Premium Bonds

[Pondlife]

Does anyone use these for savings? You can put up to £30K in I think but does anyone have an idea of the returns you get? The 'winnings' are tax free.

[ASB]

The chances of winning are adjusted to reflect the current BOE interest rate...

It's rather less than that. Currently 2.95%.

http://www.nsandi.co.uk/products/pb/rates.jsp

[DimPrawn]

But since the winnings are tax free, for 40% tax payers this represents a return of 5.42%

Saying that, my wife has £30K in premium bonds and has won nothing for about 12 months.

So a real world return of 0.00%

[ASB]

But since the winnings are tax free, for 40% tax payers this represents a return of 5.42%

Saying that, my wife has £30K in premium bonds and has won nothing for about 12 months.

So a real world return of 0.00%

I reckon it's effective 4.92 across the pool so one of us can't add up

General consensus would seem to be that keeping 30k in premium bonds in the context of a balance portfolio is prodably a good thing. Mrs DP must have been a bit unlucky.

I've never won a thing either. But I only have 1 one pound bond that dates from 1960. At 24,000 to 1 against if I can keep going for anoth 416 years I'm almost certain to win at least 50 quid.

[DimPrawn]

Yes your maths is correct. I was using the some old data when interest rates were higher.

[Emperor Dalek]

Mrs Emperor Dalek has held £500 worth of premium bonds for 35 years. Returns to date total: £0

[ASB]

Mrs Emperor Dalek has held £500 worth of premium bonds for 35 years. Returns to date total: £0

Have you done a check? If so I would think being married to somebody that unlucky is probably grounds for divorce.

Monthly draw so 35 * 12 * 500 = 210,000 chances. Current odds for a single £1 unit = 24,000 to 1. Possible, but unfaesibly unlucky.

[hyperD]

The chances of winning are adjusted to reflect the current BOE interest rate...

The chances of anything coming from NS&I are a million to one.

hyperD in "Jeff Wayne" mode

[threaded]

Saying that, my wife has £30K in premium bonds and has won nothing for about 12 months.

So a real world return of 0.00%

Cash them in and buy some new ones, she'll start winning again.
I would tell you why this works but I would prefer National Savings to give me a big wad of money first for consultancy services.

threaded in "professional gambler" mode

[DimPrawn]

Now that sounds and smells like bulltulip.