Premium Bond Winner ?

Jonbvn

Interestingly I think NS&I are mostly to blame for the lack of distinction between gambling & saving wrt PB's.

Firstly they call the things BONDS, which conjures up an image of a solid financial product, which they obviously are not.

When you want to buy them online, you have to INVEST now, again like buying S&S.

You don't actually lose your stake.

Finally, when they pay-out you get winnings just like a lottery.

Very shrewd IMHO.

Gorgeous_George

Tye_Twad wrote: »

Because they are "winnings" you fool........you obviously dont understand how p.bonds work so i suggest you read up on the terminology before making your snide comments :lipsrseal

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

If I stake £500 and get a return of £450, I call that losing £50.

If you seriously think of it as winning £450 then the cause is lost and it is little wonder that the country is in such a mess.

GG

Jonbvn

Gorgeous_George wrote: »

If I stake £500 and get a return of £450, I call that losing £50.

GG

GG,

When you buy PB's you do not lose your original stake (except vs. inflation over time).

Gorgeous_George

Jonbvn wrote: »

GG,

When you buy PB's you do not lose your original stake (except vs. inflation over time).

That's where we disagree.

From Wikipedia

a stake is the quantity of money or other goods that is risked on the outcome of some specific event

Therefore, with Premium Bonds, the stake is the interest that your money would earn if invested elsewhere. That is what is wagered.

So, with the maximum £30,000 holding, you stake £30,000 x 4% (modest post tax interest) or £100 per month. You could invest the money and gamble the £100 interest each month on horses. It would be exactly the same as gambling on the Government's raffle.

But please, keep the PBs folks. This voluntary tax would need to be raised elsewhere if it was not for PB 'investors'.

GG

6022tivo

I hear that the max limit may be increased to 50k (pub talk)..

Any ideas, I would assume it would be a good idea from the govenment, and if so, would the 30k holders find another 20k to top up.. I would.

[Deleted User]

6022tivo wrote: »

I hear that the max limit may be increased to 50k (pub talk)

It would be good, but I don't believe it.

mayb_2

if we were drinking £100 per month rather than gambling it in PB's as you view it - or really losing it on the horses for instance I could see how this would be a waste of money GG, but only the purists see it the way you do. It is as much a state of mind as anything else we are purchasing with our bonds so why spoil the fun. (with the state of the banking industry at the moment our money may well prove to be in the best place after all).

dkmax_2

Gorgeous_George wrote: »

That's where we disagree.
From Wikipedia

A reliable source!:rotfl:

Therefore, with Premium Bonds, the stake is the interest that your money would earn if invested elsewhere. That is what is wagered.

Wrong. Read you own quote. The stake is what is risked in the venture - it is most definitely not the opportunity cost. There is no risk of loss in nominal terms with PBs and hence no traditional stake. The word stake is inappropriate in this context.

robstok2000

I have held the maximun amount of bonds for 3 years now.Since last November I have only won £50 that was last month.I dont consider that to be a good return on £30000 in six months considering that the statistics show that normally one should win approximately 12-14 times per year or 98% of the time.Perhaps it is time for me to cash in.

***xyz***

Has anyone had their cheques delivered yet? Mine normally come on the 16th of the month, but nothing so far......

Yes I know, I am impatient!