Premium Bonds Article Discussion Area

miaxmia

Aegis wrote: »

Purely out of interest, the odds of winning the top prize in a month of playing with premium bonds are about 1 in 865,000 with the maximum investment. Compare that with the odds of winning the top lottery prize in a month by betting an equivalent amount (i.e. £120 p/m), and you have 1 in 115,000. You're more likely to walk away with millions by investing your interest in the Lottery than in Premium Bonds, by the look of it. And the Lottery is just as sustainable if you have a savings account that pays interest monthly.

I guess this is why I'm not a fan of the Premium Bonds. I don't much fancy my chances with the Lottery, and it's longer odds on the Premium Bonds for the big win...

It's not all about winning the top prize!

nettibetti

Jonbvn wrote: »

Here you go.

http://www.nsandi.com/products/pb/haveYouWon.jsp

BTW, I want 10% of any winnings;)

thanks hunny!:T

LizB62

PBs are just down to luck: My brother has the maximum £30k holding and has won less in the last 2 years than my son, who has less than £5k worth of bonds.

One of my sisters, however, has better than average luck with her PBs: She has about £11k worth, £5k of which she won and reinvested about 7 years ago. She won another £1000 in this month's draw.:T

Our view is that while savings interest rates are low, we may as well gamble with the interest we're not getting on our PB money, and hope we're luckier than our brother

Pendle_Gazza

I think there's plenty of twaddle on here regarding Premium Bonds. Most people are not stupid and realise they are a gamble, and yes, for most people they are an unprofitable gamble.

I have built up to £12K over a year, and have only won two £50 prizes. But I'm not bothered. I have a chance every month, a small chance, and I'm happy with that.

Wouldn't it be boring if we all decided to stick our wads in the ICICI bank? And perhaps more stressful looking at some of the problems mentioned regarding that establishment on here!

It depends where your priorities are, and for me sticking a small percentage of your dosh in for a bit of hassle free fun every month is just that.

jamesd

Pendle_Gazza, how would you be feeling about it if 70% of your mothers savings were in Premium Bonds, decreasing in value every year because of inflation? They are safe over the short term but over the long term you lose a lot of money in them. Sadly this isn't uncommon.

There's no doubt at all that they can be reasonable enough in limited quantities for many people, but the interest rate being below inflation hurts a lot as well.

Paul_Herring

Most people are not stupid and realise they are a gamble

I beleive the premise behind most of the "anti-PB" comments is that most people are stupid and don't realise the nature of the gamble.

Wouldn't it be boring if we all decided to stick our wads in the ICICI bank?

What about stocks/shares? They're exciting at the moment

Aegis

Pendle_Gazza wrote: »

I think there's plenty of twaddle on here regarding Premium Bonds. Most people are not stupid and realise they are a gamble, and yes, for most people they are an unprofitable gamble.

I have built up to £12K over a year, and have only won two £50 prizes. But I'm not bothered. I have a chance every month, a small chance, and I'm happy with that.

Wouldn't it be boring if we all decided to stick our wads in the ICICI bank? And perhaps more stressful looking at some of the problems mentioned regarding that establishment on here!

It depends where your priorities are, and for me sticking a small percentage of your dosh in for a bit of hassle free fun every month is just that.

If you still wanted the fun of variable prize money, you'd have better odds saving your money in one of the high-interest accounts and putting the interest in to Lottery tickets. I think Martin mentioned that the Irish Lottery has the best returns overall, but even our own Lotto has twice the chance of winning you the jackpot than Premium Bonds do, and the top prizes there usually run into multi-millions rather than just the one.

As mentioned, if you like hassle-free gambling and are happy with using what is essentially a LOT of interest money for that purpose, then it's an ok return for you, but it's sold as an investment, and for that, Premium Bonds are an appallingly bad product!

Gers

I heard the broadcast yesterday too - very interesting! Today I came home to find THREE warrants totalling £200.00 won from my measly £1500.00 holding. :j:j All three came from the same batch of £150.00 worth bought in October last year. I started buying in September '05 I stopped buying in December '06 and toi nvest in regular saver accounts but am more than happy with my first time win.

:j:beer: Off to the bank to pay them in!

miaxmia

tightwadman wrote: »

Hey I didnt call you a "liar" but if the cap fits......

Now to some facts..

6.25% on the High Street - no problem - Northern Rock Silver Savings - and its linked to the base rate so unlike your winning AMOUNTS on the bonds, my interest has gone up twice already to this point and will go up again if interest rates are raised again. I have also seen a 6.5% bond if you are willing to leave your money in for a year. This is money guaranteed and I do believe there are more rates like this out there - oh yes it is 6.25% on whatever you put in and its not capped at some small amount like some accounts are. Yes that is before interest but what happens when you BANK the winnings out of your bonds - oh yes you pay interest dont you?

You and M3 Sussex ( HELLO by the way - I'm back!) appear to have been very lucky. Now lets see what happens to you both over the next twelve months as luck unlike interest is hit and miss and I really dont see lightning striking twice......

Bye Bye bonds...................

A good way of distorting the facts - why keep quoting gross rates on the High Street when comparing to net winnings on the premium bonds and, with reference to banking the winnings from premium bonds, you have a good point - in addition to my winnings I can invest the money and earn some interest too!!! - Laughing all the way to the bank;) :T

Pendle_Gazza

I wholeheartedly agree that as an investment, Premium Bonds are a very bad product for all but the lucky few. It just scares me reading how some people appear to have an obsession with percentages, probabilities and the like.

I do have a fair amount in a high interest account, but that's never going to make me rich. With bonds (or lottery) I have the teeniest chance of it happening, and I'm happy to foresake the £40 a month in interest chancing it.

The £40 does sound a hell of a lot, but I appease myself by deciding it's peanuts compared to what people pay out to smoke, for example .