Premium Bond Returns

[Hammer]

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?

[ewand]

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

[Oneeyedvic]

Currently 3.2%

http://www.nsandi.com/interest-rates/index.jsp

[Hammer]

Thank you both. I think Oneeyedvic's is probably correct as it comes from the official website.

 

Should have looked there myself ;-)

[ewand]

I think your probably right.....good answer, oneeyedvic

[Oneeyedvic]

No problem, nice to be appreciated.

[insurance]

hope you have more luck than me I have had my bonds

for 14 years and never won a penny.still i would never cash them in as unlike the lottery you can get your money back.

[droopdrawers]

Not sure they are really worth investing in.

I had a relative who had the full �30.000 for 2 years and only ever won the odd �50 and just once �100.

DD