JumboMills Posted May 3, 2007 Share Posted May 3, 2007 This may sound like a stupid question, but I have never held any PB's.... How do they credit you with your 'wins' - is it simply added to your holding total or do you get a cheque through the post? Quote Link to comment Share on other sites More sharing options...
Badger Posted May 3, 2007 Share Posted May 3, 2007 cheque in the post.. Quote Link to comment Share on other sites More sharing options...
markyh Posted May 3, 2007 Author Share Posted May 3, 2007 This may sound like a stupid question, but I have never held any PB's.... How do they credit you with your 'wins' - is it simply added to your holding total or do you get a cheque through the post? You can do either, you can ask them to reinvest winnings automatically in to new PB or post you the winnings with a thing that is basically a goverment cheque. But if you holding is £30k max you cant exceed it so no reinvestement, they just psot you the winnings cheque (I think). M Quote Link to comment Share on other sites More sharing options...
TeddyBear Posted May 3, 2007 Share Posted May 3, 2007 The same bond cant win twice, it doesn't work like that.Rather than each bond being considered for a win the computer ERNIE generates random numbers which may or may not correspond to an existing bond number. So if GR 12345678 XP is generated, if you, or anyone else has a bond bearing that number, it wint a prize. If the bond does not exist the number is discarded. Similarly once a number that has been generated has been matched to a bond, it too is finished with and will not be picked again. Do you mean twice in one month or twice ever? Surely it can't be that if a bond wins once in month, you'll never win with that bond again? I've had the max for 5 years and never done better than I would have done in a high interest account. Never won more than a prize of £100 and the last couple of months have been zilch :-( I've never been one to win competitions or similar so it's time I pulled out of the bonds I believe... 0 May :-( 0 April :-( 50 March 50 February 50 February 50 January 50 January 100 December 50 November Quote Link to comment Share on other sites More sharing options...
Casual Observer Posted May 3, 2007 Share Posted May 3, 2007 (edited) Do you mean twice in one month or twice ever? Surely it can't be that if a bond wins once in month, you'll never win with that bond again?I've had the max for 5 years and never done better than I would have done in a high interest account. Never won more than a prize of £100 and the last couple of months have been zilch :-( I've never been one to win competitions or similar so it's time I pulled out of the bonds I believe... 0 May :-( 0 April :-( 50 March 50 February 50 February 50 January 50 January 100 December 50 November A single bond can't win twice in 1 month (it would be incredibly unlikey to anyway) It can win in any subsequent month Edited May 3, 2007 by Casual Observer Quote Link to comment Share on other sites More sharing options...
evictee Posted May 3, 2007 Share Posted May 3, 2007 So, If you divide that 44 billion + by the Goverment 24000 to 1 odds, you have 1,842,887 (1.84 million) realistic chances of winning at least £50 each month? This seems a good punt to me. I should think that you are virtually gaurenteed £50 a month winnings on £30k holding... Actually, even with 30,000 bonds you still have a pretty good change of not winning anything at all in a draw. The probability of not winning a single prize in any given month would be 29%. You'd have a 2.4% chance of not winning anything for three months on the trot, which would probably be pretty annoying. Quote Link to comment Share on other sites More sharing options...
Guest Charlie The Tramp Posted May 3, 2007 Share Posted May 3, 2007 A single bond can't win twice in 1 month (it would be incredibly unlikey too anyway) It can win in any subsequent month Agreed, but a 10k block can win up to 8 times in a single month, hardly missing any month with at least a £50 prize. Thank you Ernie old chap and don`t forget it`s about time for Andrew to come calling after all these years. Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted May 3, 2007 Share Posted May 3, 2007 Won £100 today on a £11k holding. I've also won 2 x £50 so far this year, I think that's better than the pure odds. Quote Link to comment Share on other sites More sharing options...
Orbital Posted May 3, 2007 Share Posted May 3, 2007 Id suggest its worthwhile if you get something out of the excitement. For example I dont criticise people who buy lotto tickets - if it excites them then GL to them. Sadly I never expect to win anything so I just get misery from such things lol! I just see my money disapear . If not, Id suggest finding an IFA. This board is the last place id get financial advice ! Quote Link to comment Share on other sites More sharing options...
Guest X-QUORK Posted May 3, 2007 Share Posted May 3, 2007 What are the chances of winning sweet f**k all with £7,000 of Premium Bonds over the last 6 months? That's where I am. I don't think I'll bother investing in them ever again. Quote Link to comment Share on other sites More sharing options...
Casual Observer Posted May 3, 2007 Share Posted May 3, 2007 What are the chances of winning sweet f**k all with £7,000 of Premium Bonds over the last 6 months? That's where I am. About 48%! Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted May 3, 2007 Share Posted May 3, 2007 If not, Id suggest finding an IFA. This board is the last place id get financial advice ! Hey, guess where all the IFA's hang out? Quote Link to comment Share on other sites More sharing options...
