According to the Motley Fool, the prize fund rate is 3%, which is the equivalent of a 5% return for a higher rate taxpayer and 3.75% for a basic rate taxpayer.
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http://www.nsandi.com/products/pb/howitworks.jsp
Hmm...maybe the 'prize fund' rate averages 3%, but that doesn't mean everyone gets that. Sounds more like the lotto to me.
I think a few quid each week picking some numbers and have the chance of 'winning a prize', while investing all the rest in something else seems a much better option...Comment
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Indeed, as I said earlier I've had £500 worth for 35 years and my rate of return has been 0%. However, unlike the lotto you do get to keep your stake if you don't win, which is quite a crucial difference.Originally posted by Joe BlackComment
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"However, unlike the lotto you do get to keep your stake if you don't win, which is quite a crucial difference."
Hmm...not really...
If you had invested that 500 quid in a savings account returning just a few percent each year then you could have used the interest to possibly pay for a gamble on the lottery each month, and would still have the original 500 untouched...devalued due to inflation of course.
Putting up to £30k as they suggest in something which guarantees no return, or sticking it in an online saving account and having up to a grand a year to spend on the lotto doesn't seem to suggest it has any advantage...Comment
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Absolutely Wendigo. The rate was long ago adjusted for the zero tax so in effect there was very little tax benefit. Another disguised Gordon Brown stealth tax to pay for TB ego wars, third world parasites etc.bloggoth
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