Premium Bonds Question?

I was told that once you reach the maximum investment of 拢30,000
the rate of return is better than most financial institutions. Is this true and what if I invested 拢10,000 which is my life savings ??

It depends....

The most you will get from the Bank for your 拢10,000 is approx 5% (ie: 拢500 a year). The return from Premium Bonds is more difficult to forecast. In theory your chance of winning each prize is equivalent to your investment divided by the total invested in premium bonds.

Over the long term your return will be approx equivalent to the average. I haven't checked the figures but I think it's unlikely to be more than 5%. Over the short term your returns will vary more widely. Each month you have a small chance of winning 拢1 million. It is unlikely to happen but it is a possibility. Obviously if you win one of the big prizes your rate of return on your 拢10,000 will be significantly higher than you would have got from the bank.

10000

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