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Premium bond prize rate to be cut to 1.3%


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https://www.ons.gov.uk/economy/inflationandpriceindices

The Office for National Statistics puts the UK inflation rate at 1.8%. Experience tells me it is much higher than this but even using their statistics, the prize for Premium Bonds is less than inflation. So the real interest rate on these bonds is negative.

Always cast your vote - Spoil your ballot slip. Put 'Spoilt Ballot - I do not consent.' These votes are counted. If you do not do this you are consenting to the tyranny. None of them are fit for purpose. 
A tyranny relies on propaganda and force. Once the propaganda fails all that's left is force.

COVID-19 is a cover story for the collapsing economy. Green Energy isn't Green and it isn't Renewable.

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OMG the forum is a gamblers' den.
The woman nearest the front is especially interest.

Deal Of The Day: Peaky Blinders Immersive Experience ...

Always cast your vote - Spoil your ballot slip. Put 'Spoilt Ballot - I do not consent.' These votes are counted. If you do not do this you are consenting to the tyranny. None of them are fit for purpose. 
A tyranny relies on propaganda and force. Once the propaganda fails all that's left is force.

COVID-19 is a cover story for the collapsing economy. Green Energy isn't Green and it isn't Renewable.

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I stopped preemies a few years ago. Get a much better rate or return on ETF’s. I might not win a million quid, but I’ve certainly made a bigger gain this month than a couple of £25 pay outs! 

💷 💷 Check out my Wanted adds and message me direct if you can help 💷 💷 

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  • 3 weeks later...

My late father bought me £25 premium bonds when I was born in 1978. Couple of years ago my mum remember the story and I track them down and updated contact details. To my surprise in forty years they had won nothing and still worth £25. Keep them because we’re a present to celebrate my birth.

40 years god knows how much it has lost in terms of purchasing power if I was taking a guess over 80%.

Done some research below

https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator

 

AA245F0D-F751-410D-89EE-797BEEF589B3.png

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  • 2 weeks later...
On 19/03/2020 at 06:00, Abyss said:

My late father bought me £25 premium bonds when I was born in 1978. Couple of years ago my mum remember the story and I track them down and updated contact details. To my surprise in forty years they had won nothing and still worth £25. Keep them because we’re a present to celebrate my birth.

40 years god knows how much it has lost in terms of purchasing power if I was taking a guess over 80%.

Done some research below

https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator

 

AA245F0D-F751-410D-89EE-797BEEF589B3.png

Average house price in 1978 in UK was 15261 pounds, 25 pounds is 0.1638%  in 2019 it was 215333 and 25 is 0.0116% so in this case it is worth 14,2 times less than in 1978, something to think about official inflation.

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I have the max, i win most months but nothing big I’m averaging 1.6% return. To be honest i just see them as cash with the added bonus of being able to win something and loose nothing (other than purchasing power!) - but thats why i also have gold. For me it’s all part of diversification and SAFE cash should be part of that - in times like these I’m glad i have it as theres always a risk of losing money with any investment.

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  • 3 weeks later...

The prize rate has been held for the time being at 1.4% and will not be dropped in May to encourage saving to bolster the public purse, according to an article in the papers today. 

IMG_20200418_072035.jpg

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55 minutes ago, JunkBond said:

Great news @MickB, I put £7k in during March so will be eligible for the May draw. 🤞

But I never win things. 😂

I put in £500 yesterday and haven't had a sniff of a win in years but I'm hoping my luck will change 😁

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  • 5 months later...
  • 1 month later...

Article in the Times saying rates may be cut further and products slashed after investments have surpassed the forecast of £35 billion for the year. This is on top of the rate cut starting in November. I wonder if they'll cut the amount that could be invested in premium bonds?

https://www.thetimes.co.uk/article/ns-i-may-cut-rates-again-after-savers-pour-in-cash-q0jsfptc8

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On 19/03/2020 at 06:00, Abyss said:

My late father bought me £25 premium bonds when I was born in 1978. Couple of years ago my mum remember the story and I track them down and updated contact details. To my surprise in forty years they had won nothing and still worth £25. Keep them because we’re a present to celebrate my birth.

40 years god knows how much it has lost in terms of purchasing power if I was taking a guess over 80%.

Done some research below

https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator

 

AA245F0D-F751-410D-89EE-797BEEF589B3.png

Now if your father had invested £25 in gold he could have bought 1/4oz in 1978 (spot price 22nd June 1978 was £100/oz). That would be worth £360 today, beating the BoE inflation calculation of £144.51 by a mile.

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