Premium Bond Winner ?

pbcpdeveloper

InA said:

pbcpdeveloper said:

redpete said:

underwhelmed_saver said:

interestingly the 2x £1m winners both increased their holdings in February this year, that must feel like the best investment decision ever!

Only if the winning bond was one of the ones they bought in Feb.

Both £1 mill winning bonds were bought in February. One was part of a purchase of £20k where they upped their holding from £25 to £20,025.

That £25 could be a re-invested prize from one of the last few draws. So it's possible that the bond owner only purchased in February.

Yes that wil be it. Bought their initial £20k in February, won a £25 prize and then won the million. 

Wonder if there is any truth in the theory that buying new bonds have a greater initial chance of winning..... 

pbcpdeveloper

Type_45 said:

So it's like playing the lottery, only it ties up large amounts of your capital and you've even less chance of winning?

No, you lose your stake money playing the lottery, you get every penny back with Premium Bonds.

Type_45

pbcpdeveloper said:

Type_45 said:

So it's like playing the lottery, only it ties up large amounts of your capital and you've even less chance of winning?

No, you lose your stake money playing the lottery, you get every penny back with Premium Bonds.

But other than that, it ties up large amounts of capital and you've even less chance of winning than playing the lottery.

pbcpdeveloper

I played the lottery for many years as part of an office syndicate, we lost more than we put in of course.  I have won about £5k on Premium Bonds.

I have no problem putting £50k into Premium Bonds, I know te worst I can do is get it all back. I wouldn't even contemplate putting that into the lottery.

The capital you put in is tied up for as long as you wish.

I don't know the difference in the odds of winning in the lottery vs Premium Bonds. I know that with the lottery you will most likely lose money.

With Premium Bonds the odds of loosing any money is 0%.

The money I have in Premium Bonds would have done better in a stocks and shares ISA but I already do that.

eskbanker

Type_45 said:

pbcpdeveloper said:

Type_45 said:

So it's like playing the lottery, only it ties up large amounts of your capital and you've even less chance of winning?

No, you lose your stake money playing the lottery, you get every penny back with Premium Bonds.

But other than that, it ties up large amounts of capital and you've even less chance of winning than playing the lottery.

Obviously PBs and the National Lottery are different propositions but clearly it makes no sense to compare them on the basis of ignoring a massively significant aspect of the variance!  Put £50K into lottery tickets and your average end result will be £25K (if the split between prizes and good causes is still 50/50, I haven't checked), whereas put £50K into PBs and, as well as getting your entire £50K back at the end, you'd also expect to achieve alternating monthly returns of £25 and £50 on average.

ColdIron

Type_45 said:

pbcpdeveloper said:

Type_45 said:

So it's like playing the lottery, only it ties up large amounts of your capital and you've even less chance of winning?

No, you lose your stake money playing the lottery, you get every penny back with Premium Bonds.

But other than that

What have the Romans ever done for us?

eskbanker

ColdIron said:

Type_45 said:

pbcpdeveloper said:

Type_45 said:

So it's like playing the lottery, only it ties up large amounts of your capital and you've even less chance of winning?

No, you lose your stake money playing the lottery, you get every penny back with Premium Bonds.

But other than that

What have the Roman's ever done for us?

"Apart from that, Mrs Lincoln, how did you enjoy the play?"

[Deleted User]

Type_45 said:

So it's like playing the lottery, only it ties up large amounts of your capital and you've even less chance of winning?

Hi,

no, it's not like the lottery, with the lottery you put your money on if you don't win you lose your money, with PBs your money is safe, you put £20k if you don't win you still have your £20k.

Type_45

eskbanker said:

Type_45 said:

pbcpdeveloper said:

Type_45 said:

So it's like playing the lottery, only it ties up large amounts of your capital and you've even less chance of winning?

No, you lose your stake money playing the lottery, you get every penny back with Premium Bonds.

But other than that, it ties up large amounts of capital and you've even less chance of winning than playing the lottery.

Obviously PBs and the National Lottery are different propositions but clearly it makes no sense to compare them on the basis of ignoring a massively significant aspect of the variance!  Put £50K into lottery tickets and your average end result will be £25K (if the split between prizes and good causes is still 50/50, I haven't checked), whereas put £50K into PBs and, as well as getting your entire £50K back at the end, you'd also expect to achieve alternating monthly returns of £25 and £50 on average.

Who said anything about putting £50k on the lottery? Where did that come from?

£1 can win millions with the lottery. At about the same odds (practically speaking) of winning a million on PB.

pbcpdeveloper

From comparing the lottery to Premium Bonds.

(Havent played the lottery for years but I thought they it was more than £1 a ticket).