Originally posted by divegeester
In the UK we have treasury backed premium bonds: http://www.nsandi.com/savings-premium-bonds
Whilst there is contention about the return on such investments, for example:
...I wondered if any people here banked in this type of "investment" with the chance of ...[text shortened]... tually worth the cost of the interest you would have earned in a regular account.
The odds of winning a life changing sum are remote - close enough to zero to be zero.
Traditionally, with enough bonds, the regular small prizes offered a sensible rate of interest all the same. The current rate of interest is, however, unfairly low and investors are, to my mind, being taken for a ride. I know this has to be taken in the context that many high street savings accounts are offering far less than 1%.
When I was paying a mortgage and borrowing to survive with my young family, interests rates were abominably high. In the Eighties, they would add a hundred pounds to the monthly mortgage payments without apology and without asking where I was expected to find that money. Now that I am debt free and retired with very modest savings, guess what, interest rates are next to zero.