premuim bonds , does anyone do it?

TheDean said:
I am a familiar investor, and I use them to park cash. I don't see the harm, personally. Bit of fun, as long as you are fully aware of the return, or lack of, that they are accompanied by
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this is a fair comment - IF you've maxed your ISA limit for the year then you'll get a similar (expected) return from premium bonds as you would from savings + tax... realistically you've got a high chance of getting a lower return still and a very very small chance of getting a ridiculously massive return.

(assuming you're a 40% tax payer - which is fairly likely if you're saving over 10k a year.)
 
[TW]Fox;23851938 said:
Santander 123 current account. 3% AER on balances of between £3k and £20k.
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Fair enough, I'd discounted a few like that when I flicked through before due to the number of restrictions, etc. without really thinking about it.
 
I have some for about 40 years, had a few some wins many years ago.
Been thinking about cashing them in & buying some newer ones, as mine date from the late 60's, early 70's, might have more luck with newer numbers.
 
Nightglow said:
I have some for about 40 years, had a few some wins many years ago.
Been thinking about cashing them in & buying some newer ones, as mine date from the late 60's, early 70's, might have more luck with newer numbers.
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Not sure if serious.
 
So over 40 years you've won 300 quid and you think choosing 'newer bonds' will make all the difference?

I have some questions:

1. Have you read this thread?
2. Have you understood this thread when posters have been clear on the one instance where premium bonds might actually make sense?
3. Do you believe that you will get a better return on premium bonds than other forms of investment?
4. If you do not, do you care?

The only way I can see what you're proposing to do making any sense is if your answer to number 4 is no and you're doing it for ***** and giggles and don't care about return. Otherwise I don't know what to tell you.
 
[FnG]magnolia;23854279 said:
So over 40 years you've won 300 quid and you think choosing 'newer bonds' will make all the difference?.
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No,no,no, I have £300 worth of bonds, & in 40 years, I've only won about £75.
So, i'm thinking cash in & get some newer numbers.

Yet, I know peeps who have won three or four times in a year, but my sister has about £100 of bonds for nearly 30 years & she has never won anything.

Sticking £300 in a bank, is pointless with present interest rates.
 
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But over 40 years you have won almost nothing. Your friends have won slightly more than nothing but you have a lot of experience in winning nothing.

And you're going to 'invest' in more? How does this make sense to you?
 
But you over 40 years have not!

Why is it always a 'friend' and never the investor who seems to be doing well whenever premium bonds are talked about?

Anyway, I'm out, I've said my piece. I hope you win something :)
 
Nightglow said:
Reinvest, might have more luck with a batch of newer numbers.

One friend has won a lot more.
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What? Why would you have more luck with newer numbers? Do you understand how probabilities work?

You have 40 years experience of how shockingly poor a product they are and think the answer to this is... Reinvest in the same product?

Words fail me.
 
Thank god for premium bonds. We all know the government desperately needs money and there's no cheaper borrowing than that from people who don't mind real negative interest rates!

OP, if you're still on the fence with 'investing' in premium bonds, I advise spending the funds in a casino instead. It's more fun.
 
[TW]Fox;23851059 said:
Why? They are a nuisance for 'parking cash' as they are not easy-instant-access.

'Park' your cash in any of the myriad of better places where you can then immediatly 'unpark' it if you need it. If you don't need it, invest it rather than 'park' it.
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They are not a nuisance at all. I am not going to go into details about my financial affairs, but there is no better place for me to park it currently than good old premium bonds :)
 
TheDean said:
They are not a nuisance at all. I am not going to go into details about my financial affairs, but there is no better place for me to park it currently than good old premium bonds :)
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So a higher rate of return in an account that has better access terms would be a worse place?
 
Basher said:
So a higher rate of return in an account that has better access terms would be a worse place?
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For a gambler like me, with my current situation...probably. Nobody likes boring old interest - everyone loves a flutter. As discussed, my ROI thus far has beaten all instant access savings acount so far.
 
TheDean said:
For a gambler like me, with my current situation...probably. Nobody likes boring old interest - everyone loves a flutter. As discussed, my ROI thus far has beaten all instant access savings acount so far.
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Why not just stick it all on red? That seems even less boring.
 
Ah yes the joy of a flutter on the premium bonds. It's so exciting. Interest is boring but randomly distributed interest (which is what it is) is so thrilling, its clearly just like lottery tickets and casinos.
 
Terrible concept with a terrible rate of return.

But it seems anecdotal story's of statistical outliers (who win often) blind people to the actual odds & how poor of an investment it is.

Yes, some people will make a good return - but on average - you won't.

You only invest this if you don't care about the return/potential loss due to inflation - it's not an investment opportunity, it's just glorified gambling.
 
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