From: Ronald Raygun 
Subject: Re: premium bonds, yay or nay ?
Newsgroups: uk.finance
Date: Thu, 01 Sep 2005 09:47:04 GMT

Tim wrote:

> "Tiddy Ogg" wrote
>> Exactly, which in low inflation times is a fair
>> compensation.  Study the odds of wining the lottery.
> 
> I have - very similar odds for winning the jackpot for the same money
> "spent" either way (ie **interest lost** by buying premium bonds, or
> **ticket price** for lottery).

Really?  Does your "interest lost" figure make allowances for the
"interest earned" from small PB prizes, bearing in mind they're
tax free?  Isn't received wisdom that -at least for higher rate
taxpayers- expected winnings from PBs are broadly equivalent to
net-of-tax interest from a typical savings account?