Premium Bonds Versus National Lottery

Premium Bonds are like playing the National Lottery without the risks. Certainly I would be maintaining my capital and in with a chance of a prize.

Are Premium Bonds A Good Investment Times Money Mentor

At present it is issued by the governments National Savings and Investments agency.

Premium bonds versus national lottery. Lottery bonds are a type of government bond in which some randomly selected bonds within the issue are redeemed at a higher value than the face value of the bond. With Premium Bonds the chances of winning any prize are one in 240 provided that. In fact you stand a better chance of winning 1million.

Premium bonds are a product offered by the government through nsi national savings nsi say the odds of winning per 1 unit are 24500 to 1. In fact there is a one in 45m chance of winning the lottery while the average return on Premium Bonds is 14 at the present time. Undoubtedly entrants participating in both draws do so for thrill and the lucrative prize money on offer.

Outwardly lottery bonds resemble ordinary fixed rate bonds. Theres nothing wrong with Premium Bonds as a way of saving. However up to 90 of the 3m prizes given out by the NSI each month are for less than 500.

If you look only at your chances of winning the 1m top prize then the odds are far worse than if you play the National Lottery. The news that National Savings Investments NSI is reducing the prize fund rate for Premium Bonds to 13 per cent is enough to make you wonder whether youd be better off playing the lottery. This compares favourably with Britains best-loved savings lottery NSIs Premium Bonds which handed out 71 prizes of 10000 in this months draw although it was choosing from a far larger.

And smaller prizes can accumulate to build your pot and increase your odds. While for Premium Bonds there is just a 100 minimum deposit. However a win on the premium bonds means at least 25 whereas a lottery win could just be just 2.

They have a fixed though usually long duration and either pay no interest or regular coupons. Believe it or not the lottery has a higher probability of winning big than Premium bonds do if you play with the interest that youd earn on your bond value in a savings account. At 200 a line our generated interest would equate to 25 tickets for the lottery.

If you were happy to play just once a month you could fund that with less than 1000 at 15. If you dont win you still get your original money back. The principle behind Premium Bonds is that rather than the stake being gambled as in a usual lottery it is the interest on the bonds that is distributed by a lottery.

Every premium bond you hold has an equal chance of winning a prize so the more you buy the better your odds. But you do have more chance of winning on the National Lottery. Suppose I invest the equivalent of the 1 interest each week in the National Lottery.

Of course though the more bonds. Would I be better of than with Premium Bonds. The lower value prizes are those which are up to 100 in value.

They make up 998 of the number of prizes available - so are by far the most likely category for most people to get in to. If you play the National Lottery each week you have probably spent a small fortune over the years compared to your winnings so now is the time to consider Premium Bonds. However the best standard savings account has an overall higher expected prize than either Premium Bonds or the Lottery so personally Id avoid both like the plague.

A type of government bond issued in the United Kingdom by National Savings and Investment NSI that gives the holder a chance. The bonds are entered in a monthly prize draw and the government. Now to calculate the expected return on the bonds the February prize pool of 544e6 is calculated from 15 interest on.

The overall odds of winning a prize on the lottery are 1 in 93 which eclipse the chances on premium bonds which are 1 in 30000. Better than Premium Bonds - how to play the National Lottery and never lose any money. So lets invest a theoretical 10000 in premium bonds.

Lottery bonds have been issued by public authorities in Belgium Ireland Pakistan Sweden New Zealand the UK and other nations. The overall odds of winning a prize on the lottery are 1 in 93 which eclipse the chances on premium bonds which are 1 in 30000. While the chance of winning a substantial prize is higher than the chance of winning big on the National Lottery there is always a chance.

If you look at this page on the NSI site you can see some interesting things about Premium Bonds. Then the thought struck me. If you hold 10000 or more in premium bonds your chances of winning at least one prize over 12 months are 9999.

Your chance of winning the jackpot per ticket on the National Lottery is one in 45 million in a week far outstripping the one in more than 56 BILLION chance of becoming a millionaire through one single Premium Bond in a month. Now you probably know the maths but dont like thinking about it. A Premium Bond is a lottery bond issued by the United Kingdom government since 1956.

We would have a 1 in 1802299 chance of scooping the jackpot and a 1 in 400000 chance of becoming a millionaire. Meanwhile the odds of winning the major 1m prize with Premium Bonds is a staggering 1 in 40bn per bond that makes the National Lottery odds look good which says how poor the odds are. Generally high interest bonds trade at a premium when interest rates go down while low premium vs.

If you play the National Lottery each week you have probably spent a small fortune over the years compared to your winnings so now is the time to consider Premium Bonds. The chances of any given bond winning the. If you spend 2 per draw per week on the National Lottery thats 208 per year.

Premium bonds are government issued lottery bonds administered and issued by national savings.

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Premium Bonds Vs The National Lottery Which Is A Better Investment

Are Premium Bonds A Good Investment Times Money Mentor

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