Premium Bonds Article Discussion Area

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  • Aegis
    Aegis Posts: 5,688 Forumite
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    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...
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • jamesd
    jamesd Posts: 26,103 Forumite
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    One reason that Premium Bonds are worth criticising is the low "interest" paid on them. That's entirely in the control of NS&I, just as it is in the control of banks that pay low interest rates.

    Martin is spot on with his criticism of them.
  • Aegis
    Aegis Posts: 5,688 Forumite
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    Very valid point. If they kept up with the decent ISA payments, the bonds would be a lot better. Hell, if they even managed to get up to the level of the half-assed savings accounts they'd be doing well. But 4% interest, even tax free, is something of a joke.
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • Lazy_Runner
    Lazy_Runner Posts: 335 Forumite
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    Martin is going to be on the Jeremy Vine show on Radio 2 tomorrow. He will be talking about Premium bonds and apparantly why he doesn't like them.
    If you are at a poker game and you cannot figure out who is the patsy then guess what...you're the patsy - Warren Buffet
  • Aegis
    Aegis Posts: 5,688 Forumite
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    What time's that going to be? Not a radio 2 man usually, but I may make an exception ;)
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • Lazy_Runner
    Lazy_Runner Posts: 335 Forumite
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    Not sure exactly. The show is on from noon till 2pm. As to when Martin is on, I couldn't say.
    If you are at a poker game and you cannot figure out who is the patsy then guess what...you're the patsy - Warren Buffet
  • Stavros_3
    Stavros_3 Posts: 1,288 Forumite
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    Me Too, what time is he on ??. I was going to buy £30k worth in January, am I better putting it with the rest of my capital (60k) in a high interest account
    Liquidity is when you look at your investment portfolio and **** your pants
  • M3_Sussex
    M3_Sussex Posts: 351 Forumite
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    The show starts at noon but I think Martin is on at 1pm after the news.
  • Stavros_3
    Stavros_3 Posts: 1,288 Forumite
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    Hey Martin, give us all a mention matey
    Liquidity is when you look at your investment portfolio and **** your pants
  • Aegis
    Aegis Posts: 5,688 Forumite
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    Oooh, use one of my lottery comparisons :D

    ok, I don't think they're actually good enough for that, but maybe if I keep refining them ;)
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
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