I just converted half of my useless ISA into Premium bonds (today) so I can join this party. When can I first expect to be disappointed?
So I wasn’t too disappointed on my first ever prize draw. 2x£25. Not bad and have already outperformed my ISA for the year. Those dreams of retirement will have to wait, though!
What sort of return in % are you seeing each year, I’m wondering how it compares to a regular 0.5% savings account, as far as I understand it doesn’t match that (on average) until you’ve 20 or 30 grand in the pot.
What sort of return in % are you seeing each year, I’m wondering how it compares to a regular 0.5% savings account, as far as I understand it doesn’t match that (on average) until you’ve 20 or 30 grand in the pot.
This link on MSE explains it well but in short Premium Bonds are not likely to generate any interest for people with small investments. You need to be chucking 10K plus at them, and even then only do it as part of a broader investment portfolio.
I keep looking at PBs, I have my savings split between a savings account (0.5%) and a managed ethical investment ISA, the savings account is what I think of as emergency money but inflation is slowly eating it while the ISA is doing great at (currently) over 27% up after 3 years (33% time adjusted).
£75 for me this month. had £25 last month, but nothing for a few months beforehand. thought I’d be out of the game properly having paid for a chunk of an extension out of them earlier this year, but £100 in the past 2 months from the rest of my holdings isn’t terrible… pays for my flights to see my missus anyway!
£50 for me and £25 for the other half. Which is a bit of an improvement on the last couple of months.
@matt303uk – works out at exactly 0.5% return for the year so far (i.e. the 9 draws from Jan to Sep) and that’s on the max amount each for two people. So maybe 0.75% for the year as a whole, give or take a bit, if it carries on like that. It’s not exactly a brilliant return, but it’s ‘steady’ and safe I suppose.
I’m running at about 0.8% over the last 12 months, on what most folk would probably consider a healthy pot. At that rate, taking inflation into account, my pot is in effect dwindling. It’s earmarked for house improvements over the next 5 years or so – I maybe need to speed up the DIY to get the most out of my money!
What sort of return in % are you seeing each year, I’m wondering how it compares to a regular 0.5% savings account, as far as I understand it doesn’t match that (on average) until you’ve 20 or 30 grand in the pot.
About 10% over eighteen months, so 6ish% per year
I have around £2k of my own money in there and around £13.5k of interest-free money borrowed from credit cards (was higher but had to cash some in when one of the cards reached the end of it’s 0% intro offer) and I’ve won eight lots of £25 so far.
£200 from having £2k tied up isn’t bad.
If you can borrow interest free it makes a lot of sense, possible decent return and zero risk to pay back the capital when you need to.
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Average return should be 1%, but mostly that will be nothing with the odd big one skewing the average. I expect £25 every two months on mine, just had it two months in a row after nothing for a while
3 months in after investing near maximum. I’ve done a spreadsheet to track progress and so far I’m on for 1.97% return on current run rate. I expect this figure to tail off as we go through the months.
I have around £2k of my own money in there and around £13.5k of interest-free money borrowed from credit cards (was higher but had to cash some in when one of the cards reached the end of it’s 0% intro offer) and I’ve won eight lots of £25 so far.
I thought you always accrued interest if you took cash out on a credit card, I’ve seen 0% on purchase but this is different I think. Am I missing something?
