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Premium Bond Odds On A £30k Holding?


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  • 2 weeks later...

What are people's thoughts on PB's as a safer place than the banks for putting a large amount of cash - equally as dodgy?

Depends upon what you mean by 'large'. You can only put £30k into PBs at present, although it's supposed to be rising to £50k over the next couple of years (if memory serves).

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  • 1 month later...

What are people's thoughts on PB's as a safer place than the banks for putting a large amount of cash - equally as dodgy?

IMO they are as safe as anything else, but certainly not advisable for anyone"s whole stash, or even a good part of it of it. Of course anyone can be lucky but most people's returns are pathetic at the moment.

Best first choice for savings ATM is ISAs, IMO, esp. stocks and shares ISas paying good dividends.

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  • 11 months later...
  • 2 months later...

“If you're relying on the premium bonds to make you a millionaire there's bad news I'm afraid,” says the BBC’s head of statistics, Anthony Reuben.

But he does point out that, if bond holders put their savings in a cash ISA and bought a lottery ticket every month instead, they would have "slightly better odds" of becoming a millionaire.

http://www.theweek.co.uk/63282/premium-bond-changes-why-theyre-still-a-bad-investment

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  • 10 months later...

Someone won £10,000 with £300 worth of bonds.

Someone Won £1000 with £7 worth of bonds......................... a couple of £1000 wins on £100 worth of bonds. A £1000 win on £25 worth of bonds.etc

http://www.dailymail.co.uk/money/saving/article-1637084/Premium-Bonds-winning-numbers.html

Check the list yourself . premium bonds are completely RANDOM.

I stopped buying the lottery and have premium bonds instead.

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  • 2 weeks later...
  • 2 months later...

Average rate is 1.25% tax free. I imagine this will change because this massively beats the market for instant access savings. 

£50k over the weekend. From my 'savings' account earning 0.25%. So my 'risk' now is only £125 a year (ie lost interest)......if rates were 2.5% in my bank then my risk would be £1250 a year and one I probably wouldn't take. 

Looking foward to my big win in December. 

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2 hours ago, Phil321 said:

So my 'risk' now is only £125 a year (ie lost interest)

No. Read the small print/terms.

The terms of bonds can be changed at any time by the Government. Any time. They could suspend redemptions, change terms, cancel bonds, devalue bonds etc etc.

All it will take is a suitable 'emergency'.

So that is the major risk - a counter-party risk. 

Edited by Errol
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43 minutes ago, Errol said:

No. Read the small print/terms.

The terms of bonds can be changed at any time by the Government. Any time. They could suspend redemptions, change terms, cancel bonds, devalue bonds etc etc.

All it will take is a suitable 'emergency'.

So that is the major risk - a counter-party risk. 

Whilst I suspect my bank will have collapsed first before this is happens at NS&I.....it is a noteworthy add. Political risk probably higher than banking collapse  

Thanks. 

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  • 2 months later...
On 24/10/2016 at 10:28 AM, Errol said:

No. Read the small print/terms.

The terms of bonds can be changed at any time by the Government. Any time. They could suspend redemptions, change terms, cancel bonds, devalue bonds etc etc.

All it will take is a suitable 'emergency'.

So that is the major risk - a counter-party risk. 

But it is very easy for them to 'print' enough to cover bond holders In an emergency as well...

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  • 1 month later...
On 06/01/2017 at 8:59 PM, Economic Exile said:

I put £2200 in premium bonds about 5 years ago.

So far I've had 2 x £25 and 1 x £100. Just had an email telling me that I won two prizes, 1 x £25 and 1x £50, in the January draw.

I'm well chuffed!

Another £25 in March draw. I've put £300 in today which is my total winnings + £50. So now have £2500 in PB's.

Hope my luck continues ?

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4 minutes ago, One-percent said:

Well done,!

Thanks. Yes, I'm well pleased!

I know a couple of other people with "smallish" amounts like me and they have won a fraction of my winnings. 

Ernie draw one of my numbers out sooner for my next prize.....a bigger one, please ?

Anyway, it beats the lottery because the original money is still there!

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4 minutes ago, Economic Exile said:

Thanks. Yes, I'm well pleased!

I know a couple of other people with "smallish" amounts like me and they have won a fraction of my winnings. 

Ernie draw one of my numbers out sooner for my next prize.....a bigger one, please ?

Anyway, it beats the lottery because the original money is still there!

A lot of people argue that it is not a good investment as the capital is whittled down.  As you say though much better than playing the lottery and with interest rates where they are, why not 

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