A mate just sent me a link to this handy calculator on moneysaving expert. The answer seems to be 'no' so far.
http://www.moneysavingexpert.com/savings/p...nds-calculator/
Full Version: Premium Bond Calculator
they're great for the investor who
a)enjoys getting minimal returns on their investment
b)wants to buy flack jackets for our soldiers
c)doesn't know the difference between a discussion on house prices and one on general investment
a)enjoys getting minimal returns on their investment
b)wants to buy flack jackets for our soldiers
c)doesn't know the difference between a discussion on house prices and one on general investment
Bump 
QUOTE (Badger @ Dec 20 2007, 03:33 PM) 
Bump
It all depends if your luck is in or not, just like any other non-skill competition or draw.
If it is, whooopeeeeee you'll be pleased you bought them.
If it ain't, you'll mourn the lost interest you could have had from a good savings account.
No one can forecast luck.
Probability says this or that - but luck or Providence will dictate if the PB calculator forecast is too pessimistic.
There are other threads on this here and other forum websites - with lots of anecdotes to draw on (pardon the weak pun).
I've a little in PBs, my winnings are below average.
I know they not for the purist but I bought them 1) for amusement and 2) to save opening yet another back account with c £30k (ie for the compensation scheme)
In the last 7 months I have had £1100 so around £1900 annualised and tax free too. Needless to say, I'll likely draw a blank for the next 5 months.
My experience with them over two years is c £1300 - £1500 p.a.
In the last 7 months I have had £1100 so around £1900 annualised and tax free too. Needless to say, I'll likely draw a blank for the next 5 months.
My experience with them over two years is c £1300 - £1500 p.a.
I held £100,000 in 4 names for 3 months
Jan 08 £300
Dec 07 £200
Nov 07 £150
Total £650
Pulling all out today and splitting in to 33000 lumps between 3 banks @ average 6% +
Putting into wife's name (non tax payer)
We should see a return of ~ £500 / month
Total ~ £1500
Not even worth a try.
Jan 08 £300
Dec 07 £200
Nov 07 £150
Total £650
Pulling all out today and splitting in to 33000 lumps between 3 banks @ average 6% +
Putting into wife's name (non tax payer)
We should see a return of ~ £500 / month
Total ~ £1500
Not even worth a try.
Basic answer.....
For higher rate tax payers, mathematically it might work.
For normal rate payers, mathematically not worth it.
Also the total prize fund is not equally distributed, so a 4.5% prize fund (pseudo-interest rate) would be the average on the total amount received by all winners. But this is one lucky million pound win and lots of smaller wins. The chances are, you will be one of the smaller winners, so your share won't be on average 4.5%.
Bear in mind though, people play the lottery, with worse odds, and no chance of their money back.
For higher rate tax payers, mathematically it might work.
For normal rate payers, mathematically not worth it.
Also the total prize fund is not equally distributed, so a 4.5% prize fund (pseudo-interest rate) would be the average on the total amount received by all winners. But this is one lucky million pound win and lots of smaller wins. The chances are, you will be one of the smaller winners, so your share won't be on average 4.5%.
Bear in mind though, people play the lottery, with worse odds, and no chance of their money back.
Forgot this
Interest now is @3.8% on Premium bonds.
Interest now is @3.8% on Premium bonds.
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