ITV Martin Lewis - Premium Bonds

aaronfunk4000

I recently bought £100 worth of bonds. I don't think I will buy any more. I will look to either put more money into an investment fund or savings then look at using some of the interest to get some more bonds.

That said when I was growing up I had some in my name and won a good amount of money. Also if you win you can withdraw that or choose to re invest and buy more bonds.

The calculation on the probability of a new win with a larger amounts of bonds (better probability) Vs that of general interest is an interesting one.

JohnRo

I used to have 20K in premium bonds (when that was the maximum allowed) for about 2 years.

Never won anything more than the (then) £50 minimum prize, some months had two prize cheques, some had none.

Moved the lot out to a high interest savings account (kaupthing edge 7.2%) and have never looked back since.

Premium bonds are a complete waste of time and money in my experience.

latecomer

OH had £30,000 in premium bonds and over the term had equivalent of 6% interest. Had a couple of £500/1000 prizes and plenty of small ones but that was 5-6 years ago back when the prize fund was larger (and we had spare cash )

N1AK

latecomer wrote: »

OH had £30,000 in premium bonds and over the term had equivalent of 6% interest. Had a couple of £500/1000 prizes and plenty of small ones but that was 5-6 years ago back when the prize fund was larger (and we had spare cash )

Some people play the lottery and become millionaires; that doesn't make it a sound argument for an investment strategy.

latecomer

Very true - it was a temporary home for the cash and as a higher rate tax payer it was quite attractive at that point in time, provided it consistently provided winnings which it did.

They were cashed in some time ago when we bought our house and we currently dont hold any.

Wywth

Anyone that missed Martin yesterday can catch up with him here for the next week

http://www.itv.com/itvplayer/video/?Filter=328263