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  • FIRST POST
    • Former MSE Wendy
    • By Former MSE Wendy 24th Jul 07, 3:20 PM
    • 868Posts
    • 1,782Thanks
    Former MSE Wendy
    Premium Bonds Article Discussion Area
    • #1
    • 24th Jul 07, 3:20 PM
    Premium Bonds Article Discussion Area 24th Jul 07 at 3:20 PM
    This thread is to discuss the
    Premium Bonds: Are they worth it?
    article


    Also see the
    Premium Bond Probability Calculator
    to discuss the calculator specifically see the

    Premium Bond Calculator Discussion.

    To take part, click reply.
    Last edited by MSE Martin; 24-07-2007 at 5:19 PM.
Page 31
    • Chapuys
    • By Chapuys 11th May 17, 5:30 AM
    • 149 Posts
    • 115 Thanks
    Chapuys
    There is no con, it is all in the maths. There are fewer of the lower numbered bonds so there are fewer of them eligible to win prizes and so fewer appear in the published lists of winning bond numbers.

    For example, when you got bonds in the late 1950's you probably thought a 10 bond was a big investment. That's 10 chances of winning. Today people might consider 1000 in a single bond to be a big investment - 1000 chances of winning. If you look at someone who has 1010 invested in this way then it is 100 times more likely that a winning bond will be in the more recent purchase than the 1950's one.

    There are not many larger prizes in comparison to the total number of bonds, so an old low-numbered bond has to be very 'lucky' to appear in the published lists.

    The only way of checking to see if older bonds were being discriminated against would be to look at the raw data produced by Ernie before it is filtered to remove the bond numbers which no longer exist. I'm not aware that NS&I publish that data anywhere (although it is checked to confirm randomness).

    Many people who held low numbered bonds almost certainly could have become millionaires - had they not decided to give up and cash in their bonds, or pass away. Someone else had the luck to win that million.
    Originally posted by EachPenny
    If you look at the May 2017 results. Somebody with 1 bond from 1964 won 10,000.
    Anything I say in no way constitutes financial advice and anything you do is your own decision.
    • eddyinfreehold
    • By eddyinfreehold 22nd Jan 18, 12:13 PM
    • 159 Posts
    • 118 Thanks
    eddyinfreehold
    Initially you need to supply your premium bond holder number, then you can ask:

    "Alexa Ask premium bonds, have I won?"


    Is that wise? I don't think I would give my holder number or any password to a third party....
    • zolablue25
    • By zolablue25 22nd Jan 18, 1:06 PM
    • 1,584 Posts
    • 469 Thanks
    zolablue25
    Initially you need to supply your premium bond holder number, then you can ask:

    "Alexa Ask premium bonds, have I won?"


    Is that wise? I don't think I would give my holder number or any password to a third party....
    Originally posted by eddyinfreehold
    No need to give a password to check if you have won
    • yorkiebar
    • By yorkiebar 22nd Jan 18, 1:17 PM
    • 729 Posts
    • 241 Thanks
    yorkiebar
    That's right, no password required. You do need to supply your holder number though, if you're uncomfortable with that then fair enough, that's an understandable point of view.
    • beaware2018
    • By beaware2018 22nd Jan 18, 1:57 PM
    • 1 Posts
    • 0 Thanks
    beaware2018
    Premium bonds not cashing out!!!
    I am unable to cash out ANY of my Premium Bonds (this is to my NOMINATED bank account, where they do send winnings - so no problem with my bank account). EVERYTHING is done correctly online but it then tells me to phone them - I did and they said they would cash out for me on the phone, then told me it is not working. This was 4 days ago and still the same situation. They told me my Premium Bonds are 100% safe with them, but I pointed out that what use is that if I cannot get my cash out when I need it (plus it takes about 8 days from cashing out to get the money into a bank account whereas banks can transfer money INSTANTLY.) I am wondering if the UK is going broke and is trying to delay paying out (as Premium Bonds cash is held by the Treasury). With such low chances of winning and my experience of not being able to cash out, is it time to ABANDON Premium Bonds altogether?
    • Kim_13
    • By Kim_13 22nd Jan 18, 2:16 PM
    • 1,901 Posts
    • 2,035 Thanks
    Kim_13
    I always prefer to cash in via post. Here is a link to the form, if you wish to try that way: https://www.google.co.uk/url?sa=t&source=web&rct=j&url=https://www.nsandi.com/files/published_files/asset/pdf/premium-bonds-cash-in-form.pdf&ved=2ahUKEwj9-uyT3-vYAhXoJcAKHSQAD3kQFjABegQIEBAB&usg=AOvVaw362mNoMVk b-KA7Xy3TGeqA

