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Post by geofft on Aug 13, 2020 14:08:05 GMT
Soo....to avoid your 'gamble' you'd have buy a lottery ticket that gave you all your money back if you didn't win the big prize, and even gave you a little bit of interest on your outlay. Not sure where you're going to find one of those.
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macq
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Post by macq on Aug 13, 2020 14:19:19 GMT
Soo....to avoid your 'gamble' you'd have buy a lottery ticket that gave you all your money back if you didn't win the big prize, and even gave you a little bit of interest on your outlay. Not sure where you're going to find one of those. Well i would gamble on a premium bond as its a free bet & not try to avoid unless that little bit of interest was guaranteed (and if it was it might be an investment )
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aju
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Post by aju on Aug 13, 2020 14:34:03 GMT
Soo....to avoid your 'gamble' you'd have buy a lottery ticket that gave you all your money back if you didn't win the big prize, and even gave you a little bit of interest on your outlay. Not sure where you're going to find one of those. Well i would gamble on a premium bond as its a free bet & not try to avoid unless that little bit of interest was guaranteed (and if it was it might be an investment ) I'm with you now its not a gamble as such just a potential store point perhaps with possible benefits up to 1.4% 1.2% (see next post). I have a list of rates I'm happy to work with I'll add this in my list I guess. How quick can one get the money back should one want it, although to be fair I'm not working with day to day or even emergency funds here.
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Post by Deleted on Aug 13, 2020 14:48:15 GMT
Although the prize fund is based on 1.4%, some of that is used to pay the jackpots which benefit only the odd one or two. Assuming you have a large holding, you should expect more like 1.2%, with more variability the less you hold. You need to use median returns rather than the mean to get a better picture of expected prizes, remembering that the minimum prize is £25. The MoneySavingExpert premium bond calculator is useful/fun to play with. www.moneysavingexpert.com/savings/premium-bonds-calculator/
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aju
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Post by aju on Aug 13, 2020 15:03:59 GMT
Although the prize fund is based on 1.4%, some of that is used to pay the jackpots which benefit only the odd one or two. Assuming you have a large holding, you should expect more like 1.2%, with more variability the less you hold. You need to use median returns rather than the mean to get a better picture of expected prizes, remembering that the minimum prize is £25. The MoneySavingExpert premium bond calculator is useful/fun to play with. www.moneysavingexpert.com/savings/premium-bonds-calculator/Thanks, Mrs Aju is currently getting 1.2% with marcus but it ends this month, I am currently working with the new halifax deals but next place was targeting NS&I Income bonds at 1.15/1.16% for large amounts we will be putting bulk in there I feel but I'll consider my options at the end of the month if nothing else turns up it maybe worth a try for say a bit of spare the cash. Can you do PB without the postman being involved I.e direct if one already has an account with NS&I
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Post by Deleted on Aug 13, 2020 15:08:02 GMT
Thanks, Mrs Aju is currently getting 1.2% but it ends this month, I am currently working with the new halifax deals but next place was targeting Income bonds at 1.15/1.16% for large amounts we will be putting bulk in there I feel but I'll consider my options at the end of the month if nothing else turns up it maybe worth a try for say a bit of spare the cash.I don't think I'd put less than, say, 30k into premium bonds or there's a good chance you'll win nothing. The smoothest returns will be from investing the maximum of 50k. Have a play with the calculator above to see expected returns. Of course, the minimum holding can win £1 million, but you're more likely to be run over by a bus.
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bt
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Post by bt on Aug 13, 2020 15:15:58 GMT
Can you do PB without the postman being involved I.e direct if one already has an account with NS&I Yes!
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aju
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Post by aju on Aug 13, 2020 15:25:36 GMT
Thanks, Mrs Aju is currently getting 1.2% but it ends this month, I am currently working with the new halifax deals but next place was targeting Income bonds at 1.15/1.16% for large amounts we will be putting bulk in there I feel but I'll consider my options at the end of the month if nothing else turns up it maybe worth a try for say a bit of spare the cash.I don't think I'd put less than, say, 30k into premium bonds or there's a good chance you'll win nothing. The smoothest returns will be from investing the maximum of 50k. Have a play with the calculator above to see expected returns. Of course, the minimum holding can win £1 million, but you're more likely to be run over by a bus. Thanks i'll have a play, not sure I want to put 50K in there but it is possible though. With the fact we are not going anywhere much since start of lockdown I have a better chance of winning the PB million than the bus getting me unless its well off route and comes through my back garden into the my office. Mind you we did have to brave plymouth a week or so back to help our son with a new mattress so i spose a bus might have run into us then on the A303 or the M5 ...
