Finance/Savings
2007-02-20 10:31:44 · 13 answers · asked by Elbek N 1 in Business & Finance ➔ Investing
What we all know: Premium Bonds form a large pool of investment money on which the National Investment people calculate an interest return. The % return is 'divvied' up into prizes that are doled out to winners of a random draw. This makes it a sort of gamble but one in which you gamble your interest income and growth against a potential high prize. Your original investment remains intact, this is the fundamental difference from normal gambling.
What you may not know: most of the pool of money is lent on national and international money markets and gets a MUCH higher rate of return than the amount handed out as prize money. The rest goes into the Government's pocket as a sort of stealth tax. While your 'investment' remains intact its purchasing power is constantly eroded by inflation. At the moment it is losing 2-3% a year; during periods of high inflation and they occur every 10-20 years, you might lose 10-15% a year! £100 spent on Premium Bonds in 1956 was probably worth £2,500 in todays money; properly invested it would be worth over £10,000 today.
I have a £1 bond bought in 1958 (i.e about 1 days average wage at that time) that has never won; some years ago I ran a group that put a couple of £s a head per month (peanuts) into Premium Bonds. After a couple of years we had won once (£50) on a pool grown to about £400.
Premium Bonds are NOT an investment they are a long-term gamble. If you only have a limited amount of disposable investment income for long-term wealth production, well-researched unit trusts would probably be the better way to go.
2007-02-20 11:17:48 · answer #1 · answered by narkypoon 3 · 0⤊ 0⤋
I have had some premium bonds for over 40 years and have never won a prize. When they were bought at a pound each, they were very expensive. they are still worth a pound each. I even wrote to ask them to check if Id won. But i hadnt
2007-02-20 10:35:44 · answer #2 · answered by jeanimus 7 · 0⤊ 0⤋
I did once. I had £1000 I was holding ready to buy a house (A few years a ago" I put in into bonds for 6 months and won £50
2007-02-20 10:34:58 · answer #3 · answered by Maid Angela 7 · 0⤊ 0⤋
I worked with a guy many years in the past who had the optimal invested in genuine classification bonds, like, 20,000 pounds i imagine it became. there became hardly ever a three- month era the position he did not win some thing yet they were all truly small prizes, one hundred quid or regardless of. in case you evaluate the prizes to what you would earn from interest in a monetary agency, it really is about an similar. yet there is continually the potential of an enormous win for sure.
2016-12-04 10:40:51 · answer #4 · answered by ? 4 · 0⤊ 0⤋
I've had premium bonds for years, never won a penny. A friend, who holds the max wins almost every month, various amount!
2007-02-20 10:34:53 · answer #5 · answered by jet-set 7 · 0⤊ 0⤋
I think they are a win win situation!
Do you play the lottery?
How often do you win?
I put a small amount in premium bonds and was lucky enough to win.
And unlike the lottery I can get my dosh back if I do not win.
Win Win.
2007-02-20 11:05:08 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I won £50 back in 1999. not sure if I'm still invested in them after winning (otherwise I'd be going ahead and investing a little bit more).
2007-02-21 03:27:36 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I haven't won any prizes, but if you want to check your bonds, go to http://www.postoffice.co.uk/savings&investments to check yours.
2007-02-20 10:36:45 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I have won £50. They don't earn interest but you don't lose anything and you could win up 1 million.
2007-02-20 10:47:47 · answer #9 · answered by crazy child 3 · 1⤊ 0⤋
yeah, i heard a mates uncle's great grandpa's dad's kids girlfriend who went out with the chap who ran the local pub, who knew a man living on the welsh border WON, i think it was £100?
2007-02-20 10:36:39 · answer #10 · answered by bluecow 5 · 0⤊ 0⤋