Premium bonds

johnofhertford

So why don't you? If it's guranteed profits and a perfect business plan then you can't lose.

kenshaz

johnofhertford wrote:

So why don't you? If it's guranteed profits and a perfect business plan then you can't lose.

Because he does not have the power of a government,but do not let the sceptics disillusion you ,when you win they will be wishing they where speculative.He who dares wins.Who cares ,the profits are for the benefit of the nation

Mercenary

Paul_Herring wrote:

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.)

That's very true! I bought £100-worth of PBs 27 years ago and that £100 was an entire month's wages back then.

I've only ever won once (£50 so at least I got some return ) and if I cashed them in now ...well, £100 today isn't even near the equivalent value of what I 'invested' back then :eek:

ReportInvestor

Yep. The government would tax GG both on his profits and probably on any winnings paid out. HM Treasury wouldn't want to lose a profitable subsidised monopoly :rolleyes:.

On a related note, I doubt the banks and BSs are particularly pleased at the moment with the NSI 5.3% top paying straighforward ISA. It's just not fair .

I still marvel at the heat generated on MSE by PBs, though.

Jake'sGran

shazkhan111 wrote:

I was reading the Sun money section yesterday....and it said that if you buy £100 worth of Premium bonds you have 100 chances of winning a prize in a month thats 1200 chances a year.....it went on to say that the same chances on the lottery would cost £1200.

So I came home and bought £100 worth of Premium Bonds online.....even though I have never been a fan....as I know lots of people who have PBs worth £30000 and they get about £300 a month nothing more..

Is the Sun's article correct?? If it is we should all have £100 worth ....you never know!

The Lottery is a fool's game. I have £13000 in Premium Bonds and have won a prize every month but one so far this year and all but one for only £50. The other was £100. They are reinvested altomatically which means the new money goes back in the draw for the next month instead of having to wait another month as with new bond money. This is how my original £10,000 became the above figure but I did buy them a long time ago. Still, it's a little punt and the original money is safe.

ReportInvestor

Jake'sGran wrote:

The Lottery is a fool's game.

I totally agree and shall never buy a ticket.

But maybe it has its place in Gordon's crazy world of means tested allowances, where it sometimes seems perverse for less well off sections of society to consider saving at all?

Premium bonds? It's really not a big issue either way.

asdaprice

My family all have a small holding of PBs

We have had the following;

EVERY member of the family (except me, it was my dad, mum, sis, bro-in-law and uncle!) winning £50 on the same day - that's 5 people
My child's bond winning the first month it was in the draw - purchase was £100, prize was £50 (on just one of the bonds, potentially she could have won on all 100!)
My uncle winning twice after his death
My other uncle doing the same
My father's Bonds being cashed in after his death, were repaid to his family along with a letter saying he'd won £50 in the last draw they were in

Okay it may be gambling the interest but the cheques come in pretty regularly and its a bit of fun, as the above demonstrates

coconut_3

I Bought £60,000 premium bonds one year ago and my wife who did not fancy a gamble put £60,000 in a 5% building society account at the same time. assuming she gets 4% after tax I am ahead of her in the first year by £250. I will post the progress after another 12 months

ReportInvestor

I thought you could only have £30K?

Did you use your wife's allowance?

Could you post whether you won more with your wife's bonds or your own ?

whambamboo

asdaprice wrote:

My family all have a small holding of PBs

We have had the following;

EVERY member of the family (except me, it was my dad, mum, sis, bro-in-law and uncle!) winning £50 on the same day - that's 5 people
My child's bond winning the first month it was in the draw - purchase was £100, prize was £50 (on just one of the bonds, potentially she could have won on all 100!)
My uncle winning twice after his death
My other uncle doing the same
My father's Bonds being cashed in after his death, were repaid to his family along with a letter saying he'd won £50 in the last draw they were in

Okay it may be gambling the interest but the cheques come in pretty regularly and its a bit of fun, as the above demonstrates

yes indeed. The key is that you get a letter saying 'you've won'. And it's £50, great, let's go spend it. However, if you had £1000 in the bank you wouldn't get excited that you'd got £50 interest.

there is also zero chance of winning on all 100 bonds (or close to zero).

(1/24000)^100 is about 0.0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000001

Anyway, premium bonds are not that bad a return (except for non taxpayers), and you might win a million, if that makes you excited, then get some

Anecdotal reports of how much you've won are irrelevant, the real thing that matters is how much they pay out as prizes - just over 3%