Premium Bonds.

Ros3 · 15th May 2016, 23:12

I have heard a lot about these lately and thought about buying some for the kids.. I thought about maybe £500 each for the both of them. Is it really worth it though ? and do the pro's outdo the con's ?. Should I buy them in 2 lots or pool them together ?. There's a lot of differing info online so wondered if anyone on here has them or experience of them ?. Thanks.

Mr Bone · 16th May 2016, 07:14

Grandad bought each of his grandchildren £50 of premium bonds. Mine are 56yrs old and have won nothing.

Couldn't sell them though.

topman · 16th May 2016, 07:23

Personally i wouldn't bother, too low a chance of winning.

First thing you need to think about is what do you want the money to do and over what period? Then work back from that.

rich17865 · 16th May 2016, 07:49

You have more chance of being kicked to death, by a donkey, on an aeroplane than winning the premium bonds.

You would be better off giving them the cash, or lottery tickets to the value of, but again, the national lottery is now just a tax on the poor as the odds of winning are almost as bad as the premium bonds.

FLYING BANANA · 16th May 2016, 08:04

Just had my 2nd win this year on the Premium Bonds and I do not have the max holdings.
Whatever you invest the money in it can be a game of chance.
Depending on how long you want to wait for a pay out. Then National Saving Bonds are a good investment. Or Bond that your bank can advise on.

Or there is the National Lottery, football pools and so on.

The beauty of Premium Bonds is if you invest £500 and don't win anything then you can cash in with no penalties.

lady zed · 16th May 2016, 08:18

there are lots of low value prizes that actually give you a good chance of getting a return on your money, plus as banana says, your money is completely safe (unlike the lottery where you'd be as well thwoing it in the river).

And as the interest rate is pathetic (which is good for borrowers), you're not going to see much in the way of growth in any kind of savings account so you may as well take your chances with premium bonds. I def would!

Lancpudn · 16th May 2016, 08:24

I got some premium bonds bought for me in the 1950's....never won a damn penny yet.

planenut · 16th May 2016, 09:27

The Premium Bond investment will not go down, plus there is a chance, and I doubt it has anything to do with donkeys, one may win. When it comes to the intended recipient withdrawing their cash, they can, then they can do what they like with it.

Darcydog · 16th May 2016, 09:51

Quote:

Originally Posted by FLYING BANANA

The beauty of Premium Bonds is if you invest £500 and don't win anything then you can cash in with no penalties.

And that is the crunch point. The odds may be worse for winning the jackpot than winning the lottery - but with the Lottery you loose your stake.

With Premium Bonds the money is like it being in an ordinary current account - no interest paid. But what Bank offers a current account with the prospect of a reasonable "win" from time to time?

IMO - as a part of an overall sensible investment strategy - Premium Bonds make a lot of sense as a place to keep a Cash Reserve - i.e that bit of money you keep back for emergencies. We used to do this via a Nationwide account but now Interest Rates are so low it seems hardly worth it.

The average return via winnings with Premium Bonds is likely to be about the same as any interest bearing account. But you have the Chance of winning a biggy

bobthebuilder · 16th May 2016, 09:58

Quote:

Originally Posted by Darcydog

And that is the crunch point. The odds may be worse for winning the jackpot than winning the lottery - but with the Lottery you loose your stake.

With Premium Bonds the money is like it being in an ordinary current account - no interest paid. But what Bank offers a current account with the prospect of a reasonable "win" from time to time?

IMO - as a part of an overall sensible investment strategy - Premium Bonds make a lot of sense as a place to keep a Cash Reserve - i.e that bit of money you keep back for emergencies. We used to do this via a Nationwide account but now Interest Rates are so low it seems hardly worth it.

The average return via winnings with Premium Bonds is likely to be about the same as any interest bearing account. But you have the Chance of winning a biggy

Apart from the small matter that its possible to get good interest rates from a few current accounts, e.g. Santander 1-2-3.

For a more informed analysis, I would recommend reading what Martin Lewis has to say.

