In shock I just recieved £23,500.00 In Premuim Bonds

VT82

Glen_Clark wrote: »

The fact is, at the end of a year, £100 in premium bonds will pay an AVERAGE of £101.50.
Wheras £100 on the lottery will pay an AVERAGE of £50.
So to suggest the lottery is a better bet than premium bonds is a no-brainer.

Logic error.

Allow me to correct for you:

£100 in an ISA at 2.5%, followed by a £1 stake on the lottery, will return an AVERAGE of £102.00.

Your statement that the lottery is a better bet than Premium Bonds is a 'no-brainer' is correct, but only because you misunderstood the term 'no-brainer'.

HappyMJ

inshock1092 wrote: »

Thanks everyone this is really helpful!
I am going to use my own funds to give my parents a new bathroom and take my grandparents to see London eye.

I have been looking though the prizes for this year and to my shock it was only 1 £25.00 prize from January till now (April) so a fairly poor return. My isa is already filled . I am a student so have 10k tax free nearly.
Should I invest in new bonds as some of these are from 1986? Thanks.

As a non tax payer there are far better accounts to put your money in....such as 3% interest in a standard savings account. After tax it would be 2.4% but as you don't pay tax you would get 3% double the AVERAGE rate of premium bonds.

Premium Bonds are really only suitable for 40% tax payers who have maxed their ISA's and need or want a tax paid investment with a gambling element.

Glen_Clark

HappyMJ wrote: »

As a non tax payer there are far better accounts to put your money in....such as 3% interest in a standard savings account.

Where can you get a 'Standard Savings Account' paying 3%?

Glen_Clark

Jonbvn wrote: »

the chance of winning on the lottery is better than pb's.

No such a no brainer is it?;)

Yes it is!
The lottery pays out less than half what premium bonds do over a year!

HappyMJ

Glen_Clark wrote: »

Where can you get a 'Standard Savings Account' paying 3%?

Santander Current Account currently pays 3% on balances over £3,000 and up to £20,000. £2 monthly fee applies so use it as a current account and you get at least 1% cash back on almost any spend on the account which will easily cover the £2 monthly fee.

Nationwide Flexdirect pays 5% on balances up to £2,500 if you put £1,000 through the account each month. Easy to do just transfer it in and out again on the same day...or in multiple smaller transactions each week.

If you know any children then Halifax Childrens Regular Saver pays 6% on transfers in of £100 each month and leave it for 1 year. You can save on behalf of any child and you still keep the money and the interest. It does not have to actually be given to the child.

Glen_Clark

VT82 wrote: »

Logic error.

Allow me to correct for you:

£100 in an ISA at 2.5%, followed by a £1 stake on the lottery, will return an AVERAGE of £102.00.

Your statement that the lottery is a better bet than Premium Bonds is a 'no-brainer' is correct, but only because you misunderstood the term 'no-brainer'.

Better still you could put the £1 into a Premium bond giving an AVERAGE of £102.65! next year
The no-brainer is statements like the one I have quoted above.'the chance of winning on the lottery is better than pb's'

PS: It would be different if the other 50p went to worthy causes. But I gave up on that idea, and consequently stopped buying lottery tickets, when they paid £12.5 MILLION for Churchill's Letters :mad: Even if they were worth that amount, they should belong to the public anyway since he was employed by the public when he wrote them. In the commercial world we have to sign an affidavit stating that what we produce due to our employment belongs to our employers, not ourselves

HappyMJ

Glen_Clark wrote: »

Better still you could put the £1 into a Premium bond giving an AVERAGE of £102.65! next year
The no-brainer is statements like the one I have quoted above.'the chance of winning on the lottery is better than pb's'

The odds of winning £1,000,000 from £100 of premium bonds is about 400,000,000 to 1. There are currently £40 billion worth of premium bonds held and only 1 wins.

The odds of winning £1,000,000 from a £1 lottery ticket in a 6 from 49 lottery (the excess interest that you would have by investing the £100 in an ISA) is 13,983,816 to 1.

It's much easier to win a million on a £1 lottery ticket than from holding £100 of premium bonds. Although both are almost impossible.

waiax73

Congrats on the surprise. Consider a mortgage maybe? That's what I would do. Cheers

inshock1092

Sorry Guys for the delay In Responding I had loads of exams. I topped up to £24000 if I leave it locked in a saving accounts how long before it will reach £30k. I am not planning on buying a house just yet as my parents own 2 properties which they will pass on to me.

I did get a few personal message from investor from this site which I may look into. I am also going to donate some of the money to a dog home close by.

Thanks for your help so far guys !!!:beer:

notanewuser

inshock1092 wrote: »

Sorry Guys for the delay In Responding I had loads of exams. I topped up to £24000 if I leave it locked in a saving accounts how long before it will reach £30k. I am not planning on buying a house just yet as my parents own 2 properties which they will pass on to me.

I did get a few personal message from investor from this site which I may look into. I am also going to donate some of the money to a dog home close by.

Thanks for your help so far guys !!!:beer:

8-9 years at 3% APR. and the money won't be "worth" £30k then!