Statistically yes but earning 1% on low sums is hardly life changing in itself. It's also easy access.
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
The best equivalent savings accounts (instant access) are only just topping the 1.4% headline Premium bonds recently, now just started hitting 1.7% or so, but thats very recent.
When the base rate goes up the premium bonds prize fund follows generally (its pegged to that basically, but timing isn't identical)
Plus as has been said, they are tax free. So whilst we have very low interest rates many will be below the £1000 (its only £500 for higher rate tax payers and zero for highest) so its not a simple equation at all.
They are actually not bad for people who want some reasonably chunky liquid savings, especially if higher or highest rate tax payers, and may have income elsewhere using up the tax allowance or they do not have one.
When interest rates are higher the tax free status makes them quite a lot more attractive than simple savings accounts.
For some time they were notably higher than available in savings accounts especially if you didn't want to jump through hoops.
I have 10k in Premium Bonds. Won 4 x £25 over the past year. I do get excited every time the draw is announced.
I've got the same and have won sweet FA over the last year.
I was just trying to fit in.
You're not doing a very good job.
Last edited:
Soldato
Ftfy
Underboss
had mine 6 months, won 2x £25
better than the saving accounts in my book
i was looking around, and most i could have got at the time was like 1% interest unless i locked it away for 3+ years (which i didn't want to do at the moment)
put 10K into Premium bonds (started off about 3K though
better than the saving accounts in my book
i was looking around, and most i could have got at the time was like 1% interest unless i locked it away for 3+ years (which i didn't want to do at the moment)
put 10K into Premium bonds (started off about 3K though
Associate
- Joined
- 29 Oct 2019
- Posts
- 1,002
Not the case right now, 1.4% average return but that includes the big prizes, so more like 1.3% for someone with average luck. The best easy access savings account is 1.71%.
Wasn't it also very recent that premium bonds went up to 1.4%?
![[FnG]magnolia](/styles/overclockers/avatars/9.png){kind=avatar}
Caporegime
Just LOL if you can't imagine being the guy who came up with Premium Bonds and then further imagine his incredulity that anyone saw it as an investment opportunity rather than the stacked and verifiable loss it will certainly make in your wallet space, if you can even afford a wallet having gambled the little money you do have left on Premium Bonds.
Noobs.
e: God dammit Harold
Noobs.
e: God dammit Harold
Associate
I'm now gutted, first time not winning in 8 months
Sorry Feek but I'm due a win... I've got some somewhere though the winnings letters go to my old home address, I'm sure the notification of the 1 million prize is in the post now. 
That's iffy as they're capped at 50k so not really suitable for a large amount of cash from say a house sale or a will etc. It's worth pointing out perhaps that the deposit guarantee scheme the government offers for banks* is set up to deal with that sort of thing as it doesn't just offer general protection of up to 85K but also short-term (up to 6 months) protection of sums up to 1 million GBP if the large sum is specifically connected to certain life events like that.
*(and building societies and credit unions)
That's iffy as they're capped at 50k so not really suitable for a large amount of cash from say a house sale or a will etc. It's worth pointing out perhaps that the deposit guarantee scheme the government offers for banks* is set up to deal with that sort of thing as it doesn't just offer general protection of up to 85K but also short-term (up to 6 months) protection of sums up to 1 million GBP if the large sum is specifically connected to certain life events like that.
*(and building societies and credit unions)
NS&I offers more than Premium Bonds and they secure 100% of your savings, however much you invest and however long you invest it for.
You've got the full £50K in, haven't you?
Yep went up last month from 1%.
Soldato
Yep went up in June
But instant access savings accounts have been below for years, trust me I check it
I do however refuse to put my savings into dodgy banks so occasionally a decent rate is available i would refuse
BTW the 1.71 is also a restricted one, its virgin and you need a current account with them
The best unrestricted is 1.55%
Right now there is a push again to get rates up where as for years its been the opposite, trying to offer a lower rate so they don't attract too many funds