Machpoint005

That includes the ERG and most of the Tory back-benchers at present, then! Artesian economics presumably says that there is an inexhaustible money supply!

That depends on whether or not you are a Keynesian, doesn't it?

Or free from the skip at your local tin-bashers? Or steel angle section?

Yes - it has been much the same for me, and for the Memsahib. As far as I know you cann't get a better return anywhere, with that level of security. Bank "savings account" interest rates have been derisory of late (and they have recently decreased). Several thousands, probably, but the bigger the better.

But the arithmetic shows that provided you have a big enough stake, that's an unlikely outcome. Inflation is far less of an issue than historically low interest rates at the moment.

I'm not questioning your arithmetic, but if you are buying bonds in batches of 100 the odds are better by a factor of 100 because it doesn't matter which of the hundred actually wins. You are, however, omitting one more important point - with Premium Bonds, whether you win or not, you always get your stake back. you are right to regard it as an investment more than a gamble. Heads you probably win, tails you don't lose, that's the true picture!