premium bonds (merged)

YorkshireBoy

Maddie wrote:

Does anybody know what the funds are invested in?

I would quite like to invest my money in a reasonably ethical way, and thought this might be one way of doing it.

Just had a look on the nsandi website and couldn't find any info at all.

"As an Executive Agency of the Chancellor of the Exchequer, we aim to provide the Exchequer with a source of financing (i.e. public borrowing)"

http://www.nsandi.com/privacy/backedbytreasury.jsp

So, I suppose it depends on whether you think Gordon Brown and the Government would spend your money "ethically".

Maddie

It is not written very clearly, does that mean that all money invested in premium bonds is for the use of the government?

If so, then it would be 'ethical' enough for me, especially when I see tax as being like a compulsory charitable contribution (strange way of looking at it I know!).

YorkshireBoy

Maddie wrote:

It is not written very clearly, does that mean that all money invested in premium bonds is for the use of the government?

I'm no expert but...

Like the rest of us, the Government needs to borrow money. When borrowing from the premium bonds fund, they enjoy an "interest rate" of around 3%, and the loan repayments are paid back to the fund to be distributed in the form of prizes.

The rest of us will pay substantially more than 3% for our loans!

philltowns

Sounds fair enough to me. As long as they're not ripping off some Third World country.

Nick_C_4

Surely our government, and most others, would fail most definitions of ethical investing? Remember our government spends billions on weapons (including weapons of mass destruction and anti-personnel mines), authorises weapons sales to nasty foreign dictatorships, invades other countries, puts money into animal research etc etc. I'm sure if you looked hard enough, you could find them "ripping off some Third World country" too.

Presumably if you voted for the current government, you've already approved all these activities, so it shouldn't be a problem for you.

Mr_Mumble

Nick_C wrote:

Surely our government, and most others, would fail most definitions of ethical investing?

Depends entirely what you personally consider ethical. I am happy that we aren't a USSR outpost thanks to those WMDs, would support the use of anti-personnel mines to stop the slaughter of an outnumbered British troop and am glad a few rodents die to help humans live. For me Premium Bonds are far more unethical, getting the taxpayer to lend to the government at 3%, absurd.

ManAtHome

Mr_Mumble wrote:

For me Premium Bonds are far more unethical, getting the taxpayer to lend to the government at 3%, absurd.

Costs 'em more if you're a taxpayer...

Maddie

Ok, so maybe not all that ethical!

I suppose it depends entirely on how you look at it, I least you do have some sort of idea of what your money is being used for though.

SAP_Saver

I have £1000 of PBs and have had for almost 6 months I bought them to test the water really before investing in them more heavily. I have spoken to various people I know who hold the maximum PBs one of which swears by them and seems to almost live of his winnings. Another says she has only won £50 in 6 months, this variation of results alarms and upsets me as I was hoping for an easy million - hey aren't we all...!

PS. No politics please! This is about money saving!