£100,000 in Premium Bonds

Fella

Another forum did the sums once on PBs versus investing in the best savings account possible & spending all the interest on Lottery tickets. IIRC the lottery ticket method worked out as a substantially better chance of winning big.

Although both are horrible gambles really. If you want an element of risk withdraw the entire sum of interest on 100K savings & put it on zero on roulette. An approx. 3% chance of winning circa £100K perhaps. About a zillion times more than the chance of winning 100K on a PB.

PBs aren't awful but 100k in them would be a waste. Their main appeal is that people who struggle to save are more reluctant to cash in & spend PBs than they are to dip into easily-accessible savings. I've used PBs as a method to wean inveterate spenders onto saving in the past.

grizzly1911

Martin was on 5live yesterday. Pretty sure he put the chance of winning , £1m, from a single bond in the tens of billions to one (40bn???).

Isn't closer to 14m/1 for the existing max holding?

The 1.3% return is only an average. I wonder what the median return is.

Before the £1m payout used to get regular £25/50 wins sufficient to cover interest on a ~ £5K holding - gambling for free. Since the £1m payout next to nothing.

Opportunity cost of say £7/8k a year against a long term fund return on £100k.

Perhaps a £0.5m every other month and more smaller prizes might make it slightly more attractive.

As part of a very extensive pot i.e. they may be worth a punt .

MrRee_2

To Purch:-

EH?

I haven't boasted at all about anything ....... what is some peoples problem with another poster stating that they will be taking advantage of the Budget by increasing their Premium Bond holding to the Max.?

What's boasting about that?

The chancellor has selected £50k individual limit because there is a huge demand for it to happen ................. someone mentioning that is their intention on here isn't boasting (how can it be if plenty of others are about to do it as well?).

Nah ...... I am seeing the light now, it is utter jealousy ... my only fault is being too honest and suspecting that most others on a money forum are also building wealth.

But, no, it seems that some are here to accuse people who they see as successful as boasting ............. which is, obviously, quite pathetic.

MrRee_2

chucknorris wrote: »

EDIT: I've made two great investments in my life, and both were Labradors from a rescue centre, the cost was only £100, but priceless in value.

Now, THIS is what I can relate to!

Fantastic grounding words there, chucknorris, ....... it's the free things in life which have the most value!

purch

grizzly1911 wrote: »

Isn't closer to 14m/1 for the existing max holding?

I think you may be confuzzlating that with the odds of getting all six balls in the National Lottery, which are 1 in 13,983,816 :eek:

chucknorris

MrRee wrote: »

Now, THIS is what I can relate to!

Fantastic grounding words there, chucknorris, ....... it's the free things in life which have the most value!

He sometimes/often gets me over any inertia to do the things that I should be doing, right now Ozzie is eating (from) his kong on the lawn. But about 20 mins after finishing it I am taking him cycling off road on a nearby common where he can also have a swim. Later on this afternoon/early evening (just before dusk) I will be taking him to another common for a walk and run.

brewerdave

The chances of the £1m prize for a single bond is over 45billion to 1.
So the odds of a win with £30k are 1.5million to 1,the increase to £50k reduces that to an amazing ..wait for it 900,000 to 1 - in return for 1.3% net??

MrRee_2

900,000 to 1 for a single bond isn't bad - what is it for a single lottery ticket?

So, my wife and I between us have a 450,000 to 1 chance - better still.

Then, take into account that maybe only a few have the max in the first couple of draws - isn't that dropping the odds even further (or am I getting this bit wrong?)

You, of course, also get your stake back 100%!

grizzly1911

MrRee wrote: »

900,000 to 1 for a single bond isn't bad - what is it for a single lottery ticket?

So, my wife and I between us have a 450,000 to 1 chance - better still.

Then, take into account that maybe only a few have the max in the first couple of draws - isn't that dropping the odds even further (or am I getting this bit wrong?)

You, of course, also get your stake back 100%!

Think you need to reread brewerdave's post. 45bn/1 for a single bond reducing to 1.5m/1 for 30K and 0.9m/1 for £50k.

MrRee_2

Right ....... with it now.

But, if I am the only person who has 100,000 bonds - I stand a better chance of winning than anyone else ......... they are the odds I like in chasing that £1 million (of which there will now be two!).