Re: Premium Bonds
Originally Posted by
Julie1962
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Ooh we just realised we won £25 now that might not seem much but if we had left it in our savings account we would have got just £2.50 so it's a good return for us.
A savings account is not really the right comparison to make when assessing the merits of premium bonds TBH.
The proposal really is, can my money be
invested somewhere to produce bigger returns than the returns I am likely to get using Premium Bonds?
The answer in most cases will likely be YES, you can invest your money in many places that will provide a better return than Premium Bonds. A Savings Account is not an investment as such.
With both Premium Bonds and Savings Accounts you are basically saying "I'm too lazy to learn about basic money investing and instead I will give my hard earned money to someone else who will invest it themselves, take the profits from that investment and give me back very little in return"
Last year I invested about £3000 from my private SIPP in some shares in an energy company. The shares were less than 1p each. A few months ago those shares rose to over 7p a share. My investment was then worth about £25,000.
Took less than 1 min effort to buy the shares in the first place. Of course some you win and some you lose, but managing your own money is far better than giving it away to someone else.