UKC

ok mate has got 20k .put it in the bank and the best you cd get is 3% .was wondering if you bought 20k of premium bonds wot is the likely return (presuming you win of course)..would it be better than putting it in the bank ...anybody here got some premium bonds and doing ok?

In reply to colina:
The capital is very safe, because the government isn't going to run out on it's debts.
The average is 1.35%. Most people get less than this, a handful get much, much more. This is the real reason to have them I think - the small chance of winning big. And unlike the lottery, you get the money back afterwards (less inflation) even if you don't win.

In reply to colina:

Some good analysis on here:

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

Basically your money is very safe but the yield is pretty low.

In reply to colina:

My wife and I bought 60k of premium bonds in January 2014. Its yielded £575 in the 12 months. Every month i get a cheque or two and the excitement of it being the big one, but its always £25, for which I'm always disappointed but also pleased. That's 1% but its tax free of course and a big win would change the investment entirely.

In reply to colina:

I had £1000 for about 3 years, I got 3 £50 and 1 £500. Its a gamble, but you are only gambling the interest. I reckon its worth a punt and it's more fun than normal banking.

In reply to colina:

my issue with PB's is that there are either loads of small wins - 25£ - and a few really big ones, with the chances of winning these being very low.
I would be more inclined to have a punt if there were a number of prizes in the 50-100 grand mark.

However, i guess they think that people are drawn by the possibility of winning the big one.
Shame really as i suspect that 100 grand would actually make you happier than 100 million

In reply to Kimono:





I agree and feel similarly about the national lottery.

In reply to colina:

If you have more than £10k you should start to see a reliable return tending to the average. Given their tax free nature that is better than current instant access accounts and short term fixed term bonds offered by high street banks.

If you only have a bit in there, the statisitical variation on your returns is bigger, and the most likely outcome is that you see no return. But then you're barely loosing any interest on that money compared to other accounts given the low quantity involved and the low rates elsewhere.

I've got a low amount in - less than £1k. One year I saw a 50% return and for 15 I've seen 0%...

In reply to Kimono:


Top prize is £1 million, isn't it? That would definitely make me happier than £100,000, though either would be very nice indeed!

I keep £1000-2000 in premium bonds as a holiday fund. I was very lucky and won £500 the first month I bought any (£200), many years ago; since then I think I've won £100 and £50. I rarely win anything, of course.

It's fairly harmless fun, low risk, and easy enough to access your savings, so it's not a bad way of saving a small amount.

In reply to colina:

Another £50 today.

In reply to colina:

Stick this year's allowance in an ISA and on 7th April put next year's allowance in an ISA. Pay off all debts, pay big sums cash rather than direct debit etc (e.g. car insurance £500 is £550 by DD, earn £50 by paying it direct). Loads of ideas on martins money tips.

In reply to skog:


So you and most people think.
The research on lottery winners tells a very different story