Re: Premium Bonds
Originally Posted by
Emjay
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Mr Realist, you may have forgotten to mention the depreciation of the value of the £ whilst it is stuck in Premium bonds for years.
While this appears to be a correct statement, it isn't as simple as that...
As a rough guide, you would need to double your original nest-egg every seven years to keep up with inflation.
This is how the government have raised a lot of money over the past two decades. They have deliberately lowered the interest rates for savers, and they are the ones who have lost out.
The people who get any benefits are the borrowers, such as the mortgage holders.
Thus, the governments can correctly say that the poorer people are better off now than twenty years ago.
However, we all know that the people who really are better off are the bankers, and civil servants on obscene salaries and bonuses.
The rich get richer, and the poorer get poorer.