Investment & Investing

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NickCJ in reply to @Tenderloin

I've had 30k in premium bonds for 9m and am so far earning 2.5% on that

I think you have had pretty good luck there. The "prize rate", i.e. the actuarial expected rate of return, is 1.4%, but would likely be lower on £10k as you say. Still probably equivalent to north of 2% in a bank account though given you pay tax on interest but not on PB prizes.

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Sharkstar in reply to @NickCJ

I remember reading a breakdown of how they get to the actuarial rate, based on the concept of “average luck,” which I found quite compelling. As my mother used to say, “You never know your luck in a raffle.”

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