Just a quick post before the weekend after a blur of a week.
Recently, M from There’s Value
mentioned in a comment that she had no idea why people buy premium bonds and why not just stick the money in my ISA?
I replied that premium bonds were my equivalent of sticking cash under my mattress, readily available, (and getting eroded by inflation, I know…) but with a chance of ‘winning’ something.
Anyway, this morning I got this email (slightly adjusted for blog purposes):
Woohoo! First time I’ve won in years!
Ok, so I only won £50 which represents a 3.1% gain on my ‘investment’.
Hardly worth the bother perhaps, considering I got 0% the past few years.
MoneySavingExpert has done a good piece on the pros and cons of premium bonds here
. The cons appear to outweigh the pros but the main thing is to be aware that premium bonds are more for ‘fun’ than ‘returns’ and yes, I’m aware!
The £50 will now be chucked into the pot to be invested ‘properly’.
Have a good weekend all!