Premium Bonds Article Discussion Area

gunton10

baby_boomer wrote: »

I can understand why financial illiterates like Bob Geldof & Germaine Greer would advertise them.

So why is Alan Sugar recommending them when no businessman worth his salt would ever invest in such a dire product?

Or is it money for old rope for this ex-businessman?

alan sugar has loads of money whats £30,000 to him, its nothing so he might have it there if he has a chance of 1 million back. to him its like playing the lottery but with no loss.

WelshGandalf

gunton10 wrote: »

alan sugar has loads of money whats £30,000 to him, its nothing so he might have it there if he has a chance of 1 million back. to him its like playing the lottery but with no loss.

That's exactly how I look at it too - playing the lottery but with no loss. I have less than 10% of my total savings in premium bonds, and it's exciting to check online every month to see if I've won, even though I've won nothing yet :rolleyes:

I wish the article would make this clear - every time I read a blurb about PBs from Martin I feel like I'm being told I'm an idiot for having them :rolleyes:

Aegis

WelshGandalf wrote: »

That's exactly how I look at it too - playing the lottery but with no loss. I have less than 10% of my total savings in premium bonds, and it's exciting to check online every month to see if I've won, even though I've won nothing yet :rolleyes:

I wish the article would make this clear - every time I read a blurb about PBs from Martin I feel like I'm being told I'm an idiot for having them :rolleyes:

It's not "no loss" though, you are losing the interest you would otherwise have made on that money. At about 3.5% maximum at the moment, that's £840 per year for a basic rate taxpayer with the maximum holding effectively spent on entering this prize draw, which is more than most families probably spend on the Lottery in a year.

Midnight_Cowboy_2

Aegis wrote: »

It's not "no loss" though, you are losing the interest you would otherwise have made on that money. At about 3.5% maximum at the moment, that's £840 per year for a basic rate taxpayer with the maximum holding effectively spent on entering this prize draw, which is more than most families probably spend on the Lottery in a year.

Totally agree, there are times when a Premium Bonds investment looks quite reasonable compared to cash savings, and the odds comparable to National Lottery (see my past posts). Those times may return, but at present imho Premium Bonds dont offer either a good return relative to cash savings, nor good odds with the recent change in prize structure.

sillenek

When PBs were first issued in the 1950s as staff we were given one every week, they were then £1 in value, and I suppose I have about 20 in all. I have never ever won a thing on them and quite frankly the numbers range never appear in the winning lists. To me they are a unique piece of paper which someday may be worth something as an antique who knows. When we first had them there was great excitement that maybe we could win something. I think I will frame them as a memento of that period.
:beer:

finbar13_2

As a family of 5, 2 adults and 3 young children, we have a total of £65k invested in PBs this started 11yrs ago and has regularly been added to by lump sums, monthly direct debits and winnings reinvested to reach the current total.

We have regular wins especially 2 of us in particular. The largest amount won at one time was £500 and we remain happy with our investment even if it would do better invested else where. We dont rely on earning an income from our bonds and it provokes excitement each month with the prospect of a win however large or small.

We have noted however that the level of our winnings has declined over the past 12 months but hey ho lots of things have changed for almost everyone with the current climate so at least one element of optimism in our lives brightens our month and gives us a moment to dream of a life changing win and the many joyous exciting conversations it provokes of travelling, more quality family time and worry free living. Stay optimistic! Oh and if ERNIE is reading this one of the top 5 prizes would be nice in July!!

One other benefit is that they have made us save, withdrawel can't be made with a cashcard and the thought you might cash in next months £million winning bond is an incentive enough to leave well alone! We also feel quite confident that our money is in a safe place (fingers crossed) and if we havent had a big win by our retirement we can still do some nice things with what will be a nice little lump sum in 20yrs time. I only wish we could have added our youngest daughters child trust money to her current PBs instead of investing it in shares.

Dune2forthewin

I would invest the 30K over many different ways, not holding it in one instrument.

isofa

Dune2forthewin wrote: »

I would invest the 30K over many different ways, not holding it in one instrument.

Depends how much money you have in your portfolio, for some 30K is a drop in the ocean, for others it's a fortune, and for the latter PBs aren't a good idea. PBs aren't an investment instrument really, they are a calculated gamble where the capital is never at risk, only the potential interest gained from saving (not investing) elsewhere.

For me they've been a good punt for a bit of cash, it's money I'm not worried about, nor need to put elsewhere, I've won regularly, except over the past few months, many years I've outperformed what the money would have received on tax free top rates of interest. And there is the chance, albeit a slim one, of winning a few thousands to a million. Also there is the tax free status of the "wins" to consider for high-rate tax payers too.(And the safety of the capital being government backed, which seems to be more important nowdays to some.)

stphnstevey

I know you can use the online checker from NS&I to check this month and last 6 draws, but is there any way of checking further back?

Some other sites say they can check, but Iam loath to give out my number to any site other than NS&I

redrosey

I have had 6 PB for 35 years and have not won a penny!!
I would never invest a large amount of my savimgs in PB