Premium Bond Winner ?

Lopo

mayb wrote:

Bit puzzled here, how can a win on the Premium Bonds be at the expense of someone else? If you put £1 on the lottery and you lose - that's it £1 gone. If you put £1 in Premium Bonds and you don't win - you have still got your £1. So fun at no expense to anyone - including youurself.

Very True...

Lopo

mroller wrote:

If he wins beyond the average of 3.1% then it's done at the expense of the other people who bought PB.

HTH

eh!? "expense"...? ...not quite an accurate or factually valid point.

you make it sound as if the 3.1% is guaranteed when it is not; nor do NS&I market Premium Bonds as such.

Its a gamble of the interest as has been frequently mentioned, in the hope of winning a variety of prizes. Simple as that.

Should not be read into any other way.

Gorgeous_George

:wall:

You put a pound on the lottery and around half of it is gambled. If you lose, some of your half-a-pound is given to other, more fortunate gamblers. The other half-a-pound goes to the so-called good causes and administration.

You put a pound on the premium bond and nothing happens for a month. Then about 0.5 pence (equivalent of the interest that you could have earned in an ISA) is reduced to nearer 0.35p (equivalent to the non-remarkable rate made up from time to time by the Government). It is this 0.35p that is gambled. Lose, and your 0.35p is shared by the winners.

It's late and Al Murray is back on.



GG

mayb_2

All of this loss to yourself and other people is totally notional - I haven't felt a thing when I haven't won - and fortunately perhaps have won. in the 6 months I have had premium bonds, enough to cover any interest I may have earned elsewhere. £250.00 from a £3000 investment. Having said that I don't think investment is the main reason people buy premium bonds - I think it is more in the line of a gamble at no expense - you have to be in it to win it.

My money is in Premium Bonds because my winnings are tax free and nobody can turn around in a few years time and say - did you think you were getting x amount return on that investment of yours - but hey sorry now it has turned into half of that or even nothing at all. I do also have a cash ISA same reason as above. I can deal with ISAs and Premium Bonds myself all alone and with no payment to anyone else which is quite appealing too.

meanmachine_2

Lopo wrote:

eh!? "expense"...? ...not quite an accurate or factually valid point.

you make it sound as if the 3.1% is guaranteed when it is not; nor do NS&I market Premium Bonds as such.

Its a gamble of the interest as has been frequently mentioned, in the hope of winning a variety of prizes. Simple as that.

Should not be read into any other way.

Your posts are inaccurate. If you don't understand simple opportunity costs you need to think about if you should be "investing" at all.

There is a finite amount of money in the prize pot. We've ALL contributed to it, putting our 3.4% interest into it. Remember I can easily get that 3.4% anywhere else I please GUARANTEED.

For one person to win a million quid of that prize pot tens of thousands of others will have lost out.

That's how it works. It isn't rocket science.

If you honestly think premium bonds are risk free you need your head examined.

Robinmsa

I've won didly squat once again, but I have won £250 in the last 12 months.

£50 Jan, £50 Feb this year, best month ever is £100

Graham_Devon

Of course it's a gamble. I'm also very down so far (to the tune of £300).

However, I leave a small amount of what I have in the pot, just incase one day I'm one of the lucky ones (talking anything above £1000 - not just the million, in fact I wish they would get rid of the millions and give a load more smaller prizes).

mayb_2

Most of the ordinary people out there (including myself) do not know enough about investments but we sure find out when they don't pay out. I agree we should not be going into what we don't understand. However, Premium Bonds are both simple to understand and easy to operate whatever your knowledge of investments, you can even apply through Tesco's now - long live the Premium Bond - afer all it is entirely voluntary and yes it is fun.

lestamunda

Won £200 (£100 + £50 + £50) this month

Won £150 (£100 + £50) last month

More than happy with that!!!

nrsql

Gorgeous_George wrote:

meanmachine is so right

Any 40% taxpayer with premium bonds is likely to 'win' a good return. Ths is at the expense of non-taxpayers and basic rate taxpayers. Like Robin Hood, but in reverse. You know, like when Maggie was in power.

Only this time, its voluntary.



GG

Good. It's good that the high tax contributors receive some benefit at the expense of those that fail to contribute much through their tax burdon .
After all PBs are a contribution to the treasury which benefits society (just like the lottery good causes) so it's right that people who have already contributed more receive more benefit.

And no, that isn't serious.