Investing UK pounds

[ramot]

Yes I had, but I cannot, even with my UK HSBC bank, as a non-resident, open up any new savings account so my money is earning for all intents and purposes ZERO. So even if I do not win on the premium bonds I have not lost anything but definitely have a chance of some gain.

 

We seem to have a moderate win most months, still hoping for a big one! so balanced against any other savings interest in UK probably no better or worse. I don't know if it's true, but was told once to buy in 2,000 pound lots rather than larger amounts, gives a better chance of winning the odd 25 pounds!!? Who knows.

[Fisher1]

We seem to have a moderate win most months, still hoping for a big one! so balanced against any other savings interest in UK probably no better or worse. I don't know if it's true, but was told once to buy in 2,000 pound lots rather than larger amounts, gives a better chance of winning the odd 25 pounds!!? Who knows.

 

I read somewhere that the prizes given average out to about 1.5% interest, but of course there are people who never get a prize. There's an electronic calculator online that tells you your chance of winning and the likely amount, according to how much you have invested and over what period of time. THe way I see it, no gambling set up ever gives you your money back, interest is so low you might as well stick your money under the bed in a biscuit tin, and with premium bonds you stand at least a chance of a big win! A no brainier really.

[winter1]

You may already have seen this but it is still interesting.

 

http://www.moneysavingexpert.com/savings/premium-bonds-calculator/#result

 

This is a link to the Premium bond winning calculator that Fisher1 quoted.

Edited August 19, 2016 by winter1

[Ken]

Is that gambling like Th Pools ?

 

It is gambling but it's only the interest that you're gambling with. The capital sum remains secure. You could of course just keep your money in an interest bearing account and buy lottery tickets with the interest. The return is probably about the same.

[cluster1301]

OK, let's look at it over a 2 year period

 

 

If I bring the £20000 over now at 1.75 then I get $35000. Pay that into the mortgage at 4%, for 2 years thats a saving of (35000*.04*2)=$2800 (forget compound interest for now as it's only 2 years)

 

 

 

 

If I leave it in the UK and can get 2% after tax, thats (20000*.02*2)=800

 

 

So after 2 years I have £20,800 and need to convert that into $37800 to 'break even' on the deal - thats a rate of $1.82.

 

 

If the rate goes up to 2.00 to 1, then I have $41,600 - a 'profit' of $3800

 

 

Even if I get zero interest in the UK then a rate of 1.89 would see me break even.

 

 

So if I'm betting on the pound bouncing back (which I am) it doesn't have to bounce very far to make holding out worthwhile. Again, I accept that I haven't got a crystal ball, and there's no guarantee that it will come back. But it will

I think your maths are out a little here.

When you pay 35k off you oz mortgage. It isn't just the interest for the 2 years you save. Unless you reduce your monthly payments for the next 2 years you are also reducing the principle sum at a faster rate. So reducing the interest repayments even further.

 

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[Marisawright]

Maybe, I've been enjoying 15% for the past 9 months, lets see how long it lasts,

 

The question is not how long it lasts, it's whether you get your money back at the end...

[mxh]

I think your maths are out a little here.

When you pay 35k off you oz mortgage. It isn't just the interest for the 2 years you save. Unless you reduce your monthly payments for the next 2 years you are also reducing the principle sum at a faster rate. So reducing the interest repayments even further.

 

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Yes, that's correct - but as it's only for 2 years the effect of this will be minimal, but will increase over time. Hence why I said in my post "forget compound interest for now as it's only 2 years"