Premium Bond rate boosted from 1.15% to 1.4% – should you pile in?

qwert_yuiop

Rishtonite wrote: »

What's the average "interest" on Lotto tickets?
If I "invested" my £300 PB "interest" in Lotto tickets, how much am I likely to win?
My guess is not very much, so I'd rather opt for the PB winnings and use those winnings for something useful, than buying lottery tickets.

Very little - the lottery is the classic mug’s game. What’s the difference between a usual premium bond holding win rate and a high interest deposit account return? Looks like it’s about 1%, even allowing for a fairly good rate of luck. That is the money being used to gamble on the very low possibility of a big prize - that’s your effective lottery ticket squander.
I’m not saying a premium bond holder is doing the wrong thing - just pointing out what they’re doing. It’s sold as a sort of free gambling, which it’s not.

Rishtonite

Understood. What you are saying is that if, for example, I won £100 on premium bonds, but could have earned £150 in interest from a high interest account, then effectively I'm spending £50 "gambling" and not winning anything with that £50.

polymaff

qwert_yuiop wrote: »

Very little - the lottery is the classic mug’s game.

"A Lottery therefore is properly a Tax upon unfortunate self-conceited fools"

(Sir William Petty, 1662)

Oscargrouch

I have won more cash on the Postcode Lottery than National or Euromills. For a £10 DD per month, which supports proper British Charities; you can't go wrong. Especially if you re-invest your PB winnings....

forgotmyname

chamelion wrote: »

That's £115 less than you'd have made on a 3% account even after paying a higher rate tax.

So far all the 'success' stories I'm seeing in this thread indicate people are making less than if they had a few savings / checkings / regular savings accounts.

What if you already have all the 3% and 5% accounts and still have more to invest but risk free on the funds?

If you dont win then yes the value will be reduced due to inflation, but you get back what you paid in with a potential for better.
Its either that or a 0.02% account.

Does premium bonds make sense then?

FIL bought £1300 worth and won £75 in the first 12 months.

concorde1966

I invested £11500 that was eligible for Oct. 2017 draw. This is what I have won since;
Dec 17 - £25
Feb 18 - £25
March 18 - £25

I am quite pleased with the return and still have two months to go so will be interesting to see how much ive won in 12 months.

concorde1966

i bought £11,500 on Oct 2017 and have won 3x£25 in 10 months in Dec 17, Feb 18 and Mar 18