Premium Bonds Article Discussion Area

bundoran

polymaff said:

sheilavw said:

me and my siblings each have a £2 premuim bond bought in 1964 by our late Grandparents. None of us have ever won.  I think thats its unlikely we will. £2 was a lot of money then

Worth about 10p today (from the government's RPI data.)

You've done it the wrong way round Poly!

£2 in 1964 was worth £40.84 in 2019 - the latest year for which the Bank of England Inflation Calculator has been updated.  🙂

polymaff

bundoran said:

polymaff said:

sheilavw said:

me and my siblings each have a £2 premuim bond bought in 1964 by our late Grandparents. None of us have ever won.  I think thats its unlikely we will. £2 was a lot of money then

Worth about 10p today (from the government's RPI data.)

You've done it the wrong way round Poly!

£2 in 1964 was worth £40.84 in 2019 - the latest year for which the Bank of England Inflation Calculator has been updated.  🙂

Tell you what. If those *bonds* - and that is the subject - really were "worth £40.84 in 2019", then offer sheilavw £40 for them - and make a profit on the deal.  She'll be delighted, too.  Win-win!

Those grandparents thought thay they were giving a tank of petrol, not a 2/- bus ticket!

Mark1010

Hmm... Seems like a lot of people have been conned back in the 1960s and 70s.

When people were buying bonds back then, Bonds were being sold as an investment vehicle.

They were being told that if you buy now and acculate savings for a better future. (I think a lot of people back then have been mis-sold these products)

I am sure if they knew they were entering a lottery, they would not have bothered.

eskbanker

Mark1010 said:

Hmm... Seems like a lot of people have been conned back in the 1960s and 70s.

When people were buying bonds back then, Bonds were being sold as an investment vehicle.

They were being told that if you buy now and acculate savings for a better future. (I think a lot of people back then have been mis-sold these products)

I am sure if they knew they were entering a lottery, they would not have bothered. 

They've never been an investment vehicle in the generally accepted sense and have always entailed capital protection (but not growth) while being in a random draw for prizes, although any prizes can obviously be re'invested'.

What sources do you cite for your assertions about what was allegedly promised?

polymaff

I don't remember a con. IIRC, they were promoted as a bit of a punt - quite racey for 1956.  Launched with a lot of razzamatazz. A major event when the first draw (in 1957) took place.

bundoran

polymaff said:

bundoran said:

polymaff said:

sheilavw said:

me and my siblings each have a £2 premuim bond bought in 1964 by our late Grandparents. None of us have ever won.  I think thats its unlikely we will. £2 was a lot of money then

Worth about 10p today (from the government's RPI data.)

You've done it the wrong way round Poly!

£2 in 1964 was worth £40.84 in 2019 - the latest year for which the Bank of England Inflation Calculator has been updated.  🙂

Tell you what. If those *bonds* - and that is the subject - really were "worth £40.84 in 2019", then offer sheilavw £40 for them - and make a profit on the deal.  She'll be delighted, too.  Win-win!

Those grandparents thought thay they were giving a tank of petrol, not a 2/- bus ticket!

No.

Sheila said that £2 was "a lot of money then". It would be £40.84 in 2019. The "subject" of her comment was £2 and its value in 1964 compared with now.

She wasn't saying that the bonds would be worth £40.84 now, and neither was I. That was very clear from her posting and from mine.

RG2015

For heaven’s sake! £2 is £2.

What it would buy now or would have bought then is clearly a different kettle of fish (cod vs caviar perhaps).

sheilavw

Thanks!!!! my Grandparents put us £100 each in the Halifax and a £2 premium bond each. As there's 5 of us it would have been quite a lot of money in them days. We know that they will never win!

polymaff

Thought that I'd try to put a handle on your grandparents' generosity.

In 1964, young couples looking for a new home could look at the average house for £3,360. At the time the average wage was £18 a year meaning that a house was only three-and-a-half times the annual wage of £960.

Classic Daily Mail.  Obsessed with house prices, innumerate and without sub-editors to trap the gaffes. ...

Mark1010

eskbanker said:

Mark1010 said:

Hmm... Seems like a lot of people have been conned back in the 1960s and 70s.

When people were buying bonds back then, Bonds were being sold as an investment vehicle.

They were being told that if you buy now and acculate savings for a better future. (I think a lot of people back then have been mis-sold these products)

I am sure if they knew they were entering a lottery, they would not have bothered. 

They've never been an investment vehicle in the generally accepted sense and have always entailed capital protection (but not growth) while being in a random draw for prizes, although any prizes can obviously be re'invested'.

What sources do you cite for your assertions about what was allegedly promised?

No sources, this is what my family and others were told back in 1960's and they have always beleieved that it was an investment vehicle and not a lottery.

This sheme is actually worst than PPI.

But atleast today everyone know that's its a lottery where only the wealthy stands a chance in winning.

Sad... all thoses people sold lottery tickeks (bonds) which they thought were investmenting and now too old to really challenge it.