Premium Bonds Article Discussion Area

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.

IanManc

Mark1010 said:

The office of Nations Statics .....

🤣 🤣 🤣 🤣 🤣

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

roncos

Nice article. However in my particular case I think premium bonds are a good option v savings products. I have deposited the maximum 50k£ in savings bonds, I need easy access, its short term.

The income from prizes is very consistent, very low variability. Averaged over any period longer than about 4 months the return is exactly the return predicted by moneysavingexpert. The effective interest is just over 1%. Compare this to savings accounts, the best savings accounts are about the same interest and the ones that are easy access and allow a large initial deposit are few and far between. Buying bonds has no KYC or other hoops that opening a savings account in some obscure BS would have, zero chance of being rejected (Liver in uk for only a few years so it is a consideration). Overall premium bonds have been a good option.

However, the interest is not compounding as I am already at the maximum bond holding, so not a good long term option.

Also, just discovered they are reducing the interest rate so might cash out now.

roncos

roncos said:

(Liver in uk for only a few years so it is a consideration)

Apologies for typo. Liver, and the rest of me, has been living in the uk for only a few years.

eskbanker

roncos said:

roncos said:

(Liver in uk for only a few years so it is a consideration)

Apologies for typo. Liver, and the rest of me, has been living in the uk for only a few years.

The savings interest rate landscape is pretty offal....

roncos said:

However, the interest is not compounding as I am already at the maximum bond holding, so not a good long term option.

Cash deposit-based products never are a good long term option because of inflation, but the compounding effect is negligible in the current ultra-low interest environment anyway.

PeterOzanne

Hi Martin or anyone! My question is about inheriting the money from PB's. In the article is says the will executor has to cash them, but what if I didn't write a will naming an executor? Would my son be entitled to cash them, just as he would automatically inherit my money and possessions?