Putting some money away as emergency fund

strawb_shortcake

Apodemus wrote: »

If you have had £300 in Premium Bonds for 10 years, an average return of 1.5% per annum would suggest that you should expect to have had about two £25 prizes. If you have had £75, then you are exceeding your “average luck” expectation and exceeding what the same £300 would have returned if it was sitting on deposit at the 1.5% suggested above.

My maths is quite appalling so I'd never considered the return on the 300. My Mum has around 20000 and won every month this year, so maybe some of her luck will rub off on us. I imagine any money we do get will go into our savings account or holiday pot if I'm lucky.

Apodemus

annabanana82 wrote: »

My maths is quite appalling so I'd never considered the return on the 300. My Mum has around 20000 and won every month this year, so maybe some of her luck will rub off on us. I imagine any money we do get will go into our savings account or holiday pot if I'm lucky.

At £20,000 she might reasonably expect the equivalent of a £25 win 10 months out of every 12, but it would be surprising if these were so evenly distributed. But your £75 in ten years on £300 still exceeds her luck!

strawb_shortcake

Apodemus wrote: »

At £20,000 she might reasonably expect the equivalent of a £25 win 10 months out of every 12, but it would be surprising if these were so evenly distributed. But your £75 in ten years on £300 still exceeds her luck!

We'll have the maximum amount so time will tell, I may have to resit my maths GCSE...