Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to monabri,Dod101,Anonymous,Gersemi,robbelg, for Donating to support the site

Premium Bonds

Halicarnassus
Lemon Slice
Posts: 343
Joined: February 22nd, 2017, 1:23 am
Been thanked: 3 times

Premium Bonds

#43481

Postby Halicarnassus » April 4th, 2017, 10:46 am

I am holding premium bonds and I hesitate to call them an investment as my return is only around 1% pa in prizes. I inherited a small amount of money and in lieu of knowing what to do with it (some will be spent) just parked it in NSI. A major reason for not taking the money out of them is the fall in GBP against AUD. I'm unwilling to exchange into AUD at these rates.

Anyone else use premium bonds?

77ss
Lemon Slice
Posts: 803
Joined: November 4th, 2016, 10:42 am
Has thanked: 57 times
Been thanked: 135 times

Re: Premium Bonds

#43487

Postby 77ss » April 4th, 2017, 10:59 am

Halicarnassus wrote:I am holding premium bonds and I hesitate to call them an investment as my return is only around 1% pa in prizes. I inherited a small amount of money and in lieu of knowing what to do with it (some will be spent) just parked it in NSI. A major reason for not taking the money out of them is the fall in GBP against AUD. I'm unwilling to exchange into AUD at these rates.

Anyone else use premium bonds?


Yes, on and off.

A sensible temporary home for cash, while deciding what to do with it, in my view.

Halicarnassus
Lemon Slice
Posts: 343
Joined: February 22nd, 2017, 1:23 am
Been thanked: 3 times

Re: Premium Bonds

#43490

Postby Halicarnassus » April 4th, 2017, 11:01 am

I have noticed that they raised the holding ceiling in the last few years (I'm no where near it!) making the chance of returns for the small guy more unlikely :shock:

AleisterCrowley
Lemon Quarter
Posts: 3454
Joined: November 4th, 2016, 11:35 am
Has thanked: 707 times
Been thanked: 763 times

Re: Premium Bonds

#43509

Postby AleisterCrowley » April 4th, 2017, 11:56 am

i don't think the max investment level makes any difference to the chances of an individual bond winning.
they have reduced the payout though
http://www.moneysavingexpert.com/savings/premium-bonds

chas49
Lemon Slice
Posts: 967
Joined: November 4th, 2016, 10:25 am
Has thanked: 74 times
Been thanked: 131 times

Re: Premium Bonds

#43553

Postby chas49 » April 4th, 2017, 2:31 pm

AleisterCrowley wrote:i don't think the max investment level makes any difference to the chances of an individual bond winning.
they have reduced the payout though
http://www.moneysavingexpert.com/savings/premium-bonds


Depends on how they "pick"

If it's randomly selected from the bonds in play, the more there are, the less chance you have. I think.

It's not like the Lottery

Moderator Message:
Moving as the "bonds" in this board are not the type in the topic "Premium Bonds". Moved from "gilts & bonds". Raptor.

kiloran
Lemon Quarter
Posts: 1983
Joined: November 4th, 2016, 9:24 am
Has thanked: 585 times
Been thanked: 895 times

Re: Premium Bonds

#43560

Postby kiloran » April 4th, 2017, 2:57 pm

Halicarnassus wrote:Anyone else use premium bonds?

Yes. My parents bought 2 for me in 1956. Never won anything, neither has my sister who was also bought 2.

Lousy investment ;)

--kiloran

swill453
Lemon Quarter
Posts: 2360
Joined: November 4th, 2016, 6:11 pm
Has thanked: 151 times
Been thanked: 648 times

Re: Premium Bonds

#43600

Postby swill453 » April 4th, 2017, 4:45 pm

kiloran wrote:My parents bought 2 for me in 1956. Never won anything, neither has my sister who was also bought 2.

That's about right. Extrapolating from http://www.moneysavingexpert.com/saving ... alculator/ only about 1 in 8 people who held 2 bonds for 60 years would have won anything at all.

(The odds have probably changed over the years, but the implication won't be far off.)

Scott.

Geebert
Posts: 8
Joined: November 6th, 2016, 12:18 am
Has thanked: 7 times
Been thanked: 3 times

Re: Premium Bonds

#43619

Postby Geebert » April 4th, 2017, 5:47 pm

I hold some Premium Bonds. I've never been that excited by the prizes I get but I suppose it pays better than some other bank accounts I have so I should worry about sorting them out first. I normally get a prize or two each month.

