Financial Fiddling...

Solari

Solari

Solari

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Hrm, so I was thinking... my bonus rate runs out on my savings account shortly and am wondering whether it's worth just shoving a large proportion or just the lot into Premium Bonds?

Am I quite likely to do well out of say £25K worth?

The other idea I had was to get a few 0% on new purchases Credit cards, max them out and put the money on Premium Bonds or in High Interest savings... paying back the minumum each month and then the full balance on the month before the 0% deal expires, thereby profiting from winnings and/or interest.

It all sounds a bit too easy so am I missing something?
 
Solari said:
Hrm, so I was thinking... my bonus rate runs out on my savings account shortly and am wondering whether it's worth just shoving a large proportion or just the lot into Premium Bonds?

Am I quite likely to do well out of say £25K worth?

The other idea I had was to get a few 0% on new purchases Credit cards, max them out and put the money on Premium Bonds or in High Interest savings... paying back the minumum each month and then the full balance on the month before the 0% deal expires, thereby profiting from winnings and/or interest.

It all sounds a bit too easy so am I missing something?
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I thought that the 0% CC deals are for only transfers or new purchaces not cash advances? Also most (guessing) have a cash advance fee of 2.5% (well mine is anyway)
 
They work out best for high tax payers because any win/payout/interest is free of tax.

In theory that cc idea is great but I wouldnt do it personally. A balance transfer has like 5% cost (roughly what premium bonds pay out on average) and a cc cheque incurs interest immediately
 
[TW]Fox;10025281 said:
Premium Bonds is not really a great place to be investing. There are better products.
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Workmates seem to be doing well out of them, and seeing as they're tax free the returns seem ok. I need to be able to pull the cash out at short notice as well so it seems a reasonable idea to me. *shrug* And yes I am a higher rate taxpayer so my savings interest gets hammered :(

Thanks for the CC advice peeps :)
 
silversurfer said:
They work out best for high tax payers because any win/payout/interest is free of tax.

In theory that cc idea is great but I wouldnt do it personally. A balance transfer has like 5% cost (roughly what premium bonds pay out on average) and a cc cheque incurs interest immediately
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Not that well. My mother has the maximum amount allowable and adding up the figures got a pretty crap return over a year.
 
If I had some spare money after paying off mortgage etc, I'd go for Premium Bonds, tax free and you do seem to do OK out of them. I know it used to be that an individual could only invest 20K, not sure if that has changed.

Might be worth looking into Maxi ISA (7K), I good investment in one of those could earn you percentage wise more than you'll get from the premium bonds.

Don't think you can do the credit card thing, I believe the 0% is only valid on purchases rather than withdrawing the cash on the card and putting into a savings acct.
 
This was on money matters on Radio 4 and it depends if you are lucky or not. If you are above average lucky you should get a rate of about 4.6%. They do recommend that you should only be looking to put in about £5000 though.
 
Moses99p said:
I thought that with premium bonds the odds were you'd just get the same as if you put it in the bank, are you lucky?
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I'm lucky if I win an argument, and am crap at Fruit Machines and the like... so in short, the answer is probably no :)
 
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