Premium Bonds Article Discussion Area

Jonbvn

Jonbvn wrote: »

Just read this editorial in the telegraph, which is calling MSE Martin a killjoy for being critical of PB's!

I think the Torygraph is completely wrong on this point. Martin specifically says that PB's are fine as a bit of fun, but are not a good method of saving/investment.

MSE Martin has now responded to this critics in the press here.

Salient quote:
Tell it you've the full £30,000 of bonds and it'll show that you have a 79.5 per cent chance of getting back less than inflation over a year

Aegis

I think Martin may wish to contact them about this typo though...

The 4 per cent interest rate leaves many thinking that's roughly what they'll get back. Yet it doesn't work that way. If I ran a £1 contest and 1m people entered with a £1,000,000 prize, I could say the average winnings were £1m even though 999,999 get nowt.

I think he meant to say that the average winnings were £1, not £1m

murphydavid

No everyone who wins wins £1m so the average winnings are £1m

Aegis

murphydavid wrote: »

No everyone who wins wins £1m so the average winnings are £1m

Hmm, that's not how I'd have read it personally! Oh well

Gorgeous_George

I listened to the (Jeremy Vine) show last week and was disappointed that Martin didn't hit the roof when the man from NS&I said you get your stake back with premium bonds! Martin didn't even correct him

The main reason that the odds are 1 in 18 billion for PBs compared with 1 in 14 million with the lotto is that you gamble just 0.5p per £1 bond (the interest on £1 at 6% per annum). A basic rate taxpayer would be gambling approximately 0.4p per bond and a higher rate tax payer just 0.3p for the same bond.

Of course, one could arge that as 23 million people own PBs and there are two £1million prizes each month, the chance of winning is one in 11.5million. Keep a single bond for a year and the odds are better than one in a million :rotfl:



GG

The other reason is that most prizes in lotto are just £10.

Jonbvn

Aegis wrote: »

Hmm, that's not how I'd have read it personally! Oh well

Of course! Such misleading statements tend to work in favour of the vendor. I'm sure we would be surprised at the number of lawyers et al. the relevant institutions engage, to ensure such statements are misleading, and can easily be misinterpreted in their favour, without them being sued.

MSE_Martin

It was a typo - its should've said the average winning was £1 not £1m (I use the same analogy in the site article). Don't know if it was my error or there to be honest; it was sent in a quick email

martin

notadamsmith_3

Love it, naked cash. BTW None of my friends have £30K in PBs so, though I'm getting a reasonable return, I can't make widespread comparisons.

notadamsmith_3

Nakedcash, you were pretty unlucky with your £30k in 6 months. In my experience you'll make up for it soonish. Let us know.

sandpiper

Hello

I have read with interest this thread, and agree that money can be invested to give a better return than Premium Bonds. My own experience is that I consolidated £20,000 in January of this year and asked for consecuitve numbers...since then I have had prizes totalling £900....the first draw was March. I am very pleased with my return. In case you do not believe me I list below the winnings. Hope to reproduces OK.

122ED27247 50 August
122ED28002 50 August

122ED28246 50 July

122ED26641 50 June

122ED27539 500 May

122ED27693 100 April
122ED27602 50 April

122ED27347 50 March