Premium Bonds Article Discussion Area

eskbanker

Mark1010 said:

Bought NSI bonds in 1965. No wins and bonds remain nominal value.

Each Bond is valued @ £1.00 therefore if I had £1 in 1965 it would be valued at £16.00 today (2020) I would be better off just keeping that pound in my pocket.

NSI Bonds are not good financial instrument and should not be used as such.

I think this is a scam as, there is a very high chance you will never see a return and end up with less value than when you started. As proven with my experience.

Do not buy NSI bonds, stand more chance in winning a small amount on the lottery.

Oh dear, yet another one apparently unable to understand odds (or the meaning of the word 'scam')!

Out of curiosity, where do you believe you can put your money where it'll keep pace with long-term inflation without risking capital loss?

polymaff

Mark1010 said:

... if I had £1 in 1965 it would be valued at £16.00 today (2020) I would be better off just keeping that pound in my pocket.

Even assuming that the pocket remained unlaundered for all those years - the purchasing - as against antique - value today would be much less, not more, than the  £1. Try finding 20 litres of petrol for £1 in 2020.

Then there's the cost of redemption. ... 

Mark1010

polymaff said:

Mark1010 said:

... if I had £1 in 1965 it would be valued at £16.00 today (2020) I would be better off just keeping that pound in my pocket.

Even assuming that the pocket remained unlaundered for all those years - the purchasing - as against antique - value today would be much less, not more, than the  £1. Try finding 20 litres of petrol for £1 in 2020.

Then there's the cost of redemption. ... 

eskbanker said:

Mark1010 said:

Bought NSI bonds in 1965. No wins and bonds remain nominal value.

Each Bond is valued @ £1.00 therefore if I had £1 in 1965 it would be valued at £16.00 today (2020) I would be better off just keeping that pound in my pocket.

NSI Bonds are not good financial instrument and should not be used as such.

I think this is a scam as, there is a very high chance you will never see a return and end up with less value than when you started. As proven with my experience.

Do not buy NSI bonds, stand more chance in winning a small amount on the lottery.

Oh dear, yet another one apparently unable to understand odds (or the meaning of the word 'scam')!

Out of curiosity, where do you believe you can put your money where it'll keep pace with long-term inflation without risking capital loss?

eskbanker said:

Mark1010 said:

Bought NSI bonds in 1965. No wins and bonds remain nominal value.

Each Bond is valued @ £1.00 therefore if I had £1 in 1965 it would be valued at £16.00 today (2020) I would be better off just keeping that pound in my pocket.

NSI Bonds are not good financial instrument and should not be used as such.

I think this is a scam as, there is a very high chance you will never see a return and end up with less value than when you started. As proven with my experience.

Do not buy NSI bonds, stand more chance in winning a small amount on the lottery.

Oh dear, yet another one apparently unable to understand odds (or the meaning of the word 'scam')!

Out of curiosity, where do you believe you can put your money where it'll keep pace with long-term inflation without risking capital loss?

Hmm, another person apparently that does not know when they are being scammed... (a dishonest scheme; a fraud).

"Out of curiosity, where do you believe you can put your money where it'll keep pace with long-term inflation without risking capital loss?" Answer: Gold

The buying power of £1 in 1965 is not the same as today in 2020. There is a thing called inflation, look it up.

eskbanker

Mark1010 said:
Hmm, another person apparently that does not know when they are being scammed... (a dishonest scheme; a fraud).

Dishonest and fraudulent in what way exactly?  The published odds are clear - if you have a minuscule holding of premium bonds then the odds of any sort of return are also minuscule, although a tiny percentage of such holders will win proportionately massive prizes (even a minimum £25 prize from a £1 bond is a 2500% return), so the numbers game doesn't favour those not using them as a 'financial instrument' but just holding a token amount for sentimental reasons or in the very slim hope of a huge prize.  On the other hand, those with substantial holdings are highly likely to achieve a long-term return close to the median average of about 1.25% annual return, as you'll see from https://forums.moneysavingexpert.com/discussion/81778/premium-bond-winner#latest

Mark1010 said:
"Out of curiosity, where do you believe you can put your money where it'll keep pace with long-term inflation without risking capital loss?" Answer: Gold

Haha, good one!  There are never any drops in the gold price of course.... <facepalm>

Mark1010

polymaff said:

Mark1010 said:

... if I had £1 in 1965 it would be valued at £16.00 today (2020) I would be better off just keeping that pound in my pocket.

