Yep, that’s what we have😉
CPI is 0.8% in UK. So if your interest rate is between 0 and 1%, that’s what you’ve got.
I can’t help but wonder the same. Rules have changed significantly over last ten years of course but conspiracy theory abounds…
Back then you could get three times single or twice joint income for mortgages. Nowadays with lower rates I’ve heard of four times joint being offered. It only takes a mortgage to increase from 2% to 4% to cause real problems when gearing is so high. Negative rates could push people to buy housing, increasing prices further and making them even more unaffordable for those starting out. It’s amazing how things have changed.
Agreed. People might feel a rate increase of ‘only’ 1% is peanuts, but if it doubles someone’s debt expenditure, that could hurt. However, common sense would suggest they should have thought of that!
With a small sample size you can only make assumptions. So many people have looked into it and if it was anything other than random we’d know by now. For one person to win £1m a lot of people must get nothing. The chance of winning something is 1 in 34,500, so it’s easy to do the maths.
I’m certainly not implying that any anomaly is either deliberate or a fraud of some sort. The reality is very much more likely to be that statistically one does have winners and losers and that I just fall into the ‘unlucky’ camp, or much less likely that the winning number generating process is flawed resulting in some groups of bond numbers being inadvertently being disadvantaged,
No conspiracy theory to be found here!
I completely agree!
and I continue to hold some premium bonds despite my sour grapes.
Tbh, investment in sour grapes is potentially a decent move. The French do alright out of it…
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Note: I haven’t researched or fact checked this!
This is the article I mentioned - it explains things rather well. https://www.moneysavingexpert.com/savings/premium-bonds/
Thanks!
Although my degree is in pure maths, I did take statistics as one of my ancillary subjects (a very long time ago mind you) so I have always been fairly happy to accept (with just a hint of sour grapes) that my lack of success in respect of premium bond wins is down to statistics and bad luck.
I’m rubbish at maths, grade C at O level and then no more. I’m ok at statistics, though sought help from a maths prof when doing my research. My son got his maths degree last summer and the stuff he understands astounds me.
One of my nephews has a doctorate in maths, and despite my degree and mathematics background his thesis was completely gobbledygook to me.
Lols. I did maths up to A-level, gotta say most of it I’ve never had to use since (electronics does most of it for us now). When my daughter, an excellent mathematician, was taking GCSE it brought it all back for the first time since. Couldn’t help thinking how pointless it will likely be though.
More use perhaps from learning in maths how to apply it practically in life e.g. how to invest and borrow efficiently and effectively, how to put together an excel spreadsheet and how to buy a house!
Something I never learnt and still don’t know! I did find that it is possible to lose a substantial amount of money doing it wrong, costing me several times the value of my music system - and as a consequence I am very risk-averse with money.
I think the answer is to invest in assets that are very likely to outperform inflation. There is a reason why works of art command such high prices- they are safer stores of value than most investments and as JW links to above, wine is another option. The trouble with wine is that it is hard to derive pleasure from it without drinking it!
My personal solution is to invest in vintage motorcycles - I have the fun of restoring and riding them and, apart from a blip around 1990, they have consistently increased in value in real terms. Like every such investment you have to know what you are doing and fakers and forgers have been attracted to the market.
I am fortunate in that it has been my hobby for over 40 years - until fairly recently without any thought to its earning potential and thus I would, and do, back my knowledge with some confidence. It’s surprising how many bargains can be snapped up from dealers and auction houses who don’t know the true worth of what they are selling. Both a side hustle and a pleasure!
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I very much enjoy Henry Cole and his pals restorations on The Motorbike Show 
The Gold Star and Harley in recent years were terrific. Though not so keen on last year’s chopper…
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At the moment I’m getting 0.4% with RCI bank but I think that’s about to change. I’ve also opened a Virgin saver account which is 0.25% but a maximum of 250K. However, explain this please, the company I work for also has a Virgin saver account with the same terms, instant access etc…, and the company gets 0.4%. So domestic rate is 0.25% but business rate is 0.4% and this is ex tax in both cases.
Dare I say that’s because you don’t want to know. I would say nearly everyone doesn’t want to know. There’s no magical formula, just common sense and history.
Houses are a good investment. Usually. Individual stocks aren’t, unless you’re prepared to watch them and even then, they’re very risky. Wine doesn’t always appreciate and in fact can start to depreciate after a certain length of time. And it needs storing perfectly. Art can go up in value, but only the real expensive stuff. Usually, no one wants it and it’ll end up in a car boot sale when you’re dead.
I’ve put lots of stuff on this forum over the years. I’ve put my investments openly here, showed the results and updated the figures. Do it so maybe just one person could benefit. Does it get any responses? A few, then Bitcoin gets mentioned and I know I’m wasting my time.
I don’t think its because I don’t want to know - just sources of genuine reliable information and impartial advice are not easy to find, or maybe to recognise when it is good - I have certainly had poor and bad advice! I have read with interest several posts of yours over probably about the past year or so, and you did give a helpful responses to a couple of queries I had (not sure if I thanked you at the time - so thanks now!) I’m not sure I had been aware of your posts on investments etc previously. However, my losses from my hoped for better pension provision were some years ago, resulting in my delaying retirement to 7 years later than planned, and my consideration now is rather different, namely when I retire later this year how to provide best protection to capital I will then have beyond direct pension provision, being money intended for future needs.
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