Premium bonds and negative interest rates

MrMoore

sevenhills said:

moneysavinghero said:

Then you would just withdraw your money and put it elsewhere. Not that it is going to happen anyway

But interest rates are already very low, so we are talking about rates moving 0.5-1%

What if everywhere elase was at a negative rate? You could put it into fine wine and at least drink it if the price went negative

MrMoore

annabanana82 said:

MrMoore said:

Hope you don't miss the notification of the changes of Premium Bonds if it happens

 

Given the publicity that was given with a drop from 1.4 to 1% I'd imagine you'd have to be dead or in a coma to miss the news that two (un)lucky Premium bond holders would have to find £1m if their numbers came up

annabanana82 said:

MrMoore said:

Hope you don't miss the notification of the changes of Premium Bonds if it happens

 

Given the publicity that was given with a drop from 1.4 to 1% I'd imagine you'd have to be dead or in a coma to miss the news that two (un)lucky Premium bond holders would have to find £1m if their numbers came up

Coma is one possibility or on a caravan hoiliday in Cornwall another and many more apart form dead as that would only affect other benerficieries.

MrMoore

eskbanker said:

MrMoore said:

Hope you don't miss the notification of the changes of Premium Bonds if it happens

My point was that a relatively minor change in prize rates was heavily publicised well in advance.  'Going negative' would actually be a complete change to the entire basis of the product, which is oriented around payment of prizes and has no Ts & Cs allowing capital deductions, so (at the risk of dignifying this notion) if there ever was any move in that direction, they'd be obliged to go through a much more formal process than publishing new rates.

MrMoore said:

You could always gamble your negative interest or prize of negative £1M on the lottery as they are not based on interest rates for the prize fund.

I don't know what you mean but hope it made sense to you.  Are you perhaps under the impression that PB prize rates are correlated with bank base rates (or indeed any other rates)?

MrMoore said:

The other thing is that property prices will go through the roof in my opinion as a reult of negative interest rates rather than fall due to jobless as predicated previously for the 4th quaster of this year. Very fanciiful I agree if that is the right word for a disaster!

You do know what 'fanciful' means, right?

MrMoore said:

So you think Premuim Bonds are a safe haven then, well lets hope so as there is nowhere else to put your savings apart from property my learned friend.

I don't know what the future holds for PBs, but if things ever got to the stage where it was felt inappropriate to continue to pay prizes, the scheme would effectively need to be unwound and replaced with something else, under new terms.  As above, in the extremely unlikely case that this happened, bondholders would have ample time to take action, but there's no particular reason to believe that property would be an obvious alternative, never mind the only one....

eskbanker said:

MrMoore said:

Hope you don't miss the notification of the changes of Premium Bonds if it happens

My point was that a relatively minor change in prize rates was heavily publicised well in advance.  'Going negative' would actually be a complete change to the entire basis of the product, which is oriented around payment of prizes and has no Ts & Cs allowing capital deductions, so (at the risk of dignifying this notion) if there ever was any move in that direction, they'd be obliged to go through a much more formal process than publishing new rates.

MrMoore said:

You could always gamble your negative interest or prize of negative £1M on the lottery as they are not based on interest rates for the prize fund.

I don't know what you mean but hope it made sense to you.  Are you perhaps under the impression that PB prize rates are correlated with bank base rates (or indeed any other rates)?

MrMoore said:

The other thing is that property prices will go through the roof in my opinion as a reult of negative interest rates rather than fall due to jobless as predicated previously for the 4th quaster of this year. Very fanciiful I agree if that is the right word for a disaster!

You do know what 'fanciful' means, right?

MrMoore said:

So you think Premuim Bonds are a safe haven then, well lets hope so as there is nowhere else to put your savings apart from property my learned friend.

I don't know what the future holds for PBs, but if things ever got to the stage where it was felt inappropriate to continue to pay prizes, the scheme would effectively need to be unwound and replaced with something else, under new terms.  As above, in the extremely unlikely case that this happened, bondholders would have ample time to take action, but there's no particular reason to believe that property would be an obvious alternative, never mind the only one....

eskbanker said:

MrMoore said:

Hope you don't miss the notification of the changes of Premium Bonds if it happens

My point was that a relatively minor change in prize rates was heavily publicised well in advance.  'Going negative' would actually be a complete change to the entire basis of the product, which is oriented around payment of prizes and has no Ts & Cs allowing capital deductions, so (at the risk of dignifying this notion) if there ever was any move in that direction, they'd be obliged to go through a much more formal process than publishing new rates.

MrMoore said:

You could always gamble your negative interest or prize of negative £1M on the lottery as they are not based on interest rates for the prize fund.

I don't know what you mean but hope it made sense to you.  Are you perhaps under the impression that PB prize rates are correlated with bank base rates (or indeed any other rates)?

MrMoore said:

The other thing is that property prices will go through the roof in my opinion as a reult of negative interest rates rather than fall due to jobless as predicated previously for the 4th quaster of this year. Very fanciiful I agree if that is the right word for a disaster!

You do know what 'fanciful' means, right?

MrMoore said:

So you think Premuim Bonds are a safe haven then, well lets hope so as there is nowhere else to put your savings apart from property my learned friend.

I don't know what the future holds for PBs, but if things ever got to the stage where it was felt inappropriate to continue to pay prizes, the scheme would effectively need to be unwound and replaced with something else, under new terms.  As above, in the extremely unlikely case that this happened, bondholders would have ample time to take action, but there's no particular reason to believe that property would be an obvious alternative, never mind the only one....

It has alread happened with house prices in Europe so never just rule things out....you may come to eat your words.

Replaced if you have time to notice it as I said. Do you not remember? Never say impossible! I don't bother much with fancy words, just keep it plain.

Deleted_User said:

Negative interest rates probably wouldn't apply to me, because I have a bottle of tequila in the drinks cupboard.

I agree with that and one of the best replies that I have had. A big thank you from me if you are serious.

eskbanker said:

MrMoore said:

Hope you don't miss the notification of the changes of Premium Bonds if it happens

My point was that a relatively minor change in prize rates was heavily publicised well in advance.  'Going negative' would actually be a complete change to the entire basis of the product, which is oriented around payment of prizes and has no Ts & Cs allowing capital deductions, so (at the risk of dignifying this notion) if there ever was any move in that direction, they'd be obliged to go through a much more formal process than publishing new rates.

MrMoore said:

You could always gamble your negative interest or prize of negative £1M on the lottery as they are not based on interest rates for the prize fund.

I don't know what you mean but hope it made sense to you.  Are you perhaps under the impression that PB prize rates are correlated with bank base rates (or indeed any other rates)?

MrMoore said:

The other thing is that property prices will go through the roof in my opinion as a reult of negative interest rates rather than fall due to jobless as predicated previously for the 4th quaster of this year. Very fanciiful I agree if that is the right word for a disaster!

You do know what 'fanciful' means, right?

MrMoore said:

So you think Premuim Bonds are a safe haven then, well lets hope so as there is nowhere else to put your savings apart from property my learned friend.

I don't know what the future holds for PBs, but if things ever got to the stage where it was felt inappropriate to continue to pay prizes, the scheme would effectively need to be unwound and replaced with something else, under new terms.  As above, in the extremely unlikely case that this happened, bondholders would have ample time to take action, but there's no particular reason to believe that property would be an obvious alternative, never mind the only one....

Well lets hope you are correct. BTW check out houses prices where interest rates have gone negative, it could be that you are wrong about things. No person and nothing invented can be perfect.