Premium bonds

[staffsblue]

£125 for me this month after nothing last month.

 

[bluesince76]

Hi all looking to invest £5k in Premium Bonds, have no idea idea where to start or which is the best product. Any advice wound be great.

A pretty bad investment, as they generally pay out less than you can get from a bank, although there's no tax. You won't lose the money, but they generally don't keep up with inflation either, so longer term you'd see the value of the holding decline unless you get one of the bigger payouts. Good for an emergency fund or short term cash holding e.g. a house deposit you'd need in the next year and a better gambling choice than the lottery, as at least your stake is still available.

If you want to get some, Google premium bonds or National Savings and Investments. You just register online and pay money into them direct from a bank

 

[flook]

I'd disagree there, I'm getting 4.6% return on my holding over the past 12 months, tax free obviously, so equivalent to over 5.5% in a easy access account, doubt you would find that very easily at a bank.

Different of course if you are prepared to lock the money away for a year or two, or take a risk on the stock market

 

[JASR]

I'd disagree there, I'm getting 4.6% return on my holding over the past 12 months, tax free obviously, so equivalent to over 5.5% in a easy access account, doubt you would find that very easily at a bank.

Different of course if you are prepared to lock the money away for a year or two, or take a risk on the stock market

Got zero this month, as did Mrs JASR - which was a 1st.
I have a spreadsheet with total winnings acRoss all time, and the total period of being held to give a return %.
It’s about 1.5% after 4.5 years. Ie for a year it’s 1.5%

There are many bank/bs saving Or current accounts that have given more interest over the past year. I even have a regular saver at 9%, only £50 a month though…
The last decent bank account(instant access) I got was Ulster bank at 5.2%.
There are many accounts with limited access that give 6-7%

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

 

[flook]

Got zero this month, as did Mrs JASR - which was a 1st.
I have a spreadsheet with total winnings acRoss all time, and the total period of being held to give a return %.
It’s about 1.5% after 4.5 years. Ie for a year it’s 1.5%

There are many bank/bs saving Or current accounts that have given more interest over the past year. I even have a regular saver at 9%, only £50 a month though…
The last decent bank account(instant access) I got was Ulster bank at 5.2%.
There are many accounts with limited access that give 6-7%

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

I did stress my comparison to instant access accounts.

That said your return is awful :/ my spreadsheet is a rolling 12 month programme which allows a like for like comparison with current interest rates. 2 years ago, 1.5% would have been a decent return, it's all relative.

As an aside, all those very high interest accounts are limited to 12 months of monthly low deposits, meaning they're not as good as they look. You only get the full percentage quoted on the first months deposit, 11/12ths on the second month etc

 

[JASR]

As an aside, all those very high interest accounts are limited to 12 months of monthly low deposits, meaning they're not as good as they look. You only get the full percentage quoted on the first months deposit, 11/12ths on the second month etc

Yes, I know that, but for the 11/12 10/12 9/12 etc period of the savings ‘working’ it is earning that rate divided by the 1/12 x months. Which is the same equivalent as any savings earning for a period < year.
The period money would be ‘working’ in other accounts for their remaining ‘year’, prior to being added to that account.

The only issue with regular savings accounts is that people assume the headline rate is for the whole amount put in regularly across the period, so they do simple maths and then are disappointed/complain it doesn’t match their expectation.

 

[flook]

Yes, I know that, but for the 11/12 10/12 9/12 etc period of the savings ‘working’ it is earning that rate divided by the 1/12 x months. Which is the same equivalent as any savings earning for a period < year.
The period money would be ‘working’ in other accounts for their remaining ‘year’, prior to being added to that account.

its not the same if you have a lump sum to invest rather than a monthly drip feed. In this instance, going off my experience, PB's are a reasonable choice as my return is better than an easy access account

 

[Nethermoor]

My cousin has just won 100k.

I have 0 clue how many he has etc. Mum text this morning to tell me.

 

[denislawsbackheel]

Me £50
Mrs £100
This morning.

 

[denislawsbackheel]

Hi all looking to invest £5k in Premium Bonds, have no idea idea where to start or which is the best product. Any advice wound be great.

Stocks and shares ISA or fixed cash ISA first.
Premium bonds are for when you’ve maxed out all your interest free savings/investments and are up to your tax free saving limit elsewhere.