15th May 2016, 23:12	#1
Ros3 This is my second home Rover 75 V6 saloon (gone to the Rover garage in the sky), Mazda mx5 Phoenix. Join Date: Feb 2011 Location: Cumnock Posts: 3,214 Thanks: 347 Thanked 157 Times in 92 Posts	Premium Bonds. I have heard a lot about these lately and thought about buying some for the kids.. I thought about maybe £500 each for the both of them. Is it really worth it though ? and do the pro's outdo the con's ?. Should I buy them in 2 lots or pool them together ?. There's a lot of differing info online so wondered if anyone on here has them or experience of them ?. Thanks.

16th May 2016, 07:14	#2
Mr Bone Gets stuck in 75 Cdt. VW Touareg V6 Tdi. Galaxy 1.9Tdi (x2). R1200GS Join Date: Sep 2012 Location: Planet Zog Posts: 742 Thanks: 169 Thanked 206 Times in 145 Posts	Grandad bought each of his grandchildren £50 of premium bonds. Mine are 56yrs old and have won nothing. Couldn't sell them though. __________________ If the world was run by decent honest leaders, we'd have a decent & honest place to live in.

16th May 2016, 07:23	#3
topman This is my second home MG ZT-T 190 Join Date: Jun 2009 Location: Lincolnshire Posts: 5,493 Thanks: 372 Thanked 647 Times in 534 Posts	Personally i wouldn't bother, too low a chance of winning. First thing you need to think about is what do you want the money to do and over what period? Then work back from that. __________________ Like being creative? http://www.qwghlm.co.uk/toys/dailymail/

16th May 2016, 08:04	#5
FLYING BANANA Moderator/Club Shop MG ZT 1.8t+. No.3 of 4 in Sunspot Yellow & Ford Fiesta in Black. Join Date: Aug 2010 Location: Rattler Farm Posts: 22,553 Thanks: 9,270 Thanked 15,645 Times in 6,806 Posts	Just had my 2nd win this year on the Premium Bonds and I do not have the max holdings. Whatever you invest the money in it can be a game of chance. Depending on how long you want to wait for a pay out. Then National Saving Bonds are a good investment. Or Bond that your bank can advise on. Or there is the National Lottery, football pools and so on. The beauty of Premium Bonds is if you invest £500 and don't win anything then you can cash in with no penalties. __________________ 233,250. onen hag oll

16th May 2016, 08:18	#6
lady zed This is my second home Rover 75 Saloon Join Date: Nov 2006 Location: On the edge Posts: 6,659 Thanks: 1,354 Thanked 1,210 Times in 716 Posts	there are lots of low value prizes that actually give you a good chance of getting a return on your money, plus as banana says, your money is completely safe (unlike the lottery where you'd be as well thwoing it in the river). And as the interest rate is pathetic (which is good for borrowers), you're not going to see much in the way of growth in any kind of savings account so you may as well take your chances with premium bonds. I def would! __________________ it's all about the first person you want to tell good news to

16th May 2016, 07:49	#4
rich17865 This is my second home Transit Connect Join Date: Feb 2011 Location: Crewe Posts: 9,532 Thanks: 868 Thanked 1,619 Times in 1,095 Posts	You have more chance of being kicked to death, by a donkey, on an aeroplane than winning the premium bonds. You would be better off giving them the cash, or lottery tickets to the value of, but again, the national lottery is now just a tax on the poor as the odds of winning are almost as bad as the premium bonds.

16th May 2016, 08:24	#7
Lancpudn This is my second home MG ZS EV Join Date: Oct 2015 Location: Lancashire Posts: 15,557 Thanks: 4,591 Thanked 3,427 Times in 2,565 Posts	I got some premium bonds bought for me in the 1950's....never won a damn penny yet. __________________ Blessed are the tea makers. http://www.dailymotion.com/video/x3b...auto-2000_auto

16th May 2016, 09:27	#8
planenut Regional Secretary Rover 1.8T Tourer Join Date: May 2007 Location: Heathrow Posts: 6,948 Thanks: 1,551 Thanked 2,036 Times in 1,264 Posts	The Premium Bond investment will not go down, plus there is a chance, and I doubt it has anything to do with donkeys, one may win. When it comes to the intended recipient withdrawing their cash, they can, then they can do what they like with it.

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