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Thread: Premium Bonds

  1. #1
    Join Date
    Sep 2004
    Location
    Geraldine New Zealand
    Posts
    17

    Default Premium Bonds

    Has anyone thought of putting their money into Premium Bonds. This is what we are going to do. We are putting pretty well all of our money into Bonds, all but enough to buy a car and horse for me!!

    Also any prizes you win, are TAX FREE
    IF you have the maximum holding your chances of winning are very good.

    Cheers Pam :P

  2. #2
    Join Date
    Aug 2004
    Location
    UK
    Posts
    322

    Default Re: Premium Bonds

    Quote Originally Posted by Pam Learnihan
    Has anyone thought of putting their money into Premium Bonds. This is what we are going to do. We are putting pretty well all of our money into Bonds, all but enough to buy a car and horse for me!!

    Also any prizes you win, are TAX FREE
    IF you have the maximum holding your chances of winning are very good.

    Cheers Pam :P
    Good point Pam

    I read somewhere before that the return is average for the investment, say compared to some savings accounts. The difference is that the potential up side is massive.

    Thanks for the reminder, definitely worth a go

    cheers

    alex

  3. #3
    Join Date
    Sep 2004
    Location
    Essex, UK
    Posts
    253

    Default

    Hi Pam

    It is widely accepted that PB should form part of any spread of investments but not all of your investment. People with large sums to invest often have the maximum allottment of PB as part of their portfolio

    Although winnings are tax free and obviously there is the chance of winning one of the big prizes, you will probably find that the return you get on your investment will be no better than that invested wisely in the market place. this is because the prizes given out are adjusted depending on interest rates etc
    Also you will not get any growth on your investment

    Depends on your "risk" factor I guess, but chances are you will get a good return in one of the internet banks high interest accounts which is arguably just as safe

    See an independent financial adviser (not one attached to a bank) for better advice

    Good luck!

  4. #4
    Join Date
    Aug 2004
    Location
    NZ
    Posts
    209

    Default

    Pam, that is one of our plans as well, PB to the max
    Several years ago we had 10grand invested, and very few months would go by without us pulling in a tenner or a hundred here and there. We weren't serious investors then, and did it more with a :hopeso attitude.
    This time around, same deal, if you can stick 20 grand away without missing it too severely, then go for it, its great fun checking numbers every month, and beats the hell out of the pink pages of the FT!! :eek

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