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[Finance] Premium Bonds - prize pool increased again - you ever have any luck?
- Thread starter Mustafa II
- Start date
Beach Hut
Brighton Bhuna Boy
Very meagre month £100 between the two of us
Nicks
Well-known member
Absolutely nothing from a £40k holding
£300 total between us, a bit below par
nwgull
Well-known member
£175.
Have just maxed out between the 2 of us so am tragicly excited for July's draw and the riches it will inevitably bring.
Have just maxed out between the 2 of us so am tragicly excited for July's draw and the riches it will inevitably bring.
Ding Dong !
Boy I'm HOT today !
Like a school report:: Could do better
1 x £100 on a £47K holding
1 x £100 on a £47K holding
smiler
Well-known member
Poor month £225 between us
Blue&WhiteSea
Well-known member
Reading this thread is scary, have you all maxed out your investment ISAs?!
This chart shows the investment returns of a variety of indices, adjusted by CPI, for a £10k investment over a 10 year period.
As you can see, £10k held in an average 90 day notice account for the last 10 years would now be worth £8,366.86 when taking into account inflation. Even a fixed rate of 4.5% over that time would only be worth £11,633.09 (and that would have been almost unachievable with the low interest rates we had for years).
Compare that to the returns of a passive fund over the same time period, you could have doubled your money (even with the pandemic crashing the market), you are throwing away money!
This chart shows the investment returns of a variety of indices, adjusted by CPI, for a £10k investment over a 10 year period.
As you can see, £10k held in an average 90 day notice account for the last 10 years would now be worth £8,366.86 when taking into account inflation. Even a fixed rate of 4.5% over that time would only be worth £11,633.09 (and that would have been almost unachievable with the low interest rates we had for years).
Compare that to the returns of a passive fund over the same time period, you could have doubled your money (even with the pandemic crashing the market), you are throwing away money!
£100 from max holding. Not exactly turning cartwheels, but it's better than a mallet in the vitals.
Bit of a simplistic view. What about overall portfolio balance, attitude to and tolerance of risk, time horizon, ease of access (and within a time period), spending plans, pensions etc ?
Eric Potts
Well-known member
£450 this month from £50k. £975 so far this year.
slimes
Well-known member
Quick question..
Can you put 20k in an isa each year. So in 5 years time have £100000 in isas?
wigman
Well-known member
250 for me this month.
Was dropped to 4.4% in March, hasn’t changed since
Blue&WhiteSea
Well-known member
I tried to keep it fairly simple to illustrate the point of how poor premium bond returns are over long periods of time.
I'm not advocating everyone throw every spare penny they have into investments but i think premium bonds and cash savings accounts are a poor choice for any long term investment.
If you look at risk more generically in terms of the risk of your money not having the same spending power in future rather than purely in terms of volatility then savings accounts and premium bonds are actually higher risk for long term investments.
I'm also kind of assuming anyone who has maxed out on premium bonds already has an emergency fund to cope with anything that requires immediate access to funds