Premium Bonds - If you post to say how much you've won, please also say how much you have invested.

DJMK4 said:
Then yes i am a higher rate tax payer
I will have to find a calculator out there that calculates the tax
Click to expand...

As you're a high rate tax payer it'd probably be better to invest in an ISA then as, or only invest enough in the fixed savings account so you accrue no more than £500 interest.

1year fixed ISA is up at 5.2% now so it's not too shabby. As mentioned by others with both of these the amount invested must remain in the account until the end of the fixed year. If you need access to any money leave that in bonds.
 
Gixer said:
As you're a high rate tax payer it'd probably be better to invest in an ISA then as, or only invest enough in the fixed savings account so you accrue no more than £500 interest.

1year fixed ISA is up at 5.2% now so it's not too shabby. As mentioned by others with both of these the amount invested must remain in the account until the end of the fixed year. If you need access to any money leave that in bonds.
Click to expand...
Maybe

I don't really understand why they tax you on your savings based on what you earn from your job aswel.

The UK really don't like you making an income or look at any type of savings without swiping from you do they.
 
Last edited:
Just thinking. If you were putting in 10k of cash for 6 months, the interest isn't going to be great.

Would premium bonds be better?

A chance to win a chunk rather than a few quid?
 
Savings account is still better, unless you get lucky and win big on the bonds. 6 month fixed saving term is @ 5.34% with Allica bank, minimum 10k deposit.
 
The big win from premium bonds is their tax free status.

It means that individually you need to understand your own position in order to work out if they are worth having for you.

4% (from Aug) effective rate is equivalent to 5% for a basic tax payer who has £1k from saving interest and already has paid into an ISA, or 6.67% for a higher rate tax payer who has had £500 from savings and has paid into an ISA.

Clearly they are far likely to be far more beneficial to a higher rate tax payer who is also far more likely to be in the position they have already met the ISA and the cash interest in a single tax year.

Is it worth dropping a little interest for the chance to win more, for many yes. Its down to individual choice.
 
Mercenary Keyboard Warrior said:
The big win from premium bonds is their tax free status.

It means that individually you need to understand your own position in order to work out if they are worth having for you.

4% (from Aug) effective rate is equivalent to 5% for a basic tax payer who has £1k from saving interest and already has paid into an ISA, or 6.67% for a higher rate tax payer who has had £500 from savings and has paid into an ISA.

Clearly they are far likely to be far more beneficial to a higher rate tax payer who is also far more likely to be in the position they have already met the ISA and the cash interest in a single tax year.

Is it worth dropping a little interest for the chance to win more, for many yes. Its down to individual choice.
Click to expand...

For myself this particular tranche of money is going to be in and out within the tax year.
It will Probably eat up my tax allowance for the isa (I'm predicting 13k in and 13k out on cash) combined with my long term. S&S savings.


Its quite possible I will breach the 20k limit this year this way.


That's why I'm wondering about this gamble with the interest.

FYI.. I have also used up my 500 interest allowance too.
 
Last edited:
413x said:
For myself this particular tranche of money is going to be in and out within the tax year.
It will Probably eat up my tax allowance for the isa (I'm predicting 13k in and 13k out on cash) combined with my long term. S&S savings.


Its quite possible I will breach the 20k limit this year this way.


That's why I'm wondering about this gamble with the interest.

FYI.. I have also used up my 500 interest allowance too.
Click to expand...

Bear in mind if an ISA is flexible then you don't lose allowance by paying in and removing within the tax year.
You just cannot exceed £20k paid in net at any point that year.

Not all are flexible, but a good portion are now.
 
You must log in or register to reply here.
Back
Top Bottom