£1475 won on £50k Premium Bonds in one year - what interest rate does this represent?

alfiethecat

I'm not much good at maths and google doesn't seem to understand the question: could someone  please help me work out what interest rate £1475 won on £50k of Premium Bonds in one year represents? Thanks!

TheMilkmansDad

 I make it 2.95%

RosieRooBear

alfiethecat said:

I'm not much good at maths and google doesn't seem to understand the question: could someone  please help me work out what interest rate £1475 won on £50k of Premium Bonds in one year represents? Thanks!

If £50,000 held for a full year, £1475 = 2.95%

Ayr_Rage

2.95% , not great when you can still get 4.9% or thereabouts with an instant access account.

Misslayed

Could one of you clever types give me the formula to work mine out please?

Middle_of_the_Road

Ayr_Rage said:

2.95% , not great when you can still get 4.9% or thereabouts with an instant access account.

Although winnings will not be subject to tax, which could be useful for those who have already gone above their personal allowance.

eskbanker

Misslayed said:

Could one of you clever types give me the formula to work mine out please?

Winnings divided by holding multiplied by 100 gives the percentage return.

Ayr_Rage

Misslayed said:

Could one of you clever types give me the formula to work mine out please?

(Winnings x 100) divided by the total value of your bond holdings. 

Newbie_John

Or on £50k if you want to do "quick maths" multiplay your wins by 2.

£1475 (almost £1500) * 2 = £2950 (almost £3000) -> 2.95% (almost 3%)

The other way round if you aim at 5%:
5% -> £5000 / 2 = £2500 win

Swipe

Misslayed said:

Could one of you clever types give me the formula to work mine out please?

1,475÷50,000×100 = 2.95%

grumpy_codger

 It's worth adding that 2.95% is just an approximate estimation of the actual rate. Sort of a rate as it's probability in fact.

This can be, say, an underestimation if a big-value prise was won at the start of the year followed by smaller prizes.

And, generally, one year is a far too short period for making a reliable estimation.