Premium Bond withdrawal & reinvestment

Money, investing, mutuals etc
pabenny
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Re: Premium Bond withdrawal & reinvestment

Post by pabenny » Sat Dec 17 2022 9:03am

Just because the prize fund is 3%, doesn't mean an average holder earns 3%. The handful of big prizes swallows up a good proportion of the total, leaving that much less for the majority.

Leaving aside the "fun" element, the only virtue of premium bonds is that winnings are tax free.
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Premium Bond prize rate increases

Post by Richard Frost » Thu Jul 06 2023 8:05am

Premium Bond prize rate increases to 4%

https://becleverwithyourcash.com/premiu ... -hack-more
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planteria
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Re: Premium Bond withdrawal & reinvestment

Post by planteria » Thu Jul 06 2023 4:47pm

good news. my £100 will on average bag £4/y :)
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Re: Premium Bond withdrawal & reinvestment

Post by pabenny » Fri Jul 07 2023 6:21am

planteria wrote:
Thu Jul 06 2023 4:47pm
good news. my £100 will on average bag £4/y :)
Actually, it won't.

Because a big chunk of prize money goes to a tiny number of big winners, the median average (ie what most people get) ends up being lower than the headline rate.
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Re: Premium Bond withdrawal & reinvestment

Post by Sarah » Fri Jul 07 2023 9:48am

I recently topped up my holding. Looking forward to winning that £1 million! :thumbup:
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Re: Premium Bond withdrawal & reinvestment

Post by blythburgh » Fri Jul 07 2023 10:36am

Sarah wrote:
Fri Jul 07 2023 9:48am
I recently topped up my holding. Looking forward to winning that £1 million! :thumbup:
In the same way you look forward to winning the Lotto jackpot as well, Sarah I am sure. I used to know someone who used to buy lotto tickets and always doubled their stake if it was a rollover "to give themselves more chance of winning". They really did believe more tickets gave them more chance, which it did but not in any meaningful way
Keep smiling because the light at the end of someone's tunnel may be you, Ron Cheneler

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Re: Premium Bond withdrawal & reinvestment

Post by Sarah » Fri Jul 07 2023 10:45am

I don't play the Lotto. I purchased a ticket for the first ever draw (partly because it also happened to coincide with another significant date for me) but that's all, no more in the 29½ years since then!
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Re: Premium Bond withdrawal & reinvestment

Post by planteria » Fri Jul 07 2023 2:33pm

good luck with your PBs Sarah.
pabenny wrote:
Fri Jul 07 2023 6:21am
Actually, it won't...the median average (ie what most people get) ends up being lower than the headline rate.
why you'd want to quote the median average in response to my comment is beyond me, but ok pab.
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Re: Premium Bond withdrawal & reinvestment

Post by pabenny » Sat Jul 08 2023 9:00am

To make the point that although the prize fund is 4% of the value bonds in issue, that doesn't mean that holders will earn a return of 4%, even those with large holdings.

A few premium bond holders, very few, will earn more than 4%. Most will earn much less.

The prize fund for the national lottery is approx 50% of stake money but average (mean) winnings are tiny because most of the prize fund goes to the jackpot winners.
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Re: Premium Bond withdrawal & reinvestment

Post by planteria » Sat Jul 08 2023 11:25am

all of that is well known amongst the contributors here, i'd have thought.
fwiw 'average' means 'mean' to me.
if i bag £25 on my £100 i'll be very pleasantly surprised.
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