Given that my bank is was only offering 0.01 % interest I took out £15k and bought Premium Bonds ....what are my chances of winning anything....anybody won with a similar stake?....
- posted
3 years ago
OT Premium bonds
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- posted
3 years ago
Jim GM4DHJ ... brought next idea :
Nil to 0.01% chance of covering your loss of interest.
Better to find a UK guaranteed bank, offering better interest. Take a look at Marcus (Goldman Sachs)- interest is 0.7%, but soon to change to
0.5%, better than 0.01% or keeping it under the mattress and you have free access to it.- Vote on answer
- posted
3 years ago
If you have average luck you can expect to win £100 in one year - chance of 77.4%.
You have 1 in 300 chance of winning £1000.
At 0.6% in a Cash ISA you'd get £450 assuming compounded interest and basic rate taxpayer.
(Moneysavingexpert Premium Bonds calculator)
For comparison on the UK National Lottery, the odds of winning the jackpot are 1 in 45,057,474. The overall odds of winning a prize are 1 in 9.3.
Owain
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- posted
3 years ago
Why have the odds diminished, it was ~8,000,000:1 when it first started.
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- posted
3 years ago
On £12k my return this year has been 2.2% for PBonds. Wife had .7% for similar amount.
Last year was better but I believe they have reduced the payments since.
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3 years ago
Lower interest rates and more subscribers?
For the OP, I have a few more PBs than you, and in the last twelve months the return has been exactly 1%, tax free of course, and all in £25 prizes. No one seriously invests in PBs to get rich, but at least the capital remains the same even if inflation does erode its value, unlike shocks and stares that have lost value significantly in the last twelve months.
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3 years ago
That can't be right.
1% of £15k is only £150.- Vote on answer
- posted
3 years ago
You're right. The figures on MSE were wrong, but are now right?
Anyway, Premium Bonds are skewed because even with 'average luck' they don't pay out small prizes.
Owain
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- posted
3 years ago
Just did much the same, had a £50 win in my first month with a £10k stake so I am not complaining.
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- posted
3 years ago
Until this month, the average rate of return on premium bonds was 1.4% (now down to 1%). Over several years, with 30k in PB, my returns have been fairly close to the average.
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- posted
3 years ago
Someone posted some PB prize figures over the weekend for the last few years. Holdings are all larger sizes. Return seems to be about 1.3% over a reasonable sample. Bear in mind that NS&I keep decreasing the prize rate. Also bear in mind that it's a prize rate, not an interest rate. Figures are here:
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3 years ago
With stocks and shares is it now time to take the gamble to buy in the hope that Covid 19 vaccine optimism with result in share prices increasing? Or maybe the bubble was already set to burst before Covid 19 and post Covid 19 a realisation that many businesses may either not be financially viable (at least for a few years) or will go to the wall when Government Covid subsidies cease.
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3 years ago
+1 Some years lower than their prize fund interest rate and some years more but on average very close. One month this year I had 7 off £25 wins but nothing in the next months.
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- posted
3 years ago
better taking a gamble I think with free access with premium bonds ....funny wife is getting bout £189 a year in Nationwide ISA for only 10 grand more...
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- posted
3 years ago
good odds then...
stuff the national lottery
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3 years ago
coz they are rip off bastards
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3 years ago
yes I don't trust gambling on a crap economy
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3 years ago
better than nothing...I would be happy with that
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- posted
3 years ago
pain in the arse when you had no money mortgage rates were 15% and when you have a few bob and no mortgage you get sod all......you will soon be charged negative rates to bank.....gamble with no risk is the only way now I think.....
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- posted
3 years ago
For me, premium bonds are a way of "playing the lottery" i.e. a negligible but above zero chance of winning a sum of money that would allow me to retire. The difference being that with PBs I get to keep my stake.
The small PB winnings make it as attractive as keeping in a savings account.
To really make some £ on savings accounts you need to be willing to switch them often, which I am not, because the headline rate is usually for a year.