Also, it would be nice if they just said how much I'd won in the email they sent rather than telling me I'm a winner and getting my hopes up.

Redmires
2 Lemon pips
Posts: 184
Joined: November 4th, 2016, 6:49 pm
Has thanked: 26 times
Been thanked: 70 times

Re: Premium Bonds

#43643

Postby Redmires » April 4th, 2017, 7:30 pm

A firm believer in PB here and also NS income bonds. I manage to return as much if not more than a ISA cash account but a major factor is the 100% guarantee of capital. If the government doesn't go bankrupt, that is.

A few years ago there was a lottery syndicate going in the office but after winning zilch for quite some time, I started up a PB syndicate to replace it. After about 10 years we had about £30k in it. Would we have won £30k in the lottery in that time ? Very unlikely.

SteelCamel
Posts: 32
Joined: February 15th, 2017, 5:49 pm
Been thanked: 11 times

Re: Premium Bonds

#43653

Postby SteelCamel » April 4th, 2017, 8:20 pm

The chances of winning a prize don't depend how many bonds are in play - the odds are fixed, each bond currently has a 30,000 to 1 chance of winning a prize. However there's only one million-pound prize, so the chances of winning that do depend on the number of bonds in play.

PinkDalek
Lemon Quarter
Posts: 4201
Joined: November 4th, 2016, 1:12 pm
Has thanked: 982 times
Been thanked: 1123 times

Re: Premium Bonds

#43659

Postby PinkDalek » April 4th, 2017, 8:49 pm

Geebert wrote:Also, it would be nice if they just said how much I'd won in the email they sent rather than telling me I'm a winner and getting my hopes up.


I've yet to get my advisory email for April 2017 but I can already see I have won via:

https://www.nsandi.com/prize-checker

You'll need Your holder’s number.

ReformedCharacter
Lemon Slice
Posts: 957
Joined: November 4th, 2016, 11:12 am
Has thanked: 462 times
Been thanked: 236 times

Re: Premium Bonds

#43673

Postby ReformedCharacter » April 4th, 2017, 10:22 pm

SteelCamel wrote:The chances of winning a prize don't depend how many bonds are in play - the odds are fixed, each bond currently has a 30,000 to 1 chance of winning a prize. However there's only one million-pound prize, so the chances of winning that do depend on the number of bonds in play.


I'm not sure you have the facts right and there are certainly two prizes of a million pounds each month.

RC

chas49
Lemon Slice
Posts: 967
Joined: November 4th, 2016, 10:25 am
Has thanked: 74 times
Been thanked: 131 times

Re: Premium Bonds

#43681

Postby chas49 » April 4th, 2017, 10:45 pm

ReformedCharacter wrote:
SteelCamel wrote:The chances of winning a prize don't depend how many bonds are in play - the odds are fixed, each bond currently has a 30,000 to 1 chance of winning a prize. However there's only one million-pound prize, so the chances of winning that do depend on the number of bonds in play.


I'm not sure you have the facts right and there are certainly two prizes of a million pounds each month.

RC


Quotes from NS&I leaflet:

How are winners chosen?
Once ERNIE has generated the random numbers, we match them in order against eligible Bond numbers to determine the lucky winners. So, each £1 Bond number has exactly the same chance of winning, no matter when or where you bought your Bonds


Why do old Bond numbers never win?
They do win. But there are so many more new Bond numbers in the draw that it’s less likely.


Not sure those two are consistent.

swill453
Lemon Quarter
Posts: 2360
Joined: November 4th, 2016, 6:11 pm
Has thanked: 151 times
Been thanked: 648 times

Re: Premium Bonds

#43685

Postby swill453 » April 4th, 2017, 11:14 pm

chas49 wrote:Not sure those two are consistent.

But they are.

Let's say (figures plucked from the air) that there are 1 million "old" numbers and 100 million "new" numbers.

Each individual bond number has exactly the same chance of winning. But it's much more likely that the winner will be a "new" number.

Scott.

Halicarnassus
Lemon Slice
Posts: 343
Joined: February 22nd, 2017, 1:23 am
Been thanked: 3 times

Re: Premium Bonds

#43692

Postby Halicarnassus » April 4th, 2017, 11:59 pm

ReformedCharacter wrote:
SteelCamel wrote:The chances of winning a prize don't depend how many bonds are in play - the odds are fixed, each bond currently has a 30,000 to 1 chance of winning a prize. However there's only one million-pound prize, so the chances of winning that do depend on the number of bonds in play.


I'm not sure you have the facts right and there are certainly two prizes of a million pounds each month.