0q0 Posted May 3, 2007 Share Posted May 3, 2007 Good thread. About 5 years ago when the maximum investment was £20K approx I had PBs. Poor return in my case and 2 months on trot not even a £50, so I sold them after 6 months. Call it luck, chance or whatever, there are winners and losers with PBs, it's a question of "Do you feel lucky?" and can you afford to miss out on a definite return rate from a savings account? Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted May 3, 2007 Share Posted May 3, 2007 But wouldn't it would be more lucrative to buy a couple of NS&I savings certificates (from different issues) at £15K a time, and then a couple of lottery tickets each week for the gambling element.That's got to better than holding £30K of premium bonds. Surely? The lottery is a waste of time, for starters the prize fund is only 50p for each £1 ticket sold and that's before you get onto the horrific odds. Quote Link to comment Share on other sites More sharing options...
Waitingstill Posted May 3, 2007 Share Posted May 3, 2007 £9,500 worth of premium bonds for the past 6 months.. Have not won a penny, have bought them mainly in £1000 or £2000 buys, would you have a better chance of winning if in blocks? Quote Link to comment Share on other sites More sharing options...
winkie Posted May 3, 2007 Share Posted May 3, 2007 I have £200 in Premium bonds and won £100 after holding them for 3 months. With premium bonds you have a chance of winning £1m twice each month and can cash your money in at any time, with the lottery if you don't win you have lost your money forever. Quote Link to comment Share on other sites More sharing options...
Jimmy2Times Posted May 3, 2007 Share Posted May 3, 2007 I have £200 in Premium bonds and won £100 after holding them for 3 months. With premium bonds you have a chance of winning £1m twice each month and can cash your money in at any time, with the lottery if you don't win you have lost your money forever. Same thing happened to my partner, she stuck £500 3 months ago and won £50 for first month and £50 for the second month. I did tell statistically she will probably not win anything now for at least 5 years now, he reply is typical of most females, "Whats statistics got to do with it, I've won £100 quid I'm off to the hair dressers." Quote Link to comment Share on other sites More sharing options...
winkie Posted May 3, 2007 Share Posted May 3, 2007 Same thing happened to my partner, she stuck £500 3 months ago and won £50 for first month and £50 for the second month. I did tell statistically she will probably not win anything now for at least 5 years now, he reply is typical of most females, "Whats statistics got to do with it, I've won £100 quid I'm off to the hair dressers." That's how I look at it, if you are ment to win you will whether you chance £1 or £1k. (£100 in the case of PBs). Quote Link to comment Share on other sites More sharing options...
Guest muttley Posted May 3, 2007 Share Posted May 3, 2007 I would say that mine were slightly underperforming until March, when I won £1,000. This was from a 30k holding. My results for the past six months are £50 May £100 April £1,000 March £50 January £50 December £50 November £50 November I like them cos they're tax free. Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted May 3, 2007 Share Posted May 3, 2007 Same thing happened to my partner, she stuck £500 3 months ago and won £50 for first month and £50 for the second month. I did tell statistically she will probably not win anything now for at least 5 years now, he reply is typical of most females, "Whats statistics got to do with it, I've won £100 quid I'm off to the hair dressers." If she's looking to PB to provide a secure source of income she may have 5 years of looking like a scarecrow Quote Link to comment Share on other sites More sharing options...
Layman Posted May 3, 2007 Share Posted May 3, 2007 The last time I checked, the odds of winning any prize was around 26,000:1 ... so having more than 26,000 bonds gives you the 1:1 odds of getting a cheque or bond cert through the post each month. I've got roughly £29k's worth... I see it as a relatively good tax-free return with the (admittedly small!) chance of winning big-time. I generally win £50 each month ... this month I won 1 x £100 and 2 x £50 - my best month so far. I wouldn't recommend putting 100% of your savings in it ...but I've got a good coverage of cash ISAs, stocks and shares ISAs, US stocks, savings accounts - and the PBs just make life a bit more interesting. When you haven't got a house to waste your time doing DIY on, you need *something* to while away the hours. Quote Link to comment Share on other sites More sharing options...
evictee Posted May 3, 2007 Share Posted May 3, 2007 What are the chances of winning sweet f**k all with £7,000 of Premium Bonds over the last 6 months? 17% Quote Link to comment Share on other sites More sharing options...
salamander Posted May 4, 2007 Share Posted May 4, 2007 (edited) A bit more detail on odds of winning/not winning (if I can remember properly how to do the maths...) Each bond has a 1 in 24000 chance of winning according to NS&I A single bond therefore has a 23999 in 24000 chance of NOT winning, a probability of 0.999958333 If you hold 30000 bonds, the probability of NONE of them winning is 30000 of these 0.999958333s multiplied together, which comes to 0.286497336 or 29% Therefore, in any month, the probability of this NOT being true (i.e. of winning at least one prize) comes out at around 71%.. I think Edited May 4, 2007 by narrowescape Quote Link to comment Share on other sites More sharing options...
Guest X-QUORK Posted May 4, 2007 Share Posted May 4, 2007 I'd like to feel happier for some of the regular winners, but as I've won zip all since investing six months ago I'm finding it hard to feel the love. I'll be cashing them in shortly, a bad investment for this punter. Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted May 6, 2007 Share Posted May 6, 2007 Well, so are the premium bonds a waste of time if becoming a millionaire is your objective.The point of my post was to suggest that there might be cheaper ways of recreating the same risk/reward offered by premium bonds. Perhaps if I get some time I'll get my calculator out see if I can prove it. I don't think you could, remember that PB's are re-entered into each draw and you can always draw down your principle, the lottery is all or bust. Quote Link to comment Share on other sites More sharing options...
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