potsy
Rambler
- Location
- My Armchair
Don't blame you, I have done similar and enjoy the guaranteed returns of a decent savings account.
Will be keeping 5k in just in case, only needs that one number to come out!
Premium bonds - weird coincidence
- Thread starter PK99
- Start date
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Don't blame you, I have done similar and enjoy the guaranteed returns of a decent savings account.
Will be keeping 5k in just in case, only needs that one number to come out!
MontyVeda
a short-tempered ill-controlled small-minded troll
- Location
- Lancaster... the little city.
Look at buying PBs as an alternative to buying national lottery tickets... the only difference is, after decades of not winning very much, you can get all your ticket money back 
Fastpedaller
Über Member
Look at buying PBs as an alternative to buying national lottery tickets... the only difference is, after decades of not winning very much, you can get all your ticket money back
Ahh - that risk/reward conundrum! I agree with your logic, but of course some would say there are huge rewards if you put the money on a horse race and have a 1 in 20 chance of a 4x return! I could also say you have a 19 in 20 chance of no return. I remember many years ago the story on TV of a guy who sold his house and boat to go to Las Vegas with 190k (that shows how long ago!). He put the lot on red at the roulette table and won! I know I wouldn't have the courage. I'd start off with a tenner..... If that won I'd keep ten and then try with the other ten and give up if I lost that. Sadly, (as highlighted on TV this morning) there has been a huge increase in gambling addiction because of the cost-of-living situation.
MontyVeda
a short-tempered ill-controlled small-minded troll
- Location
- Lancaster... the little city.
but in those scenarios, you don't get your money back if you don't win... which was my point.
Fastpedaller
Über Member
Indeed - as I said, I agree with your logic!
Gwylan
Veteran
- Location
- All at sea⛵
Long ago I studied statistics and probability. That made me aware that the chances of losing were much higher than those of winning
The spiv bookie living across the road, before it was legal, drove a flash car and proclaimed to me it was a mugs game. But continued to take the punters money.
Later, work took me to Las Vegas regularly. That confirmed my conviction that the casinos obviously didn't have any great philanthropic committment.
Yes, I have premium bonds. Think I'm with the sentiment that it's time to move to a better return.
The spiv bookie living across the road, before it was legal, drove a flash car and proclaimed to me it was a mugs game. But continued to take the punters money.
Later, work took me to Las Vegas regularly. That confirmed my conviction that the casinos obviously didn't have any great philanthropic committment.
Yes, I have premium bonds. Think I'm with the sentiment that it's time to move to a better return.
ebikeerwidnes
Guru
- Location
- Z’ha’dum
They do publish the effective average interest rate
but of course there is always the remote possibility that you could win something much bigger
Apparently if you have more that £10000 then the odds are bigger that you will get a better overall rate - no idea why but it works out better and not just because you have more entries
glasgowcyclist
Charming but somewhat feckless
- Location
- Scotland
Look at buying PBs as an alternative to buying national lottery tickets... the only difference is, after decades of not winning very much, you can get all your ticket money back
That was my thought when I first put money in them but the return has been very poor. I’m over £100 worse off than if I’d drip fed the money into a savings account.
I might keep a couple of hundred max in there just as a hopeful gamble but I’ll seek proper growth elsewhere.
presta
Guru
If you're going to gamble, the lottery is probably the best way of going about it:
I recall a guy sitting at my table at the B&B when I was on holiday in Keswick once. He used to get up early each morning to go and fetch a newspaper, sit reading the horses over breakfast, then go and spend the rest of the day in the bookies. That was his holiday in the Lake District.
- You're in with a chance of winning a truly life-changing sum
- The stake is so small you're unlikely to lose the shirt off your back
- The probability of winning is small and you have to wait for gratification, so you're less likely to get addicted
I recall a guy sitting at my table at the B&B when I was on holiday in Keswick once. He used to get up early each morning to go and fetch a newspaper, sit reading the horses over breakfast, then go and spend the rest of the day in the bookies. That was his holiday in the Lake District.
Fastpedaller
Über Member
With Premium Bonds the average % of return (winnings) is the total return divided by the 'pot'. The total winnings includes the many small prizes along with the few large prizes, so most winners (and losers of course) will get a return of less than the 3.5% (or whatever is quoted) and a small number of winners will get a higher return. It's a risk/return which I'm happy to take, as has been said above your capital is returned. The most you lose each month is the interest on your capital, which could be about 5% at the moment and also depends on your tax liability. So on 10k 'investment' in Premium Bonds that's about £42 a month - not inconsiderable, but I'd not want to put that money into National Lottery tickets either. There was a website called "the futility of the NL" a few years ago (it may still exist) where a guy had his computer program picking 300 lottery tickets at random each week to see if he would have won. Most weeks he got a few £10 winners and in the (I think 3 years) that I followed it he got less than 2% return, and never any substantial ie over 10k win. Where I worked once there was a big syndicate and they put on £500 one week and didn't even win £10.
glasgowcyclist
Charming but somewhat feckless
- Location
- Scotland
Here’s a probability calculator to see what you might win, with average luck, by investing in premium bonds.
https://www.moneysavingexpert.com/savings/premium-bonds-calculator/
And here’s an example calculation for investing £10,000 for one year in PB v a savings account or an ISA.
https://www.moneysavingexpert.com/savings/premium-bonds-calculator/
And here’s an example calculation for investing £10,000 for one year in PB v a savings account or an ISA.
presta
Guru
Neither would I, because the lottery is gambling not an investment. The advantage of the lottery as a gamble is that for next to nothing (£1) you can have a (very small) chance of winning a life-changing sum if you want to.
glasgowcyclist
Charming but somewhat feckless
- Location
- Scotland
When did you last buy a ticket?!
Gwylan
Veteran
- Location
- All at sea⛵
That is so practical and depressing.
presta
Guru
1994
