Premium Bonds

[Ric.ror]

So what's this in the budget about increasing the prizes

[mikey4444]

LG...I have made it abundantly clear, that Premium Bonds have a place in some peoples financial portfolios. But not everybodys. If is pleases you than I am more than willing to withdraw daft and ludicrous, because they are clearly suitable for your Mum and others who like a flutter and that appear to be doing very well out of them. But for millions of people Premium Bonds are dead money, that is shrinking every year.

Martin Lewis says on his website that :::

"There's heavy positive spin about Premium Bonds, after all NS&I is state-backed, and they help generate Government funds and cash flow. But in pure cash terms, they're worth considering as a place to put savings if you're a higher or additional rate taxpayer, but basic-rate and non tax-payers are unlikely to win enough to beat the odds"

By the way, inflation hasn't always been a piddling amount. Its has been much higher in the past and who knows, it may rise again. And when it does rise again, Premium Bonds will be less value than they are now.

My regards to your lucky Mum.

[LazyGun]

@Sqad. Thats kind of my point. And if you think that "left-wingers" are uninterested in finance, or incapable of thinking about savings and investments, then you have a very warped idea of what "left-wing" is all about.

It is not some monolithic block that believes in confiscating all wealth and ensuring everyone dresses the same and thinks the same, although I know that is what you think it is ;)

[mikey4444]

Tilly...I hope you are a millionaire as well, but you will need to keep your fingers firmly crossed. Please let us know if it happens though !

[royfromaus]

I once held £120,000 of premium bonds. When I decided to take the money back out, I got back £120,000.
If that money was in the bank there was a risk that I could lose a big part of it. If I had bought property at that time (I did consider that) I would have been in negative equity about 18 months later.
Premium bonds were the best option for me at that time. I eventually used the money to buy property at a nice discounted figure.

[mikey4444]

Sqad...with the greatest respect, I must agree with LG here. Being left wing doesn't preclude anybody from wanting a decent return on their savings.

[Sqad]

LG

\\\ensuring everyone dresses the same and thinks the same, although I know that is what you think it is ;)\\\

LOL....you know me too well.

roy...how did you get £120,000 of Premium Bonds?

[royfromaus]

I wonder if Mikey is so anti premium bonds because they were introduced by the Tories?

[royfromaus]

roy...how did you get £120,000 of Premium Bonds?


Simple, fill out the forms.

[Sqad]

roy...;-)

I never thought of that!

[Tilly2]

Roy, you can only have 30,000 each. Do you have four different identities?

[mikey4444]

royfromaus...please tell us how you managed to hold £120,000 in Premium Bonds when the maximum holding, per person, is only £30,000 ?

[Tilly2]

........well, it will be 40,000 soon.....

[royfromaus]

Maybe, Mikey can help you out on the answer?

[LazyGun]

@Mikey - I agree with Martin Lewis's assessment of Premium Bonds. Nowhere in his assessment does he call them "ludicrous" or "daft". And yes, inflation has been higher - but in this country,certainly since 2000 until the very recent fluctuations, we have had stable inflation.

Effectively, an investment into Premium bonds is risking a roughly 2% erosion in their savings, set against the possibility, remote though it might be, of winning a life changing sum. For many many people that is a perfectly acceptable risk.

[mikey4444]

As Alice once said, curiouser and curiouser !

[royfromaus]

Ah, perhaps not!


Tax and you do not need to declare it on your tax return. Anybody over the age of 16 can buy Premium Bonds, and you can also buy them on behalf of your child or grandchild.

[mikey4444]

royfromaus...what answer ? What we would like to know is how you managed to hold 4 times the maximum holdings allowed in Premium Bonds. You say you did, so the answer might be better coming from you !

[royfromaus]

I'm shocked a former financial advisor was not aware of this.

http://www.nidirect.gov.uk/apply-for-premium-bonds

[mikey4444]

Ah ! ..now we understand...you didn't hold more than £30,000 after all. How long did you and your relatives hold the Bonds and therefore how much did you lose over the period due to inflation ?

[Tilly2]

My dad bought mine for me but they are mine, not his.