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ceejay
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Post by ceejay on Aug 13, 2020 15:29:14 GMT
Although the prize fund is based on 1.4%, some of that is used to pay the jackpots which benefit only the odd one or two. Assuming you have a large holding, you should expect more like 1.2%, with more variability the less you hold. You need to use median returns rather than the mean to get a better picture of expected prizes, remembering that the minimum prize is £25. The MoneySavingExpert premium bond calculator is useful/fun to play with. www.moneysavingexpert.com/savings/premium-bonds-calculator/ Caution! I seem to remember a long discussion on that calculator (on this forum somewhere?) which revealed that it is deeply flawed. However, the sentence I've bolded I entirely agree with. Currently about 10% of the prize fund goes to the big prizes.
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aju
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Post by aju on Aug 13, 2020 15:34:42 GMT
Although the prize fund is based on 1.4%, some of that is used to pay the jackpots which benefit only the odd one or two. Assuming you have a large holding, you should expect more like 1.2%, with more variability the less you hold. You need to use median returns rather than the mean to get a better picture of expected prizes, remembering that the minimum prize is £25. The MoneySavingExpert premium bond calculator is useful/fun to play with. www.moneysavingexpert.com/savings/premium-bonds-calculator/ Caution! I seem to remember a long discussion on that calculator (on this forum somewhere?) which revealed that it is deeply flawed. However, the sentence I've bolded I entirely agree with. Currently about 10% of the prize fund goes to the big prizes. yeah I picked up the 1.2% in that post but thanks. I tried the tool I think I had seen it before - i'll search for the deeply flawed thread when I'm considering my options unless someone else knows where it is of course. Thanks for helping
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Post by Ace on Aug 13, 2020 15:36:31 GMT
I'm very happy to keep my 2nd tier emergency cash in PBs. Virtually instant access, government protected capital, 1.2ish % interest, occasional larger prizes and a very small chance of winning big.
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morris
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Post by morris on Aug 14, 2020 6:36:50 GMT
I agree that premium bonds in reality pay 1.2%, and any more is a bonus. That 1.2 equates to 2% for higher rate taxpayers and 1.5 standard rate taxpayers. On that basis in the current climate I'm in.
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Post by carol167 on Aug 14, 2020 9:16:01 GMT
I have averaged 1.53% a year since October 2006 - I've always been invested with the most you can have. So far this year I am on 1.25%.
Premium bonds are a great choice if you : a) have spare cash that you don't know what to do with and are already maxed out to your comfort level on your other investments. b) you want somewhere safe to dump spare cash for short term access. c) under the current circumstances with cash savings rates being so low everywhere else, it's as good a choice as any savings account - ordinarily that wouldn't be the case.
Most single win I've had is a £500 back in 2007.
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Post by dan1 on Aug 17, 2020 9:27:46 GMT
If you are about to retire and are saying the money might be needed to last 40 years (as you say), I would suggest you at least consider adding buying an annuity and add that to you list. W35 Annuities can step in to provide a minimum income in the absence of a defined benefit pension. There are increasing numbers of folk retiring with just the state pension + cash/investments/property, the latter of which is very much dependent on you retaining your cognitive ability Edit: forgot the whole point of posting: I'd like to see the government stepping in to boost annuity rates instead of, say, bolstering NS&I rates. I've not thought through the implications but hey, gotta make sense?
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coogaruk
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Post by coogaruk on Aug 17, 2020 9:50:17 GMT
If you are about to retire and are saying the money might be needed to last 40 years (as you say), I would suggest you at least consider adding buying an annuity and add that to you list. W35 I'd like to see the government stepping in to boost annuity rates instead of, say, bolstering NS&I rates. I've not thought through the implications but hey, gotta make sense? Give me NS&I (and other investments) over an annuity any day. With the latter, you have to hand over your capital. Forever.
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