Got some money sitting in an account getting a massive .5% interest, may need it quick smart which is why it isn’t tied up in an ISA. Are premium bonds worth a punt?

Coke and hookers not an option this time

Depends how much. I don’t think they’re that good a return.
They don’t ‘count’ for a month after you’ve put them in, also not sure how quick you get the cash when you withdraw again.

How ‘quick’ do you need? I’d set up a RateSetter account or similar and lend out in monthly chunks, get around 3% no problem.

work for some , not for others. Ive had a 17% return on them this year – i was due some luck after the year I’ve had 🙁

most years i get circa 1%

If you’ve tens of thousands in them then they’re just about worth it. I used to get cheques albeit £25 every month when I had them.

They can be a pain when you need to withdraw them or heaven forbid you forget your password – they use snail mail to reset this.

thats changed now twix hunter – you can actually reset it online now – the trick is to realise you have forgotten it and do the reset BEFORE you enter it wrong too many times and lock your self out !

I have a few quid in them as my emergency fund. They’re pretty liquid; you can withdraw money within a week, which often isn’t the case with high interest accounts. I’m winning two or three £25s a month, though last month I dared to dream of the “big one” and got nowt.
As said, you won’t be eligible for next month’s (1st Nov) draw as you need to hold them for a month first…

They’re tax free, so won’t affect tax credits etc if that’s relevant, and they’re safe.

Full amount is advised if you want a return like savings, and even then you may just be unlucky.

I’ve only had a small amount in them for most my life. Finally got a £25 and then a few months later another. Then nothing.

Most of my savings are elsewhere, generally fixed rate ISAs though I must get round to shifting them about as each expires. Still not a great return. I have one in stocks & shares but I should have cashed it in at peak, all gone down again. Still it’s had the biggest return having doubled the investment, but that’s taken 20 years!

Housing on the other hand 😉

PBs are just a mechanism whereby the govt borrows from Joe Public at well below the rate it would have to pay in the bond market. The average rate they pay isn’t remotely competitive, but folk get distracted by the chance to “win” £1m, however infinitesimally small that may be.

There are bank accounts out there that pay 5% (gross), and monthly saver accounts that pay 6% (gross)

I just see it as a monthly direct debit into a “savings” plan with a tax free savings opportunity which also is a cheap way of entering a lottery.

I choose to have my winnings paid back into the account, and don’t intend to touch it unless I’m desparate for the balance, I win enough to use it to pay the mortgage or as a handy lump sum at retirement.

I think I’ve a 1.5% return so far, which isn’t massively far off a bank account savings plan once you paid the tax on your interest.

There are bank accounts out there that pay 5% (gross), and monthly saver accounts that pay 6% (gross)

Any links?
I’d be fascinated!

http://www.moneysavingexpert.com/banking/

Read the small print very carefully.

The odds of winning a million with premium bonds is 27.3 billion to one!

The odds of winning a million with premium bonds is 27.3 billion to one!

Except that’s for any one draw, for any one Premium Bond. If you have £50,000 Premium Bonds and taking into account the 12 draws a year, the odds are 45,500 to 1. Still unlikely but a heck of a lot more likely than winning the lottery; and unlike the lottery you can sell your ticket (Premium Bond).

I invested £2000 about 16 years ago and set it up to re-invest any small prizes.

Fast forward to today and it has grown to £2,850 which works out at about 2% interest.

I did not win anything for the first five years then won quite a few including one £100 prize.

Even though I think I have done ok compared to other people I have spoken too I would have done better paying the money off my mortgage

Well…
my offset mortgage account ‘saves’ me a few %age of mortgage interest.

So here’s a deal.
You send me the money – i’ll stick it in my offset account, and we’ll go halves on the savings I make – 1.25% each…..
Can have it back whenever you want.

DrP

(In all seriousness, this isn’t that crazy an approach and one I should speak to close friends about!)

I had a reasonable amount in them for about 8 years. I won next to nothing, far less than the average ‘interest’ you are supposed to get. Personally, I’d avoid.