RC


Yes this was changed some time back from one 1 million pound prize to two prizes of 1 million in the same month.

As others have said, I do like the capital guarantee and the chance, even though that may be ever so slight, of winning a substantial cash sum. This is regulated by my understanding that the bonds are held at that level of capital only for the shorter term, as the money will soon be allocated elsewhere.

I do think though that when I am older I might use the premium bonds as an element of balance in my portfolio: as the cash element. You can basically get your money electronically transferred into your current account in a couple of days, so it's accessible enough to be called that.

baldchap
2 Lemon pips
Posts: 124
Joined: February 5th, 2017, 11:06 am
Has thanked: 36 times
Been thanked: 28 times

Re: Premium Bonds

#43736

Postby baldchap » April 5th, 2017, 10:23 am

I seem to be in the minority here, not having held any since the days when the limit was about £23000, and there were still reasonable odds of a regular £50 win.

IMO they are currently a very poor place to keep funds.
Do holders think that sentimentality is playing a part?

swill453
Lemon Quarter
Posts: 2360
Joined: November 4th, 2016, 6:11 pm
Has thanked: 151 times
Been thanked: 648 times

Re: Premium Bonds

#43739

Postby swill453 » April 5th, 2017, 10:32 am

baldchap wrote:I seem to be in the minority here, not having held any since the days when the limit was about £23000, and there were still reasonable odds of a regular £50 win.

IMO they are currently a very poor place to keep funds.
Do holders think that sentimentality is playing a part?

Well the average "interest rate" is still over 1% (it would be a bit less if you discount the possibility of winning £1million). That's certainly comparable with, if not more than, instant access savings accounts or cash ISAs.

Scott.

Halicarnassus
Lemon Slice
Posts: 343
Joined: February 22nd, 2017, 1:23 am
Been thanked: 3 times

Re: Premium Bonds

#43740

Postby Halicarnassus » April 5th, 2017, 10:36 am

Hi Baldchap
Definitely sentimentality. My Dad (God rest his soul) had a fair old whack of them and I figured that until I get round to using the money he left me, I'd keep it in the NSIPBs until I need it. I also want to wait until there is some weakening of AUD against the GBP before I send it all to the antipodes.

baldchap
2 Lemon pips
Posts: 124
Joined: February 5th, 2017, 11:06 am
Has thanked: 36 times
Been thanked: 28 times

Re: Premium Bonds

#43930

Postby baldchap » April 5th, 2017, 10:50 pm

Halicarnassus wrote:Hi Baldchap
Definitely sentimentality. My Dad (God rest his soul) had a fair old whack of them and I figured that until I get round to using the money he left me, I'd keep it in the NSIPBs until I need it. I also want to wait until there is some weakening of AUD against the GBP before I send it all to the antipodes.

Halicarnassus, I think it is one of these things in the national psyche :) We all trusted ERNIE, we grew up with him.
1% is just insulting though isn't it?

As Scott suggests, some may like it as an alternative to an instant access saver. But not for me.
No doubt one of you will win the million next month just to teach me a lesson!

Halicarnassus
Lemon Slice
Posts: 343
Joined: February 22nd, 2017, 1:23 am
Been thanked: 3 times

Re: Premium Bonds

#43932

Postby Halicarnassus » April 5th, 2017, 11:01 pm

baldchap wrote:
Halicarnassus wrote:Hi Baldchap
Definitely sentimentality. My Dad (God rest his soul) had a fair old whack of them and I figured that until I get round to using the money he left me, I'd keep it in the NSIPBs until I need it. I also want to wait until there is some weakening of AUD against the GBP before I send it all to the antipodes.

Halicarnassus, I think it is one of these things in the national psyche :) We all trusted ERNIE, we grew up with him.
1% is just insulting though isn't it?

As Scott suggests, some may like it as an alternative to an instant access saver. But not for me.
No doubt one of you will win the million next month just to teach me a lesson!


;) I'll buy you a pint if I do. Only £25 this month so a wee bit off the million! Yes the return is naff but I'm aware of that and it suits purposes at the moment. I would probably have cashed most of them in by now but with BREXIT and the pound slumping simultaneously against a strengthening AUD$ I reckoned that there was no hurry. I expect the pound to strengthen significantly against the aussie this year. Partly due to a weakening dollar here in Australia, but also because I think the pound will pull out of its slump.


Return to “Bank Accounts Savings & ISAs”

Who is online

Users browsing this forum: No registered users and 2 guests