scc
Member of DD Central
Posts: 214 
Likes: 163
|
Post by scc on Jan 7, 2020 22:36:45 GMT
Minus inflation. Plus any winnings you might make. Minus any interest you might have made in the first month. Alright, I've had enough trying to spell it out. Yeah, and I'm a bit disappointed with your selective quoting, but we can't have everything. I think my posts make it pretty clear that I'm basically agreeing with you, but there are subtleties depending on how much you invest. If you invest £25 for 50 years, you're clearly only in it for the potential of winning the jackpot as it'll have lost almost all of its spending power and the chances of winning anything are low. £50K, yep - it's a safe haven if the brown stuff hits the fan. You don't use premium bonds if interest or maintaining spending power is your primary concern. But it's clear they offer the equivalent of some interest and that you are getting an entry to the equivalent of a £1m lottery each month. But that's OK, because as others have posted there's a bit of excitement associated with Premium Bonds, some tax advantages and as you have suggested, it's a pretty darn safe way of stashing cash.
|
|
|
|
Post by gravitykillz on Jan 8, 2020 19:58:12 GMT
Alright, I've had enough trying to spell it out. Yeah, and I'm a bit disappointed with your selective quoting, but we can't have everything. I think my posts make it pretty clear that I'm basically agreeing with you, but there are subtleties depending on how much you invest. If you invest £25 for 50 years, you're clearly only in it for the potential of winning the jackpot as it'll have lost almost all of its spending power and the chances of winning anything are low. £50K, yep - it's a safe haven if the brown stuff hits the fan. You don't use premium bonds if interest or maintaining spending power is your primary concern. But it's clear they offer the equivalent of some interest and that you are getting an entry to the equivalent of a £1m lottery each month. But that's OK, because as others have posted there's a bit of excitement associated with Premium Bonds, some tax advantages and as you have suggested, it's a pretty darn safe way of stashing cash. I think it's best not to keep large sums in PB for too long. When the economy improves chuck them in better products or inflation will kill your money over too long a period.
|
|
|
|
Post by gravitykillz on Jan 8, 2020 20:00:20 GMT
I wish the guaranteed growth bonds were still available. They originally were offering 2.20% for 3 years. However they are no longer available. Every few years NSI have a really good product available for a very short period of time.
|
|
mrk
Posts: 807
Likes: 753
|
Post by mrk on Jan 8, 2020 21:53:18 GMT
I am hoping for a big prize someday. It's cheaper than the national lottery! I hope to inherit a huge sum from an unknown relative one day. Dreams are free.
|
|
|
|
Post by gravitykillz on Mar 3, 2020 18:36:37 GMT
Won £75 in dec. Nothing in jan. £50 in feb. And £25 this month. On a £36k investment. Is that good or bad ?
|
|
|
|
Post by gravitykillz on Mar 3, 2020 18:37:32 GMT
Winnings are declining faster than trumps reputation.
|
|
|
|
Post by df on Mar 3, 2020 18:51:44 GMT
Won £75 in dec. Nothing in jan. £50 in feb. And £25 this month. On a £36k investment. Is that good or bad ? If you don't win any more until next December your rate will be 0.41%, if you keep getting £150 every 4 months it will be 1.23%. Even in this current hostile climate you can get more than that from bank accounts on 36k.
|
|
|
|
Post by gravitykillz on Mar 3, 2020 19:24:46 GMT
I think I will give it one more month then shove the cash into marcus.
|
|
|
|
Post by gravitykillz on Mar 3, 2020 19:25:22 GMT
Premium bond rates are dropping from may.
|
|
Greenwood2
Member of DD Central
Posts: 4,241
Likes: 2,686
|
Post by Greenwood2 on Mar 3, 2020 20:49:18 GMT
Winnings are declining faster than trumps reputation. It's just a safe place to stash some cash tax free, with a possible chance of a big win. If you have a better place to use it do so.
|
|
|
|
Post by df on Mar 3, 2020 20:59:26 GMT
I think I will give it one more month then shove the cash into Marcus. Yes, the benefit is - you will know exactly what your return is.
|
|
|
|
Post by bernythedolt on Mar 12, 2020 14:56:08 GMT
Won £75 in dec. Nothing in jan. £50 in feb. And £25 this month. On a £36k investment. Is that good or bad ? It's spot on. The monthly odds of a single PB winning a prize are currently 24500 to 1 (moving to 26000 to 1 in May 2020). With 36000 bonds, your monthly expectation is 36000/24500 = 1.469 prizes. After 4 months, that's 4 x 1.469 = 5.88 prizes. Since the great majority of prizes are £25, you would have expected to win 5.88 x 25 = £147. You've actually won £150. [Mathematically this is a slightly simplified view, but good enough for this purpose].
|
|
