Thoughts On Premium Bonds?

Morning gang

Just out of interest, what are your thoughts on Premium Bonds? :thinking:

Do you think they’re worth it? Have you ever won big?

I really like the prize checker app & the anticipation of revealing the results! (although I haven’t actually won anything in a few months haha)

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This podcast sums it up quite neatly.

The Money To The Masses Podcast: Ep 281 - Are premium bonds any good, stealth taxation & accessing emergency funds http://moneytothemasses.libsyn.com/ep-281-are-premium-bonds-any-good-stealth-taxation-accessing-emergency-funds

Edit: try this link instead

https://moneytothemasses.com/podcast

In short, only really worth it for higher rate payers who can put in 30k or more.

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Haha not me then :upside_down_face::upside_down_face::upside_down_face:

I’ve not actually listened to this podcast before - will definitely give it a listen!

(also got a 404 error from your link so here it is again for anyone else!)
https://moneytothemasses.com/podcast

Funny you ask this had the same conversation with a family member, so obsessed with the thought of winning but I don’t think people know how truly down to luck it is, baring in mind I’ve had this conversation every year for the past 3 years and shown them yesterday if they had of put the money in Marcus at the time which offered 1.5% they would of been £1800 better of in interest :weary: Also in my experience I’d say it’s more a generation thing :v:

2nd Draw, £75.
After moving money about to get the best interest, this is just there for the “What if”.

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See the detailed analysis from MSE as well…

They’re yet another sweet deal for the extremely wealthy and more or less missold to everyone else

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Oh amazing!!

And yeah I guess it’s just the idea that you could win £1M that draws in a lot of people? It’s also very easy/ doesn’t require much financial knowledge?

Looks like one of the winners from August had £6K invested and won a Mill!

These are the odds :nerd_face:

Oh wow

Pretty happy with the amount I’ve won so far then with those odds :joy::joy:

Wish I was that lucky :joy: roll on Gold!! Very close to $2000 an ounce :partying_face::partying_face::partying_face:

We’ll see how well I’ve done after 12 months. Not expecting to do better.

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I have premium bonds. Depends how lucky you are but I think I read the average interest rate works out as 1.4%. Which is more than a normal saving type account.

Obviously depends on luck and how many Premium Bonds you have. You can work out how lucky you are using the Premium Bonds Calculator on MoneySavingExpert web site.

Obviously you could be unlucky but there is the added excitement that you could when £1000s each month. Over last 12 months, I won £25 in May and £75 in April! (3 x £25)! Its a bit hard to calculate how lucky and equivalent interest rate because I have had different amount of bonds at different times. I think this year been more lucky over because I won nothing in 2019, and just once in 2018 and 2017 (£25 each)

Wow. I’d be happy with the £100,000 :wink:

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Interest rates are so shocking atm across the board so this is actually pretty good :joy:

But yeah, it’s all about the luck! I was thinking of taking my money out, but then I’m kept in by the idea that next month I could win loads haha

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The average makes them sound attractive, but the median definitely doesn’t!

True. But its the chance of winning that £1m!! :slight_smile:

For every £100 in premium bonds, you have a 1 in 37,838,284 chance of winning £1 million. Not exactly great…

I am well aware of the odds. Actually, I think odds even longer (or shorter - I don’t know gambling). If £1 bonds, odds are 1 in 45 billion so about 1 in 450 million if you have £100.

But you got to be in it to win it!!

Well, if they were advertised and regulated as gambling, that would be different!, but they’re sold as a bond with a putative interest rate, which is complete nonsense.

Clear Premium Bonds are not for you then! :slight_smile:

Maybe its a bit mis-leading having the 1.4% “interest rate” figure on their web site but it does say on the web site that it is not for savers who want regular income or are looking for guaranteed returns.

Also, according to Wikipedia, the term “premium bonds” has been around since 18th century to mean “a bond that earns no interest but is eligible for entry into a lottery”.