Ribble Valley MP's call for lower bonds (From Lancashire Telegraph)
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Ribble Valley MP's call for lower bonds
2:05pm Wednesday 31st October 2012 in News
RIBBLE Valley MP Nigel Evans is calling for the minimum purchase for premium bonds to be reduced from £100 to £25 to encourage families to provide a savings platform for their children.
He said the current economic climate meant that young people were finding it difficult to save for the future.
He said: “Premium bonds are a safe and productive way of saving money and they represent a great opportunity for parents and grandparents to put money aside for their children and grandchildren for whom it is incredibly difficult to build savings.”
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Comments (1)
4:09pm Wed 31 Oct 12
Kevin, Colne says...
The interest is allocated randomly by chance and this randomly generated interest payment, which should be called the rangip, is labelled a ‘win’. It is, of course, nothing of the sort.
Now, one can always cash the bond and get your ‘stake’ back. Good luck, with that. My grandparents bought me a Premium Bond over a half a century ago, which hasn’t paid a bean. Now it’s true that it could have paid £1m, but the chances of this are 1 in 44,068,899,080. When my grandparents purchased the £1 Premium Bond you could 80 bags of crisps for a Pound, today if the Bond was cashed they’d be able to buy 2 bags of crisps; and quite possibly the bags would be smaller.
I agree with Nigel Evans that young people are finding it difficult to save for the future but this is hardly surprising given the progress of technology, the latest wave of globalisation and the current economic crisis.
It’s a terrible shame that we have members of parliament who are adding to our befuddlement on money matters by encouraging people to ‘save’ by loaning money to the government for, on average, a pittance. We need members of parliament that can see through the hype, cant, hypocrisy, spin and outright deceit of the savings and investment industry and who will speak-out in clear terms to help guide people towards institutions and products that have a real prospect of producing an adequate return.