper investment" do you mean one where you can also lose your capital and which earns IFAs commission?

And what has commission got to do with anything on this thread?

You dont think that the Govt issue premium bonds because Gordon Brown believes in free love and free money do you?

You pay charges (not commission) on every product whether it is a savings account, premium bonds or an investment product. Whether those charges are implicit or explicit there is a profit margin built into them.

johnofhertford

The government issues premium bonds for the same reason as it runs all other National Savings products - to borrow money. It sets the rates of return according to how much it needs to borrow. It's simple economics.

Gorgeous_George

johnofhertford wrote:

The government issues premium bonds for the same reason as it runs all other National Savings products - to borrow money. It sets the rates of return according to how much it needs to borrow. It's simple economics.

I wish I could set up a rival to Premium Bonds. Guaranteed profits - perfect business plan.



GG