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Premium Bonds

thebarns
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Re: Premium Bonds

#373449

Postby thebarns » January 5th, 2021, 2:36 pm

The highlight of the month as we move into lockdown is the family Premium Bond prize reveal......

We appear to have used up an above average chunk of our luck with January prizes of £75, £75, £50 and £25 from 4 maximum holdings.

Just counting down the days till the next draw......

csearle
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Re: Premium Bonds

#373530

Postby csearle » January 5th, 2021, 5:44 pm

I'm a PB noob. Put in £50K and just enjoyed my first chance of a payout today. Result: £75. I've extrapolated from this and figure I'll be buying Microsoft at some stage. ;)

Chris

swill453
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Re: Premium Bonds

#373533

Postby swill453 » January 5th, 2021, 5:46 pm

csearle wrote:I'm a PB noob. Put in £50K and just enjoyed my first chance of a payout today. Result: £75. I've extrapolated from this and figure I'll be buying Microsoft at some stage. ;)

Yes, another month like that and you'll be able to afford a Windows 10 licence :-)

Scott.

neversay
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Re: Premium Bonds

#373830

Postby neversay » January 6th, 2021, 1:34 pm

FWIW £25k in Premium Bonds held for six drawers and I've £25 won in each of the six drawers. All I need now is one of my regular monthly wins to be £1m... :P

staffordian
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Re: Premium Bonds

#373832

Postby staffordian » January 6th, 2021, 1:42 pm

neversay wrote:FWIW £25k in Premium Bonds held for six drawers and I've £25 won in each of the six drawers. All I need now is one of my regular monthly wins to be £1m... :P

Early days for me; £15k in play for the last two draws, nothing at all so far :(

neversay
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Re: Premium Bonds

#373834

Postby neversay » January 6th, 2021, 1:45 pm

staffordian wrote:
neversay wrote:FWIW £25k in Premium Bonds held for six drawers and I've £25 won in each of the six drawers. All I need now is one of my regular monthly wins to be £1m... :P

Early days for me; £15k in play for the last two draws, nothing at all so far :(


OMG just noticed that in haste I had typed drawers instead of draws. :oops:

It's probably time to take a tea break. :roll:

staffordian
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Re: Premium Bonds

#373892

Postby staffordian » January 6th, 2021, 3:21 pm

neversay wrote:
staffordian wrote:
neversay wrote:FWIW £25k in Premium Bonds held for six drawers and I've £25 won in each of the six drawers. All I need now is one of my regular monthly wins to be £1m... :P

Early days for me; £15k in play for the last two draws, nothing at all so far :(


OMG just noticed that in haste I had typed drawers instead of draws. :oops:

It's probably time to take a tea break. :roll:

I'm thinking I might do just as well if mine was in my drawers :)

XFool
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Re: Premium Bonds

#373959

Postby XFool » January 6th, 2021, 5:07 pm

neversay wrote:
staffordian wrote:
neversay wrote:FWIW £25k in Premium Bonds held for six drawers and I've £25 won in each of the six drawers. All I need now is one of my regular monthly wins to be £1m... :P

Early days for me; £15k in play for the last two draws, nothing at all so far :(

OMG just noticed that in haste I had typed drawers instead of draws. :oops:

I always refer to that kind of thing as "Keyboard Dyslexia". It afflicts even those of us who would otherwise show no sign of conventional Dyslexia.

AleisterCrowley
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Re: Premium Bonds

#373969

Postby AleisterCrowley » January 6th, 2021, 5:20 pm

I seem to have a terrible problem with typing training and finance: they come out as traing and fiance

AleisterCrowley
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Re: Premium Bonds

#374120

Postby AleisterCrowley » January 6th, 2021, 11:34 pm

A thrilling, nay exhilarating, twenty-five poonds for me on a holding just shy of £13k
First win since May 2020

neversay
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Re: Premium Bonds

#376398

Postby neversay » January 12th, 2021, 10:31 pm

So what would happen to Premium Bonds should interest rates went negative?

It would seem like the first place to park large sums, so surely the resulting influx of funds would mean the Government has to freeze PBs?

swill453
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Re: Premium Bonds

#376410

Postby swill453 » January 12th, 2021, 11:08 pm

neversay wrote:So what would happen to Premium Bonds should interest rates went negative?

It would seem like the first place to park large sums, so surely the resulting influx of funds would mean the Government has to freeze PBs?

