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Are premium bonds worthwhile?
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I am reconsidering putting my money in them. They were worthwhile but they have slashed the interest and prize amounts.
Looking for an alternative if I can’t find one I will keep my money in. I use my ISA entitlement so have no room in that respect. |
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They make me about £25 every 18 months or so. A much better return than my other savings although it isn't guaranteed. Plus it's such a faff cashing them in that I think they're worth it for that alone. |
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By (user no longer on site)
over a year ago
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Yeah & no.
So, premium bonds are great essentially to just store cash.
Interest rate on premium bonds are currently at 1.4% which when compared to the UK banks current interest rate is 1.31% so not only are you gaining additional percentages - you’re also entering the possibility of being drawn in a draw.
I have myself won money on my premium bonds, but choose to have it re-invested month-on-month.
So short answer, yes 
If you need any finance related questions - anyone can feel free to shoot me a message & I’ll be more than happy to give an answer |
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By *rHotNottsMan
over a year ago
Dubai & Nottingham |
Stats so no, even if you hold the max amount, the stats show returns slightly lower than the best instant access savings accounts.
But it’s luck not investing , you may get lucky and beat the stats or perform with worse than average luck.
So no, not worth considering unless it’s done for enjoyment only or you are happy to see it for what it is - gambling with no risk to capital.
On the final point remember that if your savings/bonds are not even beating inflation, then you are actually risking / losing capital
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By (user no longer on site)
over a year ago
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Depends on how much you have to invest. The maximum amount generates typically £100 - £250 pcm, whereas (say) £500 may generate £25 every few months. You may win the big prize if you're lucky but I think they are changing the prize value so that becomes less likely.
However, your invested money is safe and guaranteed (as it is up to £85k in the banks.  |
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By *rHotNottsMan
over a year ago
Dubai & Nottingham |
"I get more in winnings in financial terms than any of my other investments . ( low to medium risk)"
How do you know ? The only time you win or lose capital is when you sell, there’s actually no such things as gains or losses until you sell stock , it’s just numbers in a computer screen that constantly change |
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"I get more in winnings in financial terms than any of my other investments . ( low to medium risk)
How do you know ? The only time you win or lose capital is when you sell, there’s actually no such things as gains or losses until you sell stock , it’s just numbers in a computer screen that constantly change "
I know because I’m
Mathematically gifted . Not talking about higher risk investments. I said low to medium risks |
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By *amissCouple
over a year ago
chelmsford |
"I think so. I've steadily built up to the maximum holding over the years, and it's very rare I don't pick up around 25% each year.
Some people have written about risk, there is none."
You get 25% of your holding, in retun? |
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By (user no longer on site)
over a year ago
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"I think so. I've steadily built up to the maximum holding over the years, and it's very rare I don't pick up around 25% each year.
Some people have written about risk, there is none.
You get 25% of your holding, in retun?"
Lol - no-one is getting 25% gains?! That’s ridiculous! Top traders will be lucky to gain 12% a year.
Even 5% guaranteed would be massive! |
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By *amissCouple
over a year ago
chelmsford |
"I think so. I've steadily built up to the maximum holding over the years, and it's very rare I don't pick up around 25% each year.
Some people have written about risk, there is none.
You get 25% of your holding, in retun?
Lol - no-one is getting 25% gains?! That’s ridiculous! Top traders will be lucky to gain 12% a year.
Even 5% guaranteed would be massive! "
That's what I'm thinking surely he's got it wrong, we get about 1.5% on our holdings  |
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By (user no longer on site)
over a year ago
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What’s everyone smoking here?...
I’ve got a considerable amount of capital in my premium bonds - people quoting ridiculous returns. I’ve never made more than 5% in a single year.
Even trading I’d call it a successful month pulling a return of 9%+
Well clearly it’s worth it seeing some people’s returns! Damn, better return than a portfolio of rental properties... |
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