- It’s Premium Bonds draw day.
I’m intrigued by them but can someone explain why they are so popular?Posted 11 months ago
I’ve read that there is over £70 billion invested in them but the odds of winning anything are quite low and they do not yield interest.
As others have said, they’ve won bugger all over many years and when you take inflation into account the amount invested is worth less and less as time goes by.
They are tax free as are the winnings, and easy to manage / forget. 10 x the amount I have in Bonds in todays high interest account attracts slightly I more gain annually in interest than I’ve received but I’d have to pay income tax on that interest gain, which actually negates the difference.
And of course there is the “lure” of a decent sized win.Posted 11 months ago
“As others have said, they’ve won bugger all over many years and when you take inflation into account the amount invested is worth less and less as time goes by.”
All relevent to how much you have invested.
Mines kept up with a decent savings account over the years and I don’t have to move it around each year filll out paperwork and keep on top of the admin to ensure it does so.Posted 11 months ago
new personal savings allowance
I didn’t know about that, my Accountant deals with my affairs 😀
For me personally – an accountant notwithstanding – its not having to declare/administer the income and a chance of the win I guess. Its simple for me to have a DD setup and elect for winnings to be re-invested as Bonds, so I can forget about the account and leave it for a rainy day at some point in the future – final mortgage balance, kids into uni that kind of thing.Posted 11 months ago
I don’t think many people use them as their sole means of saving, but as part of a mixed investment portfolio they make sense. If you look at the big Jan prize winners most have holdings of tens of thousands and that’s not the sort of sum you’d leave if it wasn’t working for you. They’re low risk, quick access, typical yield on a par with similar instant access savings accounts but potential yield much higher.Posted 11 months ago
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