Premium Bonds

EachPenny

worldtraveller wrote: »

I've had a £1 bond since 1957 and I've never won anything!

Well if you don't win anything for the next 1939 years I think you should write in and complain that your Bond is faulty.

stevedb11

I have had £1000 in bonds for 3 years and have just recieved my first prize: £25, it was a nice suprise.:)

AndyT678

stevedb11 wrote: »

I have had £1000 in bonds for 3 years and have just recieved my first prize: £25, it was a nice suprise.:)

That's nice for you. I've had £1,000 in bank accounts for the last 3 years that's earned £150 in interest. I wasn't at all surprised though.

Reaper

nigecooper wrote: »

Martin keeps saying that your chance of winning a prize with Premium Bonds in a year is zero if you only have £1000.

Actually what Martin says on his premium bond calculator page is:

With £1,000 in Premium Bonds, if you have average luck you would expect to win roughly NOTHING over 1 year

Which is entirely accurate.

Katiehound

Personally, however low the interest rate I'd rather be putting my money in current accounts that are guaranteed to give me something back, not wait hopefully for a brown envelope to arrive.

I don't do the National Lottery either! However I appreciate that with premium bonds you do get your 'investment' back - it's not a completely lost cause.

stevedb11

AndyT678 wrote: »

That's nice for you. I've had £1,000 in bank accounts for the last 3 years that's earned £150 in interest. I wasn't at all surprised though.

Yes Andy,I was suprised as I never expected anything!!, I know its not the same as regular interest, but its just a tiny part of my overall savings,and I only keep it in there as I have a outside chance of winning a big prize, a bit of fun really.

By the way, I assume the same as me you have a regular savings account to get 5% on your £1000.:)

dont_use_vistaprint

I disagree with Martin's thoughts on this. I like them as part of a balanced portfolio because the worst that can happen is you make no gains, unlike stocks, the best that can happen is you get lucky and make killing, like the lottery or gambling, but for slightly smarter people, and unlike bonds and savings which give no opportunity for decent gains. I hold 10K and Im hoping for a bit of luck! If it was less I probably wouldn't bother and if I don't get a few £25's Ill shift them to real bonds.

eskbanker

dont_use_vistaprint wrote: »

I disagree with Martin's thoughts on this. I like them as part of a balanced portfolio....

What makes you think your view is different from Martin's? The MSE piece goes to great lengths to explain the facts and compares PBs to various other options but doesn't conclude that they're a bad idea in all circumstances, just that there are usually ways of achieving a better return for most people.

dont_use_vistaprint

stevedb11 wrote: »

By the way, I assume the same as me you have a regular savings account to get 5% on your £1000.:)

What account gives 5% on £1000 for more than 24 months, without having to change your current account or mortgage.

£100 is no way near enough incentive to have to switch an account and all the hassle that incurs on debits and credits , I would want a minimum of 5 x that over the duration of the saving accounts fixed period . The marketing people coming up with these offers must think we have nothing better to do than continually switch account :-)

dont_use_vistaprint

eskbanker wrote: »

What makes you think your view is different from Martin's? The MSE piece goes to great lengths to explain the facts and compares PBs to various other options but doesn't conclude that they're a bad idea in all circumstances, just that there are usually ways of achieving a better return for most people.

My understanding from the article (and it was a little while ago I read it) was that:

> The conclusion was they are really not a good choice
> No discussion of luck, which is important in many investments, he focussed on just the statistical / probability analysis
> Mostly just compared them to savings , which they are clearly not. If you want a steady fixed return they are not fo you


That's mostly why I think my view is different to his.