Premium bonds - any point investing under £1000's

JohnSwift10

I've had one premium bond since the 1960's never won a single prize 

I was once in a lottery syndicate where when we had won £100 total in prizes we bought £100 of scratch cards.

There were 20 of us so 20 lines every week.

Out of that £100 of scratch cards we won a total of £10.00

We never won enough to buy another £100 of scratch cards in the time I remained in the syndicate. I left because I was made redundant, you had to work in the factory to be in the syndicate.

I have never bought a scratch card since. That was in 1990's

DiamondLil

boingy said:

Millyonare said:

PBs are a genius bit of marketing. By telling citizens they "win" cash, and not boring "interest", it puts a totally different perception on what is mostly a rubbish investment. The "win" transforms Premium Bonds from a rubbish savings account to an exciting gamble for the middle classes. Whoever dreamt up and signed off the "win" tagline in the 1950s was a genius.

He was called Ernie, and he was paid so badly that he had to do a milk round to make ends meet. 
(I should put that on Wikipedia...)

My Ernie, had him since 1956.

PixelPound

Albermarle said:

nic_c said:

subjecttocontract said:

But wouldn't a 6% fix mean not being able to access your money for a year or more ?
Premium Bonds can be cashed in at anytime.

A 6% fixed savings account pay out for me would be taxed so I'd end up with 3.6%

So you're on the higher band tax, used up all your PSA and looking for somewhere else. The exact person the article states should consider them, rather than everyone else who it doesn't make sense for. 

You are assuming that all human beings are entirely rational in their decisions. Clearly that is not the case and many people do lots of irrational/emotional things. Like have PB's because they like them/because their parents always had them/because they have a feeling that they are lucky and will win a big prize/ because they like the small thrill of waiting for the results each month etc. etc. 
The fact they pay a bit less interest is of little importance to many holders.

Was just replying because a poster had said as it works for them, saying it's better than the other options out there. 

Many people still have savings in poorly paying accounts, there is nothing to say you have to get the best thing going.

I'm not knocking anyone having them. In fact I am buying some for the first time, but under £100. Well aware I might not get anything, but that's not why I am getting them. 

Maybe some feel the need to defend their choice of having them.  

MX5huggy

JohnSwift10 said:

I've had one premium bond since the 1960's never won a single prize 

I was once in a lottery syndicate where when we had won £100 total in prizes we bought £100 of scratch cards.

There were 20 of us so 20 lines every week.

Out of that £100 of scratch cards we won a total of £10.00

We never won enough to buy another £100 of scratch cards in the time I remained in the syndicate. I left because I was made redundant, you had to work in the factory to be in the syndicate.

I have never bought a scratch card since. That was in 1990.

It wasn’t 1990, the National Lottery didn’t start till 1994 and scratch cards in 1995. 

PixelPound

MX5huggy said:

JohnSwift10 said:

I've had one premium bond since the 1960's never won a single prize 

I was once in a lottery syndicate where when we had won £100 total in prizes we bought £100 of scratch cards.

There were 20 of us so 20 lines every week.

Out of that £100 of scratch cards we won a total of £10.00

We never won enough to buy another £100 of scratch cards in the time I remained in the syndicate. I left because I was made redundant, you had to work in the factory to be in the syndicate.

I have never bought a scratch card since. That was in 1990.

It wasn’t 1990, the National Lottery didn’t start till 1994 and scratch cards in 1995. 

PB also started the £million prize in 1994.

JohnSwift10

It wasn’t 1990, the National Lottery didn’t start till 1994 and scratch cards in 1995. 

I'm getting old and forgetful. in 1990 we did the football pools, forgot about them, never won on them either.

Altior

For the OP's question, if you'd derive the same enjoyment out of premium bonds as a lottery ticket, it's an absolute no brainer, premium bonds 'win' every time. 

The volume is just perspective, there's no realistic prospect of a jackpot even at the max, just a theoretical one. However there aren't any other hail mary type gambles where you are assured of not losing the original stake.

It's also the only one I know of where the RTP is over 100%. 

Anything put in will of course erode over time, so in reality the stake loses purchasing power. But if that's your thing, then it has to be PBs over lottery style bets.  

badger09

DiamondLil said:

boingy said:

Millyonare said:

PBs are a genius bit of marketing. By telling citizens they "win" cash, and not boring "interest", it puts a totally different perception on what is mostly a rubbish investment. The "win" transforms Premium Bonds from a rubbish savings account to an exciting gamble for the middle classes. Whoever dreamt up and signed off the "win" tagline in the 1950s was a genius.

He was called Ernie, and he was paid so badly that he had to do a milk round to make ends meet. 
(I should put that on Wikipedia...)

My Ernie, had him since 1956.

He’s cute. And probably worth far more than my 18 x £1 PBS bought in 1956 & 1957. 

Still no win for me🥲

MikeJXE

My kids have had about £30 each in premium bonds since they were born

1969 and 1977

Not won a sausage 

jak22

If the odds are 1 in 20000 each month or 1 in 1667 a year then thats 1 in 56 for 30 - so there is a chance of a win sometime between 1969 and 2025