Premium bonds? Worth it?

helpimcrap · 29 Jun 2018 at 12:48

Hi all,
I keep money aside for a rainy day etc and it earns naff all interest.

My mate puts £500 into premium bonds because he might win something and savings earn him nothing anyway.

I could do the same no problem. I already do the post code lottery and win most months to cover the cost but it's a bit meh.

Anyone with any experience of this and advise please?

I understand the only way to lose is by the inflation and value of the pound etc?

VincentHanna · 29 Jun 2018 at 12:51

No

/Thread.

[FnG]magnolia · 29 Jun 2018 at 12:54

It's a terrible idea unless you want to have less money than you could have had.

Diddums · 29 Jun 2018 at 12:54

VincentHanna said:
No

/Thread.

This.

XeNoN89 · 29 Jun 2018 at 12:56

I had about £600 in there from when I was a kid and took it out last year as I never won anything. I put it into crypto which was over 3k in December before the crash, still well over 1k now though

Jokester · 29 Jun 2018 at 12:57

Yes.

Wait. I’ve got that wrong, just no.

Columbo · 29 Jun 2018 at 13:03

Nope, my Gran bought me £2k worth when I was 18 (now 41)....it's still worth 2k and I've won nothing.
So it's worth less in real terms than it was 23 years ago.

Blackjack Davy · 29 Jun 2018 at 13:05

lol. When I was born my father put money into premium bonds. Its still there for all I know and has certainly never won a penny.

dl8860 · 29 Jun 2018 at 13:24

Columbo said:
Nope, my Gran bought me £2k worth when I was 18 (now 41)....it's still worth 2k and I've won nothing.
So it's worth less in real terms than it was 23 years ago.

Wow, I guess you've been unlucky to win nothing in that time, but that is a really awful way to 'invest' 2k if there is a chance for it to do that badly in real terms. If that had been put in an equity tracker fund, you'd be looking at tripling your money, maybe more.

Columbo · 29 Jun 2018 at 13:28

dl8860 said:
Wow, I guess you've been unlucky to win nothing in that time, but that is a really awful way to 'invest' 2k if there is a chance for it to do that badly in real terms. If that had been put in an equity tracker fund, you'd be looking at tripling your money, maybe more.

Yep indeed but it's kinda hard to tell that to your Gran when she hands you the certificate for your birthday!
I've never really had the heart to take it out but have thought about it recently to just take it out give to my daughter or put it into her trust fund or similar.

kinetic747 · 29 Jun 2018 at 14:25

I've got £8500 worth that I bought temporarily about 8 months ago. I've won £150 so far, all of them wins of £25. Guess I'm pretty lucky but the amounts are quite small. It's not a bad place to invest whilst you decide what you really want to do with the money but I still haven't decided.

kinetic747 · 29 Jun 2018 at 14:27

Columbo said:
Nope, my Gran bought me £2k worth when I was 18 (now 41)....it's still worth 2k and I've won nothing.
So it's worth less in real terms than it was 23 years ago.

Are you sure you haven't won anything? That's awfully bad luck not to win anything at all.

Randomface74 · 29 Jun 2018 at 14:30

Cash ISA is a reasonable place for your emergency fund.
https://www.moneysavingexpert.com/savings/best-cash-isa/

Maccy · 29 Jun 2018 at 14:54

Columbo said:
Nope, my Gran bought me £2k worth when I was 18 (now 41)....it's still worth 2k and I've won nothing.
So it's worth less in real terms than it was 23 years ago.

Just done a quick calculation, if you use 2% as an average inflation figure over the last 23 years, you've technically lost around £750! :eek:

Columbo · 29 Jun 2018 at 14:57

Maccy said:
Just done a quick calculation, if you use 2% as an average inflation figure over the last 23 years, you've technically lost around £750!

Never calculated it before but that sounds about right!
I'd have been offer off buying a Rolex with it and leaving it in the box!

Nasher · 29 Jun 2018 at 15:23

It used to be. I was at the cap and used to win £25-70 every month, sometimes more. Won £500 once.

But since they up it to (£50k I think?) and lowered the odds it's not really worth it. You'll probably make more on P2P loans now.

413x · 29 Jun 2018 at 15:31

Premium bonds is just gambling with the interet

Could just put it in a low interest isa and put yearly interest on the lottery.

rodders · 29 Jun 2018 at 15:31

I win some on mine, at least it's not risky like an investiment. I can't afford to risk all my money. I risk just a little bit of it.

dl8860 · 29 Jun 2018 at 15:46

kinetic747 said:
Are you sure you haven't won anything? That's awfully bad luck not to win anything at all.

I've no idea what the odds are, but for Columbo to have won nothing in 23 years with £2k (in 19xx money) and you to have won 5 separate times in 8 months with £8k (in 2018 money), something definitely sounds amiss.

XeNoN89 · 29 Jun 2018 at 15:54

dl8860 said:
I've no idea what the odds are, but for Columbo to have won nothing in 23 years with £2k (in 19xx money) and you to have won 5 separate times in 8 months with £8k (in 2018 money), something definitely sounds amiss.

I won about 3 times in 26 years with £600, couple of £50's and a £25