Online Premium Bond account
Comments
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ValiantSon wrote: »
1) You really just don't understand the maths.
2) You are the kind of person who can just never admit that they are wrong about something.
3) You are a troll.
Wrong on all three. But I think we're done for the sake of others reading the thread.0 -
assume most people have given them consideration and decided they are worth the gamble as that is what they are a gamble not a savings product.Or you could end up telling someone who spends £5 a week on the lottery about regular savings products next(but yes that might be a better choice as well)ValiantSon wrote: »If you are happy in the knowledge that inflation is eroding the value of your deposits at a faster rate than in an interest bearing account, and you just like having the chance of winning some money, then that's fine. What i object to is people being advised or encouraged to put their savings into premium bonds without any consideration of whether it is actually a suitable product.
By the way, your money is just as safe in any FSCS covered bank (or in an NS&I savings account or bond).0 -
ValiantSon wrote: »If you are happy in the knowledge that inflation is eroding the value of your deposits at a faster rate than in an interest bearing account, and you just like having the chance of winning some money, then that's fine. What i object to is people being advised or encouraged to put their savings into premium bonds without any consideration of whether it is actually a suitable product.
By the way, your money is just as safe in any FSCS covered bank (or in an NS&I savings account or bond).
I'm not too fussed. It's there for emergencies. It takes a few days to access so makes you think twice if you need the money out. Last year I got near the 'interest rate', for me it's just free fun as its not wasting money rather than doing the lottery like many folk (there was a guy I was recently dating wasting £60 a week on lotteries - to me that's a waste. My money is there if I need it, theirs just goes to the bookies/ Canadian pensioners:T:T :beer: :beer::beer::beer: to the lil one
:beer::beer::beer:0 -
PeacefulWaters wrote: »Wrong on all three. But I think we're done for the sake of others reading the thread.
Has to be one of the three, but doubt you have the courage to admit any of them. Your reply suggests strongly which of the three it is.0 -
assume most people have given them consideration and decided they are worth the gamble as that is what they are a gamble not a savings product.Or you could end up telling someone who spends £5 a week on the lottery about regular savings products next(but yes that might be a better choice as well)
I wasn't preaching. I was acknowledging that some people are happy with the product knowing that it is not a savings product.0 -
ValiantSon wrote: »The average return on £50,000 is £500 per year, which is 1%.
Not taking sides, but https://www.moneysavingexpert.com/savings/premium-bonds does seem to show % values greater than that for £15,000 (£200, 1.33%) and £31,000 (£400, 1.29%).
You'll need to read the article to see the full reason why you get a lower rate (1.29%) for the higher sum (£31,000) - the quick read is that it's to do with lumpy £25 prizes 0 -
Not taking sides, but https://www.moneysavingexpert.com/savings/premium-bonds does seem to show % values greater than that for £15,000 (£200, 1.33%) and £31,000 (£400, 1.29%).
You'll need to read the article to see the full reason why you get a lower rate (1.29%) for the higher sum (£31,000) - the quick read is that it's to do with lumpy £25 prizes
Thanks. I obviously didn't include all possible sums as that would be a very long post!
Those return rates may well be true, but of course those returns are just in the region of the better paying savings accounts, and are for the median average return, so half of all bond owners won't actually get that.0 -
£500 being the median return doesn't mean that half won't get it, that's not how medians work (it's closer to how the mean behaves though)! The same calculator gives the odds of winning at least £500 as 87% not 50%....ValiantSon wrote: »Those return rates may well be true, but of course those returns are just in the region of the better paying savings accounts, and are for the median average return, so half of all bond owners won't actually get that.
To take a more extreme example of lumpy statistics, the mean number of legs per human is 1.99999.... but the median will be 2 and it would clearly be untrue to claim that half the population would be less than the median!0 -
£500 being the median return doesn't mean that half won't get it, that's not how medians work (it's closer to how the mean behaves though)! The same calculator gives the odds of winning at least £500 as 87% not 50%....
Yes, okay, poor choice of words. I actually meant to say that many would not get that.0 -
.fly-catchers wrote: »That guy on my round who regularly wins got 4 wins today! And 3 last month.. Always seems grumpy though!
For what its worth WE have the full wack in p-bonds , and we have won 7x£25 this month, infact we have won every month since we bought the bonds.
We have fully maxed the 123 accounts and regular savers etc, so thats why we spent the surplus,0
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