Even assuming that the pocket remained unlaundered for all those years - the purchasing - as against antique - value today would be much less, not more, than the  £1. Try finding 20 litres of petrol for £1 in 2020.

Then there's the cost of redemption. ... 

The office of Nations Statics says with the rate of inflation, the purchasing power of £1 in 1965 equals to the purchasing power of £19.49p in 2020.

"Try finding 20 litres of petrol for £1 in 2020" (I bet you could have bought 20 litres of petrol in 1965 for a £1

So why buy bonds knowing that 40 years down the line with inflation, you will get back less purchasing power with the capital invested than what you had before.

The only value in bonds is wishing that you win something, but its really hard to do that as the only ones that really have a chance are those that put in a very large capital. (Increasing their chances of winning)

Cant believe this has being going on so many years.

Even the banks adjusted for inflation when they were paying out PPI.

Bonds wants you to invest with them with no inflation adjustments, and advocates the more you buy, the more chance you have to win!... Sound scammy to me.

Gers

DFTT - that's my advice!

polymaff

Mark1010 said:

"Try finding 20 litres of petrol for £1 in 2020" (I bet you could have bought 20 litres of petrol in 1965 for a £1

Have you really not understood that that was the very point I was making?

bigadaj

Mark1010 said:

polymaff said:

Mark1010 said:

... if I had £1 in 1965 it would be valued at £16.00 today (2020) I would be better off just keeping that pound in my pocket.

Even assuming that the pocket remained unlaundered for all those years - the purchasing - as against antique - value today would be much less, not more, than the  £1. Try finding 20 litres of petrol for £1 in 2020.

Then there's the cost of redemption. ... 

The office of Nations Statics says with the rate of inflation, the purchasing power of £1 in 1965 equals to the purchasing power of £19.49p in 2020.

"Try finding 20 litres of petrol for £1 in 2020" (I bet you could have bought 20 litres of petrol in 1965 for a £1

So why buy bonds knowing that 40 years down the line with inflation, you will get back less purchasing power with the capital invested than what you had before.

The only value in bonds is wishing that you win something, but its really hard to do that as the only ones that really have a chance are those that put in a very large capital. (Increasing their chances of winning)

Cant believe this has being going on so many years.

Even the banks adjusted for inflation when they were paying out PPI.

Bonds wants you to invest with them with no inflation adjustments, and advocates the more you buy, the more chance you have to win!... Sound scammy to me.

Premium bonds may now be used by many as a proxy for bonds, or specifically gilts. Returns are typically better than gilts or similar with no risk of capital loss, to have a chance of matching or beating inflation then equities are still the only real game in town, as they hav been for decades.

Eco_Miser

Mark1010 said:

Bought NSI bonds in 1965. No wins and bonds remain nominal value.

Each Bond is valued @ £1.00 therefore if I had £1 in 1965 it would be valued at £16.00 today (2020) I would be better off just keeping that pound in my pocket.

NSI Bonds are not good financial instrument and should not be used as such.

I think this is a scam as, there is a very high chance you will never see a return and end up with less value than when you started. As proven with my experience.

Do not buy NSI bonds, stand more chance in winning a small amount on the lottery.

Any pound that you'd kept in your pocket since 1965 would buy exactly the same as a pound Premium Bond (after you'd got it converted from paper to metal).

The_Green_Hornet

Premium Bonds: End is nigh for prizes on the doormat

The days are numbered for the unexpected arrival of a Premium Bonds prize on the doormat, organisers have announced.

Some prize winners still receive paper warrants - like a cheque - in the post when their lucky numbers are drawn.

National Savings and Investments (NS&I), which runs the scheme, said these would be totally phased out by March.

Instead, prizes will be paid directly into bank accounts

https://www.bbc.co.uk/news/business-54189844