Premium Bonds: Are they worth it? Discussion Area

doormanpgd

I purchased £1000 of Premium Bonds in March 2000 for my son who was 6 years old then, his total winnings to date in £50 prizes is £450. Not to bad an investment. Oh, and by the way the £1000 I invested for him was as the result of a £50,000 win I had, so I guess Premium Bonds for me are a good investment.

D P

Just checked through the winning bonds, and found another 1 in the wrong winners envelope, so as corrected, he's won £450 in total.

SheepLady_2

That's really good doorman - you'd think from all the previous posts that nobody won anything on PB's!!!

trevor_milne

Hello I am glad I am not alone as we purchased £1000 in 1995 it has grown to £4750 to date we wait until we have £2000 in winnings then buy £2000 blocock keep that block 6 months cash it in and buy another block and so on it has worked for us

doormanpgd

Yes Trevor, I agree with that, I do the same my self, but not every 6 months, perhaps every 2 years, because you lose one month in reinvestment time.

David

kah22

trevor_milne wrote:

Hello I am glad I am not alone as we purchased £1000 in 1995 it has grown to £4750 to date we wait until we have £2000 in winnings then buy £2000 blocock keep that block 6 months cash it in and buy another block and so on it has worked for us

Is there a logic behind this

Kevin

System

When I became 21, I invested in four £1 bonds. I am now almost 67 and in that time not one of those four bonds have brought me a penny. That bond with its value of £4 and its four numbers, now is brown with age. Dare I ask the question "what should I do with it?" frame it ?

penniesmakepounds_2

doormanpgd wrote:

I purchased £1000 of Premium Bonds in March 2000 for my son who was 6 years old then, his total winnings to date in £50 prizes is £450. Not to bad an investment. Oh, and by the way the £1000 I invested for him was as the result of a £50,000 win I had, so I guess Premium Bonds for me are a good investment.

D P

Just checked through the winning bonds, and found another 1 in the wrong winners envelope, so as corrected, he's won £450 in total.

Wow 50K!!! Did you have the max at the time??

I LOVE premium bonds!! I have won frequently on premium bonds since buying a 5k bond in March 2005 ( I have 8k now). I get giddy at the beginning of each month wondering if I am gonna win or not! 7 days to the next draw!

PixelFactor

sell it on ebay ?

doormanpgd

Had 20k at the time of the win in Dec'99

Gorgeous_George

As Martin has said, as an investment, premium bonds are poor, especially for non tax-payers and standard rate tax payers.

Those who think their investment has done well because they have won £50,000 or whatever should really be saying that their gamble has paid off. Just like lottery winners can boast that their investments in the Lotto has paid off.

In truth, the vast majority of the investors in premium bonds are losers. The very few that win are lucky gamblers.

And if one more person says you cannot lose your stake, I shall scream. Your stake is the interest that you could have had on your money and is not returned.

The reason recent PBs win more than older ones is because there are more recent ones in the draw. Thirty years ago, you couldn't hold £30,000 bonds. People die and their bonds are not entered after a maximum of 1 year. Some fools cash them in and buy them again, thereby losing another month's interest.

I wonder how many dead people hold bonds and the Government keeps the cash because the certificates have been thrown away or lost.



GG