Premium Bonds - Not a bean for months now!!!!

[Pork]

TheLordJohn said:

lbc said:

Pork said:

Bought back into these today. Ridiculous that the first draw will be May!

Not much different to when you start getting paid interest in a bank account.

You can reduce the wait if you deposit at the end of the month,
so for example if you deposit by 31st March, you will still be in the May draw.

As per lbc, it's not that ridiculous.
You need one full month before you're 'in'.

Fair point, just frustrating that they're basically getting the remainder of this month interest free.

[evilmunkey]

Ozzie Osmond said:

evilmunkey said:

still seems better than being locked into a bank account with bugger all return.

Hmmm

Regrettably Premium Bonds are a poor investment.

The fact payouts are commonly called 'wins' and not 'interest payments' is psychologically devious. Comments like "my friend wins £25 every few months" mislead. On clinical evaluation, someone with £5,000 of bonds should 'win' £50 a year; that's £25 per six months (and most will win less than this). Yet the same cash in savings would 'win' a guaranteed £66 EVERY year (for basic-rate taxpayers).

Premium Bonds are no "safer" than an instant access bank account and everyone except the jackpot winners will be worse off. Someone with £5,000 of bonds should 'win' £50 a year; that's £25 per six months (and most will win less than this). Yet the same cash in savings would 'win' a guaranteed £66 EVERY year (for basic-rate taxpayers).

Most people will be better off if they avoid Premium Bonds and just buy a lottery ticket every now and then....

Cheers for that, shall just have a look at what the best rates are in the banks then and go from there.

[stevensdrs]

£25 again this month. Still getting a return of about 1% on investment.

[TheLordJohn]

Pork said:

Fair point, just frustrating that they're basically getting the remainder of this month interest free.

You think that's bad, I know someone who had £120k's worth in 1995 and still only has £120k's worth now. That means his savings buy a lot less now than they could have mid 90's.
Think how much the Government has made on all the PB money with which they can invest and pay very little (more so recently) in return.
I think it's an absolute rob.

[Pork]

TheLordJohn said:

You think that's bad, I know someone who had £120k's worth in 1995 and still only has £120k's worth now. That means his savings buy a lot less now than they could have mid 90's.
Think how much the Government has made on all the PB money with which they can invest and pay very little (more so recently) in return.
I think it's an absolute rob.

They have 4x the max holdings for 20 years and not won a penny? That can't be right.

The returns use to be OK, but they tanked when interest rates went down. The government are the biggest beneficiary of low interest rates, by a long shot.

[Pork]

Before anyone says it, I know it'll be multiple holdings and it's now max of £50k not £30k.

[TheLordJohn]

Pork said:

Before anyone says it, I know it'll be multiple holdings and it's now max of £50k not £30k.

Lol I like your little extra post here.
Yes, he has won, but my point was £120k 20 years ago is still £120k now.
There's never been a big enough win to make it worthwhile over say, £120k invested in property in the same time frame.
I think it's a lot of a con, they use the 'big' prizes to get people in, but I genuinely wouldn't be surprised if the big prizes are going to people who have an affiliation/need paying off etc.

Call me a conspiracy theorist if you wish,

[Pork]

Conspiracy theorist!

That's not to say you're wrong though, who knows?

£120k in property 20 years ago would have bought a lovely place. Probably be £500k now, unless it was leveraged in London....then it would be meeyons!

[duckson]

Applied for an online account at the NS&I with the £105 in PB's i have (from my parents when i was younger!), how long does it usually take for them to reply with your logon details?

[okgo]

duckson said:

Applied for an online account at the NS&I with the £105 in PB's i have (from my parents when i was younger!), how long does it usually take for them to reply with your logon details?

Within a week I would imagine.

[gibbon]

TheLordJohn said:

You think that's bad, I know someone who had £120k's worth in 1995 and still only has £120k's worth now. That means his savings buy a lot less now than they could have mid 90's.
Think how much the Government has made on all the PB money with which they can invest and pay very little (more so recently) in return.
I think it's an absolute rob.

Imagine if he'd bought a house in islington. Ouch.

[PurpleTurtle]

Prize fund being slashed again: http://www.dailymail.co.uk/news/article-3514825/Sa...

I need to free up my 10k holding for some new wheels for the missus, we are in need of a new mumtruck. Am cashing in!

[oldaudi]

Thats the spirit! I hope more people cash out and the odds might get back to something worthwhile again for those of us staying in.

[Steamer]

PurpleTurtle said:

Prize fund being slashed again: http://www.dailymail.co.uk/news/article-3514825/Sa...

I need to free up my 10k holding for some new wheels for the missus, we are in need of a new mumtruck. Am cashing in!

Sounds terrible (not the mumtruck!).. the prize slashing.

A lot less £25's

but, 3x more £50's and £100's

[Pork]

The odds of winning the £1m? I didn't know this, but it's...,

1 in 29,557,386,997


29.5 billion to one. Makes the Euro millions look like a dead cert!

http://www.moneysavingexpert.com/savings/premium-b...

[14-7]

Pork said:

The odds of winning the £1m? I didn't know this, but it's...,

1 in 29,557,386,997


29.5 billion to one. Makes the Euro millions look like a dead cert!

http://www.moneysavingexpert.com/savings/premium-b...

Surely that's per bond though. If you have £50k in them that reduces it to 591,147.

[dalenorth]

I thought April fools was yesterday - nothing again for us!!!

[33q]

Well at least I got £25 this month. Not a sniff since January.

[MWM3]

£25 again...this is becoming a habit.

[okgo]

That grand total of £75 on nearly £90k