Tax free tho
Premium Bonds - If you post to say how much you've won, please also say how much you have invested.
- Thread starter Feek
- Start date
Soldato
Cashed out yesterday. Fed up of getting £0.
True, but there comes a point where even if you pay tax on the interest above your threshold, you'd still be better off? I've not done the maths to find out exactly where though.
Even in a decent rate ISA a couple of grand wont get you much , so it would be the same with premium bonds,
you want to have over 30k in premium bonds to get consistent winnings most months with higher values.
Yes I agree. Been dabbling in some stocks instead but these tend to be longer term. The bonds were nice as instant access.
Still might as well keep some in there for the chance at that £1M!
I believe maths says that premium bonds are worse the less you hold.
Ie if you can't put at least 10k in you should just stick to isas
You only achieve near the headline rate as you get towards 50k
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Correct... It's not really worth bothering at all if you are putting less than 20k or more as the odds of winning anything at all really fall off a cliff the less you have invested.
Bang it into a isa or even a good standard savings account for a guaranteed consistent return.
Premium Bond Probability Calculator. Unique tool predicts what you'll win plus NEW 'luck test'
This free tool delves into the Premium Bond probability to reveal the real odds of winning based on the bonds you have. Plus tell it what you've won in the past and it shows whether you're Mr Luck or have had a black cat cross your path. Developed with help from post-doctoral probability...
www.moneysavingexpert.com
With 15k invested in PB for example, you can expect to win £500 per year with average luck...
Whereas a 4% savings account would yield a guaranteed £600 in a year from 15k....
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Correct... It's not really worth bothering at all if you are putting less than 20k or more as the odds of winning anything at all really fall off a cliff the less you have invested.
Bang it into a isa or even a good standard savings account for a guaranteed consistent return.
Premium Bond Probability Calculator. Unique tool predicts what you'll win plus NEW 'luck test'
This free tool delves into the Premium Bond probability to reveal the real odds of winning based on the bonds you have. Plus tell it what you've won in the past and it shows whether you're Mr Luck or have had a black cat cross your path. Developed with help from post-doctoral probability...
With 15k invested in PB for example, you can expect to win £500 per year with average luck...
Whereas a 4% savings account would yield a guaranteed £600 in a year from 15k....
The last 6 months for me have hit 500!
Which means I'm not going to win any more obviously!
I will be extracting in April and filling this tax years allowance.
Then adding into next year's too with what's left. As I'll be down to 8k by filling this year's from it.
Will be putting minimal savings into my isa next year though so no chance of maxing it next year
Man of Honour
- Joined
- 21 Nov 2004
- Posts
- 46,239
Correct... It's not really worth bothering at all if you are putting less than 20k or more as the odds of winning anything at all really fall off a cliff the less you have invested.
Bang it into a isa or even a good standard savings account for a guaranteed consistent return.
Premium Bond Probability Calculator. Unique tool predicts what you'll win plus NEW 'luck test'
This free tool delves into the Premium Bond probability to reveal the real odds of winning based on the bonds you have. Plus tell it what you've won in the past and it shows whether you're Mr Luck or have had a black cat cross your path. Developed with help from post-doctoral probability...
With 15k invested in PB for example, you can expect to win £500 per year with average luck...
Whereas a 4% savings account would yield a guaranteed £600 in a year from 15k....
I was pretty happy with my £100 and then £500 on about £10k. Haven’t won anything for two months since though! It’s all good fun though.
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Yeah.. I'm more than likely gonna pull 20k out of my 50k PB and put it in an s&s isa come April as I've already got 40k in a cash ISA
Yeah it's nice 'winning' on premium bonds but,
when you do the cold hard maths and extrapolate your 'winings' over 12 months... As a comparison of how much guaranteed interest you'd get it's not very appealing compared to even a competitive 'instant access' savings account or an ISA.
Depends entirely on your tax position. For basic rate people the savings accounts just about edge it, for others premium bonds are better. However the main reason people buy them is the chance of winning big, for guaranteed income they'd be better off elsewhere like low coupon gilts. Using ISA for cash is a total waste IMO!
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Man of Honour
- Joined
- 21 Nov 2004
- Posts
- 46,239
Definitely true for most people. I get hammered with tax though and already have a lot invested, so it’s just a bit of fun for me really, stops me wasting more money than I otherwise would on tat and instead chuck a bit more into them. I guess I’m still hovering on about an 8% return in 12 months.
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True, depends entirely on your tax position and future goals.
If your a basic rate tax payer it's quite possible it's more economical to pay tax on interest if you've already maxed out your ISA allowance for the year, or just whack it into a SIPP, for example... it really depends.
I guess what I'm trying to say it that it can be beneficial - afterall you can only hold a max of £50k in premium bonds anyway, above that you have to take the winnings which you can then either re-invest in 'something else', or just use it as a bit of pocket money... chasing the 1 million jackpot is the wrong way to look at it... you 'might' get very lucky, but equally you 'might' just as likely get eaten by a Crocodile...
If your a basic rate tax payer it's quite possible it's more economical to pay tax on interest if you've already maxed out your ISA allowance for the year, or just whack it into a SIPP, for example... it really depends.
I guess what I'm trying to say it that it can be beneficial - afterall you can only hold a max of £50k in premium bonds anyway, above that you have to take the winnings which you can then either re-invest in 'something else', or just use it as a bit of pocket money... chasing the 1 million jackpot is the wrong way to look at it... you 'might' get very lucky, but equally you 'might' just as likely get eaten by a Crocodile...
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