Premium bonds

54macmillan43

Please can anyone tell me statistically, if I was to invest the maximum £30,000 in premium bonds, is it best to buy 3 x blocks of £10,000 or one block of £30,000?

Aegis

54macmillan43 wrote: »

Please can anyone tell me statistically, if I was to invest the maximum £30,000 in premium bonds, is it best to buy 3 x blocks of £10,000 or one block of £30,000?

No difference at all, it's a random number game.

opinions4u

10 lots of £3k. 3,000 lots of £100.

The result is the same.

The chance of winning or otherwise is the same.

Sceptic001

If I were to put £30k into an instant access account paying 3% gross, this would generate approx. £60 per month for a basic rate taxpayer. Can anyone tell me if statistically I would be better off buying £60 of lottery tickets per month or putting my £30k into premium bonds?

talexuser

The lottery chances are 1 in ~14million for every pound, with nothing back. Premium bonds are much better odds of something like 1 in ~36000 for any prize, but the million pound prize is much worse at something like 40 billion to 1... but with stake money back.

With 30000 in Premium bonds I guess you're getting near 98-99% probability of winning a prize every year (but which prize is the guess). The calculator here reckons an average return of 400 pounds in prizes per year.

Suarez

http://www.moneysavingexpert.com/savings/premium-bonds-calculator/

Ark_Welder

talexuser wrote: »

The lottery chances are 1 in ~14million for every pound

That's the odds of winning the top prize, i.e. six numbers. Odds of winning a Tenner are 1:57. Minimum odds on Thunderball is 1:29, EuroMillions is 1:23


http://www.national-lottery.co.uk/player/p/help/playinginstore/lotto.ftl

http://www.national-lottery.co.uk/player/p/help/playinginstore/thunderball.ftl

http://www.national-lottery.co.uk/player/p/help/playinginstore/euromillions.ftl

Sceptic001

OK, so the options seem to be:

• £30k premium bonds yield £400 with average luck (mse calculator)
  
• £30k in 3% instant access account yields £720 (no luck required)
  
• £720 spent on lotto tickets yields approx £151 with average luck
  (12x£10 3-number prizes and a fifty/fifty chance of winning one £62 4-number prize). http://www.national-lottery.co.uk/player/p/help/playinginstore/lotto.ftl

I guess I'll stick with my instant access account and the odd flutter on the football with Betfair...

VT82

Sceptic001 wrote: »

OK, so the options seem to be:

• £30k premium bonds yield £400 with average luck (mse calculator)
  
• £30k in 3% instant access account yields £720 (no luck required)
  
• £720 spent on lotto tickets yields approx £151 with average luck
  (12x£10 3-number prizes and a fifty/fifty chance of winning one £62 4-number prize). http://www.national-lottery.co.uk/player/p/help/playinginstore/lotto.ftl

I guess I'll stick with my instant access account and the odd flutter on the football with Betfair...

Average luck is meaningless when discussing Premium Bonds and lottery. People invest in/play these for the chance of winning the big prize. The lottery pays out just over half the receipts as prizes, so saying you would win on average £151 with £720 of lottery tickets misses the point of why you would play the lottery over holding PB's.

Ark_Welder

• £720 spent on lotto tickets yields approx £151 with average luck

Perhaps more accurate to say: £720 spent on lotto tickets loses approx £569 with average luck