Well the prize fund rate is currently 0.75% above the BoE base rate, don't you think that could be sustained?

Scott.

neversay
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Re: Premium Bonds

#376422

Postby neversay » January 13th, 2021, 5:42 am

swill453 wrote:
neversay wrote:So what would happen to Premium Bonds should interest rates went negative?

It would seem like the first place to park large sums, so surely the resulting influx of funds would mean the Government has to freeze PBs?

Well the prize fund rate is currently 0.75% above the BoE base rate, don't you think that could be sustained?

Scott.


I would be parking a six-figure sum in there for a start. Wouldn't it draw too much capital away from the high street banks?

swill453
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Re: Premium Bonds

#376432

Postby swill453 » January 13th, 2021, 7:27 am

neversay wrote:I would be parking a six-figure sum in there for a start. Wouldn't it draw too much capital away from the high street banks?

I assume you know the maximum holding is £50,000?

Scott.

neversay
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Re: Premium Bonds

#376510

Postby neversay » January 13th, 2021, 10:44 am

swill453 wrote:
neversay wrote:I would be parking a six-figure sum in there for a start. Wouldn't it draw too much capital away from the high street banks?

I assume you know the maximum holding is £50,000?

Scott.


I'd forgotten that, but that's helpful to know as I had topped up my holding to £45k last week.

I'm still intrigued though that in a (theoretical) negative interest rate environment, Premium Bonds even at 0.75% and losing against inflation would surely attract too much capital inflow away from banks to be sustainable?

dealtn
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Re: Premium Bonds

#376515

Postby dealtn » January 13th, 2021, 10:48 am

neversay wrote:
swill453 wrote:
neversay wrote:I would be parking a six-figure sum in there for a start. Wouldn't it draw too much capital away from the high street banks?

I assume you know the maximum holding is £50,000?

Scott.


I'd forgotten that, but that's helpful to know as I had topped up my holding to £45k last week.

I'm still intrigued though that in a (theoretical) negative interest rate environment, Premium Bonds even at 0.75% and losing against inflation would surely attract too much capital inflow away from banks to be sustainable?


Retail deposits aren't the only source of bank funding. I suspect it will be only marginal. A bigger impact on banks with negative interest rates will be continued margin compression. Billions of pounds sitting in costly to provide current accounts "earning" a relatively even more attractive 0%.

neversay
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Re: Premium Bonds

#376521

Postby neversay » January 13th, 2021, 11:02 am

dealtn wrote:
neversay wrote:
swill453 wrote:I assume you know the maximum holding is £50,000?

Scott.


I'd forgotten that, but that's helpful to know as I had topped up my holding to £45k last week.

I'm still intrigued though that in a (theoretical) negative interest rate environment, Premium Bonds even at 0.75% and losing against inflation would surely attract too much capital inflow away from banks to be sustainable?


Retail deposits aren't the only source of bank funding. I suspect it will be only marginal. A bigger impact on banks with negative interest rates will be continued margin compression. Billions of pounds sitting in costly to provide current accounts "earning" a relatively even more attractive 0%.


Thanks Scott and @dealtn. I was thinking of it less from the banks' position and more from the Government in that NS&I rates have already been dropped, and prize funds reduced, to discourage further inflows. NIRP would surely mean further dilution given that 0.75% and Government-backed security is comparatively attractive.

Have there been any other discussions on LF about the consequences of NIRP?

In my novice mind, the move to an economy with negative rates feels like the coin pusher machines in amusement arcades - money keeps going in at the top until the overhang gets too much. Only the winners are the ones that can scoop up the money when the lot crashes down.

richlist
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Re: Premium Bonds

#376737

Postby richlist » January 13th, 2021, 7:36 pm

Wouldn't one option open to the Gov' be to suspend any new investment in P/Bonds.....and either carry on with the monthly draw or not as they choose.

We have money in the Family Building Society prize draw bond. They suspended new investments some time ago but have continued with the monthly prize draw.

PinkDalek
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Re: Premium Bonds

#377308

Postby PinkDalek » January 15th, 2021, 12:55 am

neversay wrote: ... Have there been any other discussions on LF about the consequences of NIRP?


Maybe not the ‘P’ but there are one or two related topics at “Macro”, such as:

viewtopic.php?f=76&t=21177

Just spotted that one was last January not this but anyway ...

Bouleversee
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Re: Premium Bonds

#377312

Postby Bouleversee » January 15th, 2021, 1:22 am

You haven't told us what you won this month, PD.


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