premuim bonds , does anyone do it?

There are better things to invest money in, however it is better than having the cash in a current account doing nothing.

Some people say it's better to put the money into a savings account, and spending some of your interest on lottery tickets :P
 
Eulogy said:
There are better things to invest money in, however it is better than having the cash in a current account doing nothing.
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This would depend on which current account but even if it was one that paid no interest you get benefits such as instant access to the money which you don't get with premium bonds and given the high chance of getting nothing its fairly easy to argue that they are not even tangiably better than zero interest accounts!
 
[TW]Fox;23845623 said:
No, they don't. Seriously its this sort of story that cons people into thinking premium bonds are good idea. They are not. Don't waste your time with premium bonds.

The average return is appalling - not only is it appalling but it's also misleading because it's skewed upwards by the handful of people who scoop the jackpot. You'll realise about 1% back from premium bonds. They are not worth it and you don't 'win' anything.

There is NO reason to chose premium bonds over other, better savings and investment products.
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Mother has about 8k in them, her return over her period (about 5years now) has been 4-5%pa. So, you may not have seen anything, but you aren't always right.
 
The day I was born someone bought me £100 of premium bonds, 25.5 years later I still have £100 premium bonds... Apparently the other choice was going to be £100 in Microsoft but they decided on the safer option they still won't tell me if that's a wind up.
 
MeEsH BaKkA said:
The day I was born someone bought me £100 of premium bonds, 25.5 years later I still have £100 premium bonds...
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Likewise, I had a £10 worth of premium bonds bought for me 50 years ago. Never had a penny. Did get close one month, bloke next door won £25..;):):)
 
[FnG]magnolia;23845654 said:
Yeah but my mate Dave - well, he's not my mate but a friend of a friend, sort of, I don't even know him - anyway, this guy won a million pounds!! I should probably put my 10 000 pounds into them because it's a sure thing.

What do you say to that, Mr Fancy Pants Fox?
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That needs to be read in a Vicky Pollard voice for added effect.

On topic I would say the LloydsTSB classic account with vantage is still worth doing. OP has 10 grand spare, two accounts with 5 grand in each will give him 3%. even though it's taxable it's still better option than the chance of 2% tax free.
 
randomshenans said:
Mother has about 8k in them, her return over her period (about 5years now) has been 4-5%pa. So, you may not have seen anything, but you aren't always right.
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It amazes me how many people in this thread appear to have had luck which defies the statistics. What very lucky people you all know!

Always anecdotal though, isn't it? Always 'my friend' or 'someone I know' or 'someone in my family'. Which in itself is odd, do you guys really discuss your detailed financial affairs right down to the exact levels of return and how much you have with mates etc? Because thats the only way you could verify the claims...
 
[TW]Fox;23846579 said:
The rest of his investments must seriously suck.
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Or he has just been lucky. He has been trading from home for the last 20 years, originally on teletext and a phone line to his broker, so he is very experienced.
 
My mother has about £7k in them and generally wins £25 about every 2-3 months and reinvests the winnings. I've told her to shift them elsewhere before but won't listen.

I had £100 bought for me when I was born. It took 13 years to win anything but I got a £100 win and cashed them in.
 
PapaLazaru said:
Or he has just been lucky. He has been trading from home for the last 20 years, originally on teletext and a phone line to his broker, so he is very experienced.
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Forgive me if I find the concept of an experienced investor swearing by Premium Bonds slightly far fetched.
 
[TW]Fox;23849101 said:
Forgive me if I find the concept of an experienced investor swearing by Premium Bonds slightly far fetched.
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I think he is confusing "how long he has been investing" with "skill".
 
I don't own any myself, however i do know several people that swear that they're a wise investment and put all their savings in them. There's no talking any sense/logic into them, i think it's the lottery/winning aspect that attracts people.
 
MeEsH BaKkA said:
The day I was born someone bought me £100 of premium bonds, 25.5 years later I still have £100 premium bonds... Apparently the other choice was going to be £100 in Microsoft but they decided on the safer option they still won't tell me if that's a wind up.
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Even at today's share price that's approx. £25k you've missed. :)

Obviously share dealing isn't that simple and fear would have bitten when you doubled your £100.
 
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We used to have a little syndicate at work where we put some in each week with a view to having a Blow-out night come Xmas. So we bought premium bonds with pot of money each month. In the first 18months or so we did really well, had a £250, and a couple of £50's. Then it just fizzled out. We just took the view if we won great, if we didn't at least we knew where the pot was being kept.
 
[TW]Fox;23849101 said:
Forgive me if I find the concept of an experienced investor swearing by Premium Bonds slightly far fetched.
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What is your issue with them? As long as people know that, in all likelyhood, their returns will be worse than an Cash ISA or Instant access saving account, I don't see the harm.

Personally, I have done very well out of them, although I have only taken part in 4 or 5 draws, I have done better than my odds would suggest, scooping around 2.8%. Which risk & tax free, is pretty good I feel.

I do not see it as a long term thing. Meerly a place to dump cash while we wait for the house to sell.

http://www.moneysavingexpert.com/savings/premium-bonds-calculator/
 
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