Premium Bonds Article Discussion Area

Aegis

Hen_Step wrote: »

Had £4,000 since April 2009 and invested a further £3,000 April 2010.

Just won 2 x £25 from 2009 bonds.

If that's all you won over the last year, that's a return of just 1.25%...

Bobbyw_2

I have held Premium Bonds for a number of years now and my returns have been (all winnings taken as new bonds): -

Holding on 1st Jan each year % return over the year

2000 - £10,000.00 .............................7.00
2001 - £10,700.00 .............................5.61
2002 - $11,300.00 .............................2.21
2003 - £11,550.00 .............................1.73
2004 - £11,750.00............................. 2.55
2005 - £12,050.00 .............................4.98
2006 - £12,650.00............................. 1.98
2007 - £12,900.00............................. 3.88
2008 - £13,400.00 .............................3.36
2009 - £13,850.00 .............................1.44
2010 - £14,050.00 .............................1.42 (to date)

Bearing in mind there is always the possibility of winning larger amounts (maybe £1M J), I am quite happy to maintain my stake. This is the only form of gambling I know where you can get your stake money back at any time.

Stavros_3

This is what MSE said on their P.B calculator article
"Over 22 million people have £40bn in Premium Bonds"

Is this correct, 22m people seems a lot to me

jkc_2

just typed in my dads holder number, and he hasnt won any thing, i would like to know how so many are getting so many returns and hes not seen any. four hundred pounds was a lot of money at the time, its depreciated far more than any return and its not worth cashing the bonds in.

Aegis

Bobbyw wrote: »

I have held Premium Bonds for a number of years now and my returns have been (all winnings taken as new bonds): -

Holding on 1st Jan each year % return over the year

2000 - £10,000.00 .............................7.00
2001 - £10,700.00 .............................5.61
2002 - $11,300.00 .............................2.21
2003 - £11,550.00 .............................1.73
2004 - £11,750.00............................. 2.55
2005 - £12,050.00 .............................4.98
2006 - £12,650.00............................. 1.98
2007 - £12,900.00............................. 3.88
2008 - £13,400.00 .............................3.36
2009 - £13,850.00 .............................1.44
2010 - £14,050.00 .............................1.42 (to date)

Bearing in mind there is always the possibility of winning larger amounts (maybe £1M J), I am quite happy to maintain my stake. This is the only form of gambling I know where you can get your stake money back at any time.

You can't get back your stake. The money you gamble is your interest, and that's lost unless you win something.

DavidP24

What is interesting is comparing the return of £30k over different periods.

Assuming you are happy with the low return it seems that a one year holding is the best you are likely to get, after that it gets worse each year except for 4 years, but other investments allow you to consolidate.

30k over 1 years gets you £400 (£400 per annum)
30k over 1.5 years gets you £500 (£333 per annum)
30k over 2 years gets you £750 (£375 per annum)
30k over 3 years gets you £1000 (£333 per annum)
30k over 4 years gets you £1500 (£375 per annum)
30k over 5 years gets you £1500 (£300 per annum)
30k over 10 years gets you £2500 (£250 per annum)

This is not a lottery, it is a way for the Government to borrow your money and the "winnings" are crap, if you have a gambling habit I guess they offer a means to let you get some buzz, but these returns hardly even cover your inflation losses. 60k, man are you nuts? At Zopa.com you can set your own rates and get an average of 8%. I have about 60k of debt, hell I would gladly split the difference between what I am paying my creditors and what you are getting for your premium bonds. Hell, if you want I will even chuck in a lottery each month!!

DavidP24

jkc wrote: »

just typed in my dads holder number, and he hasnt won any thing, i would like to know how so many are getting so many returns and hes not seen any. four hundred pounds was a lot of money at the time, its depreciated far more than any return and its not worth cashing the bonds in.

I have £10 of bonds bought in 1982, never won a cent in 28 years!

DavidP24

Hen_Step wrote: »

Had £4,000 since April 2009 and invested a further £3,000 April 2010.

Just won 2 x £25 from 2009 bonds.

Time to get out, have you actually calculated your winnings as interest and compared it to other investments?

DavidP24

quidsin? wrote: »

£8000 lump sum invested 5 years ago because a student worked their way through uni and woud not take maintainence money due to them.
Income to date £1225 tax free and we still have the capital. We are proud parents of a daughter who knows how to manage money. PBs are not such a bad gamble if the ISA is full and the cash may well have ended up going over the counter in the local bars.

You do not still have your capital, you have the same amount less 5 years of inflation. If you had stuck that same money in another product and consolidated your earnings you would now be enjoying a lot more. Even allowing for charges and tax you would be better off elsewhere.

The_Pict

Well folks, my grandfather bought me a £1.00 - yes one pound - premium bond when I was born in 1961 and I have never won anything. My son was given £100 worth of premium bonds when he was born in 1993 and he hasn't wn anything either . . . . so . . . looks like MSE's calculator's quite right!:)