    I've always found their online service a mess, as you can't specify which bonds you want to cash in and they always take the oldest first. Also they have that many rules on the password that I end up having to go through the forgotten password routine every time.
    Sealed Pot 11 #520 ~ /100
    VSP 2018 #9 ~ 19.55/180.00
    CCCC 2018 #1 ~ 20.75/180.00
    • MrMoore
    • By MrMoore 10th Apr 18, 7:45 PM
    • 34 Posts
    • 2 Thanks
    MrMoore
    No they are not worth it!
    I have the max 50,000 in the premium bonds and have won zilch. If I had put the 50,000 in a loyalty ISA with the Nationwide at 1.4% I would have won 58.33 a month leaving me to squander it on the Lottery as and when I saw fit. In June I'm predicting an interest rate rise so if I'm not a millionaire by then I'm taking the lot out. Sorry government but I have to think of me sometimes although I know you need the money to put some tarmac in a few pot holes here and there. Or I think I stand a better chance gambling on the currency markets buying Euros before they go down in value after my predicted June interest rate rise.
    • MrMoore
    • By MrMoore 10th Apr 18, 7:52 PM
    • 34 Posts
    • 2 Thanks
    MrMoore
    UK is broke my dear!
    I am wondering if the UK is going broke and is trying to delay paying out (as Premium Bonds cash is held by the Treasury).
    Originally posted by beaware2018

    UK is broke and it can't be labours fault as they haven't been in power for donkeys years. Otherwise people wouldn't be left waiting for a hospital bed in agony as the NHS can only afford to treat cancer patients and pots holes are far to expensive to be repaired these days too. I would chuck a bag of cement in our worst one on the road but I expect I would be fined.
    Last edited by MrMoore; 10-04-2018 at 7:57 PM. Reason: spellling mistake :-)
    • eskbanker
    • By eskbanker 11th Apr 18, 12:06 AM
    • 7,878 Posts
    • 8,741 Thanks
    eskbanker
    I have the max 50,000 in the premium bonds and have won zilch.
    Originally posted by MrMoore
    You've obviously been unlucky then - it's only a 13% chance of not winning anything in a given month from a 50K holding, and a tiny 1 in 456 chance of not winning anything over three months.

    If I had put the 50,000 in a loyalty ISA with the Nationwide at 1.4% I would have won 58.33 a month leaving me to squander it on the Lottery as and when I saw fit.
    Originally posted by MrMoore
    It would have taken you over two years to get 50K into an ISA though, given annual allowances.

    In June I'm predicting an interest rate rise so if I'm not a millionaire by then I'm taking the lot out. Sorry government but I have to think of me sometimes
    Originally posted by MrMoore
    I'm sure the government will be distraught at the loss of 0.000068% of their PB pot and will be making emergency financial contingency plans as we speak....

    I think I stand a better chance gambling on the currency markets buying Euros before they go down in value after my predicted June interest rate rise
    Originally posted by MrMoore
    Just as well you have a unique insight into currency futures that nobody else in the market has then!
    • teddysmum
    • By teddysmum 11th Apr 18, 9:20 PM
    • 9,070 Posts
    • 5,416 Thanks
    teddysmum
    This month neither of us won and that has not happened before in the last 12 months. 150 between us last week and we are averaging over the quoted interest rate.
    • kidmugsy
    • By kidmugsy 11th Apr 18, 9:56 PM
    • 11,398 Posts
    • 7,931 Thanks
    kidmugsy
    This month neither of us won and that has not happened before in the last 12 months. 150 between us last week and we are averaging over the quoted interest rate.
    Originally posted by teddysmum
    You may have noticed that Premium Bond threads attract all sorts of nutters, united in their conviction that it's all a fraud, and equally united in their ignorance of probability calculations. Thank you for your voice of sanity.
    Free the dunston one next time too.
    • KenSim
    • By KenSim 12th Apr 18, 10:13 AM
    • 8 Posts
    • 5 Thanks
    KenSim
    I have wasted around 50 each month for years now on the National Lottery and had very little luck , so I have stopped doing that and put 50 into Premium Bonds every month. Its still a gamble but at least I am not losing money every month.I don't look at it as savings or investments.
    • eskbanker
    • By eskbanker 12th Apr 18, 11:28 AM
    • 7,878 Posts
    • 8,741 Thanks
    eskbanker
    at least I am not losing money every month.I don't look at it as savings or investments.
    Originally posted by KenSim
    You may no longer be losing as much every month as you were on the lottery, but of course your money is still losing its value to inflation even if you have average luck with your PBs, given the return (1.4% mean, more like 1.2% median, but subject to much more volatility for a small holding) is significantly below inflation....
    • PParka
    • By PParka 16th Apr 18, 12:56 PM
    • 194 Posts
    • 70 Thanks
    PParka
    Buying Premium Bonds by Standing Order
    Hi,

