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Premium Bond Returns
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Anyone know the average return on premium bonds? I seem to remember reading somewhere that a person with 'average luck' would get a return of around 3% on the outlay. Anyone know what percentage of investments is paid back in prizes?
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For more on marking an answer as the "Best Answer", please visit our FAQ.Premium Bonds are effectively gilt-edged securities: you loan your money to the government and in return it pays you interest.
Your capital is guaranteed to be returned at a specified date, and you can get your cash back within a fortnight at any time, with absolutely no risk.
Where Premium Bonds differ from normal bonds, however, is that the interest payments - 2.15 per cent a year - are pooled and paid out as prize money to the winners of a monthly draw.
http://www.channel4.com/4money/banking/guides/premium_bond_g uide_220903_page1.html
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