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Premium Bonds Are Suddenly Good Value

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The "return" on Premium Bonds has just gone up by 50% - to a massive 1.5% TAX FREE!!

A sad rate, but actually competitive if you factor in the tax free, instant access, nature of the product. There are plenty of bank accounts which pay less. I ditched most of my PBs a couple of years back, but I'm getting tempted back.

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Premium bonds don't allow compound interest which I think makes them an investment only suitable for those who are organised enough to take all their winnings and reinvest them in something interest-earning, rather than just spend them.

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PB's aren't great value in the long run admittedly but last month they won me 75 quid, compared to a smilar amount in my "high" interest savings account which netted about 15....I think they're always worth a punt if you have the money to do it.

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Premium bonds don't allow compound interest which I think makes them an investment only suitable for those who are organised enough to take all their winnings and reinvest them in something interest-earning, rather than just spend them.

Actually they will re-invest your winnings for you with some advantageous conditions, provided it doesn't take you over the £30K limit. That's their version of compund interest.

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Actually they will re-invest your winnings for you with some advantageous conditions, provided it doesn't take you over the £30K limit. That's their version of compund interest.

Sorry, the 30k limit is the issue, yes. Agreed. Apologies for confusion. For me if I did it I'd do 30k which would mean I'd hit it straight away.

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PB's aren't great value in the long run admittedly but last month they won me 75 quid, compared to a smilar amount in my "high" interest savings account which netted about 15....I think they're always worth a punt if you have the money to do it.

There are people on this site that spend years scavenging the streets for that sort of money!

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I ditched most of my PBs a couple of years back, but I'm getting tempted back.

I had PBs for years & seemed to fund everyone else with them, esp. when I had the max. hoding.

I finally ditched mine in favour of that useless yellow metal that is so disliked on here.

It was around 700$ at the time; though I'm fully aware that this time next week it will be 300$,

but I still can't persuade myself to sell in favour of pretty paper, ink, & the German tenants head.

Rabbit - Headlights - Ah, who cares .....

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not wishing to push T*sco but they have just extended my 3.00% (including bonus) instant access internet saver for another 12 months - have to say it is tempting to keep more of my money with them than with the others who keep giving good rates to 'new' customers. Never won anything on premium bonds even if tax free but then only have a small amount with them.

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not wishing to push T*sco but they have just extended my 3.00% (including bonus) instant access internet saver for another 12 months - have to say it is tempting to keep more of my money with them than with the others who keep giving good rates to 'new' customers. Never won anything on premium bonds even if tax free but then only have a small amount with them.

Isn't Tesco Finance a joint venture between Tesco and the people's favourite Government backed bank RBS? Market manipulation I suspect.

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It's probably quite good for a higher rate tax payer but bear in mind that very few will achieve the quoted interest rate in prize money because of the low probability of winning one of the huge prizes.

I had the maximum holding several years ago and won 10 prizes in a year but all were the lowest amount and my actual rate of "interest" was not at all attractive.

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The "return" on Premium Bonds has just gone up by 50% - to a massive 1.5% TAX FREE!!

A sad rate, but actually competitive if you factor in the tax free, instant access, nature of the product. There are plenty of bank accounts which pay less. I ditched most of my PBs a couple of years back, but I'm getting tempted back.

Maybe one of my numbers will come up in October, then. But I'm not holding my breath.

I've won a princely £200 this year - on the max holding. Not a sausage since May. :(

Won't be cashing them in, though. If I do, one of my numbers is bound to come up for the big one, and some other b*gger will get it.

Not that I'm superstitious or anything ;)

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Maybe one of my numbers will come up in October, then. But I'm not holding my breath.

I've won a princely £200 this year - on the max holding. Not a sausage since May. :(

Won't be cashing them in, though. If I do, one of my numbers is bound to come up for the big one, and some other b*gger will get it.

Not that I'm superstitious or anything ;)

It's not really like that. If you sell your bonds those numbers are deleted and are not 'in the draw' so to speak. They constantly issue new bonds as they are bought, they aren't recycled. Which is good, because after winning £75 twice on £5k over 4 years, I sold most of them. Kept £1k, because, as you say, you never know!

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It's not really like that. If you sell your bonds those numbers are deleted and are not 'in the draw' so to speak. They constantly issue new bonds as they are bought, they aren't recycled. Which is good, because after winning £75 twice on £5k over 4 years, I sold most of them. Kept £1k, because, as you say, you never know!

Ah! Thanks for that. Because a couple of years ago I cashed in a stack of reinvested bits and pieces of prizes and made them up to a big block instead. And ever since I'd had a sneaky feeling that I should have just held on to the bits and pieces - sod's law dictating that one of the numbers would come up as soon as someone else bought them.

I had a theory that big blocks win more - can't say I did any better, though - if anything I did slightly worse, and that was when IRs were going up.

Certain sets of numbers always seem to do better. A certain block of Mr B's has always done rather better than any of his others, not to mention coming up with the only bigger prize we've ever had. (£500) Ernie's Random Thing is not quite as random as they like to make out.

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