    I've just started to buy a few Premium Bonds by standing order each month.
    The money has been taken from my account, but no new Premium Bonds have appeared in my NS&I account yet.
    Does anyone know how long it takes for NS&I to process the new Premium Bond purchase?

    Thanks
    Parka
    • teddysmum
    • By teddysmum 16th Apr 18, 1:07 PM
    • 9,070 Posts
    • 5,416 Thanks
    teddysmum
    I bought my last batch 16k via the website and was given the bond numbers immediately, followed by a snail mail confirmation.
    • LesD
    • By LesD 22nd Apr 18, 3:30 PM
    • 2,051 Posts
    • 660 Thanks
    LesD
    HELP. Has anyone actual experience of what happens with (grand)childrens' PBs when they reach 16? Can't find anything in their T&Cs and the 'helpline' says to 'write to them'!!!
    • spendinglikemad
    • By spendinglikemad 24th Apr 18, 11:37 AM
    • 287 Posts
    • 1,639 Thanks
    spendinglikemad
    I rang the NS & I line yesterday to find out what I need to do to cash-in and purchase more PBs for my kids (grandparents bought them PB when they were born) so the one who is over 16 has to sign the form himself (cash in form) and I cannot buy more on his behalf - he has to buy them and we also need a letter with his witnessed signature - what a faff!!!

    Also to buy more for my daughter I have to write another letter to be 2nd named responsible person to act on her behalf (she is under 16) and as hubs is named person we have to go down this route (MIL set up account thinking hubs would do anything admin related!! hahahahaha)

    So I now have 2 letters to sort, 2 lots of cash in forms and then 2 new accounts to set up to buy more!!

    SLM
    Family of 4 plus cat & pup!
    • SeeMe
    • By SeeMe 24th Apr 18, 12:24 PM
    • 95 Posts
    • 16 Thanks
    SeeMe
    I bought my last batch 16k via the website and was given the bond numbers immediately, followed by a snail mail confirmation.
    Originally posted by teddysmum
    Did you do the 16k in one go on a debit card. I was going to put a maturing savings account over 10k into some bonds, but always thought the the banks fraud flag gets raised with any debit card payment over 10k.
    Last edited by SeeMe; 24-04-2018 at 12:29 PM.
    • eskbanker
    • By eskbanker 24th Apr 18, 1:26 PM
    • 7,878 Posts
    • 8,741 Thanks
    eskbanker
    Did you do the 16k in one go on a debit card. I was going to put a maturing savings account over 10k into some bonds, but always thought the the banks fraud flag gets raised with any debit card payment over 10k.
    Originally posted by SeeMe
    It'll probably vary according not just to which bank but also personal transaction profile, destination of funds, etc - if it was known that all transactions over 10K would be viewed as suspicious then there'd be a lot of 9,999 transactions! I've certainly made >10K debit card transactions recently without issue but have sometimes had smaller ones held, so don't believe there's any standard limit....
    • SeeMe
    • By SeeMe 24th Apr 18, 2:10 PM
    • 95 Posts
    • 16 Thanks
    SeeMe
    It'll probably vary according not just to which bank but also personal transaction profile, destination of funds, etc - if it was known that all transactions over 10K would be viewed as suspicious then there'd be a lot of 9,999 transactions! I've certainly made >10K debit card transactions recently without issue but have sometimes had smaller ones held, so don't believe there's any standard limit....
    Originally posted by eskbanker
    Yes i see what you mean, also i have decided to put the money in another savings account with a so called challenger bank ( just about the best interest rate) and only one deposit can be made on account opening, so i will have to go over the 10k in one go.Don't want any current accounts savings route.
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