we had the same concerns about a young kid winning a big prize when my father wanted to buy our kids a few,we solved it by putting the bonds in my name...theyve never won anything.
we put 30k in the wifes name a few years ago , banked 6x 25 yesterday, we get summit most months. got to be better than an isa.
Rock bottom is the firm foundation i rebuilt my life on. J k Rowling
What we may do is put any winnings into more bonds but haven't decided yet.
The average return on premium bonds is 1.4%. This being less than inflation, in real terms investing in them means a loss every year. As others have said, they are really just fun with the possibility of a big win. In the long term many investments offer a better return, but many will also involve risk and short term losses. A simple FTSE 100 tracker would have returned 5.7% pa over the past 10 years, with an FTSE 250 tracker doing even better, and both beating inflation. By investing through ISAs up to £20000 pa tax can be avoided, as with premium bonds.
Can you really make 10% a year from the FTSE 100? | The Motley Fool UK
All the shareholders of those companies got richer, albeit gradually, not just the lucky ones.
I always say,
some poor devil,
has to win a million pounds every month !
Can you buy them for the grand children but nominate the winnings to go into your bank account ?
Few years ago my accountant told me to put any spare money into premium bonds as it was best , risk free , return . I was guaranteed a prize every month . The prizes were changed and the guaranteed return stopped .
I'm sure I could do better but still getting 3% [last 2 years] . Pretty sure biggie coming my way early January !
Premium bonds for Birthday
Cash for Xmas
Or other way round..
If you drip feed them cash at other times
Go premium bonds for both
Also what do they get from others ?
Games are a waste but activity experiences and even films (with a few mates) are better
I give cash to my niece for her 3 children as I know she uses it sensibly
In the past I have received vouchers for this that and the other.. ALL seems good except you have to spend on travel or other to use the vouchers.
So a few have gone to the "Recycle Bin"
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