beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 35,328
i wouldnt put my life savings in them, but the way i see it, they're like buying a load of lottery tickets without the loss of the cash.
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Premium Bonds
- Thread starter poidy
- Start date
Marshy
Well-known member
Love them and have won big, I only had a few hundred when i won
Marshy
Well-known member
Oh and I can confirm a lady will visit you if you win a big amount, but they dont bring a cheque....they will want your bank details though ;-)
Hillian1
( . ) ( . )
Steve Foster
Well-known member
As an Independent Financial Adviser, we only recommend Premium Bonds in certain circumstances.
Firstly utilise your Cash ISA allowance of £5,760 in 2013/14 tax year. Then to invest the same into a stocks & shares ISA if seeking medium to longer term investment horizon or the full £11,520 into the stocks & shares ISA.
If you are near to age 55 years or older, consider a pension contribution. £10,000 into premium bonds & that is what is invested. £10,000 into a pension & £12,500 is invested. If you are a higher rate tax payer you will benefit from additional relief. You can place the fund in Cash if your capacity for risk is low & will benefit from gross roll up.
Premium bonds as has been mentioned will pay an average of 1.5% pa. So if your luck is 'average' based on £10,000 you will win £150.00 in a year. Nearly all the prizes are £25:00
Again the key attraction, is to higher rate tax payers. If you pay tax at 40% you will need to find an instant access account offering 2.5% gross to match PB - nigh impossible.
For non tax payers you will obtain more than 1.5% from a number of accounts.
As PB are readily accessible to encash, it is not comparable to compare to fixed term deposits which invariably incur penalties to close.
Hope this helps.
Firstly utilise your Cash ISA allowance of £5,760 in 2013/14 tax year. Then to invest the same into a stocks & shares ISA if seeking medium to longer term investment horizon or the full £11,520 into the stocks & shares ISA.
If you are near to age 55 years or older, consider a pension contribution. £10,000 into premium bonds & that is what is invested. £10,000 into a pension & £12,500 is invested. If you are a higher rate tax payer you will benefit from additional relief. You can place the fund in Cash if your capacity for risk is low & will benefit from gross roll up.
Premium bonds as has been mentioned will pay an average of 1.5% pa. So if your luck is 'average' based on £10,000 you will win £150.00 in a year. Nearly all the prizes are £25:00
Again the key attraction, is to higher rate tax payers. If you pay tax at 40% you will need to find an instant access account offering 2.5% gross to match PB - nigh impossible.
For non tax payers you will obtain more than 1.5% from a number of accounts.
As PB are readily accessible to encash, it is not comparable to compare to fixed term deposits which invariably incur penalties to close.
Hope this helps.
Marshy
Well-known member
Marshy, you're back.
A few weeks break is well worth it from time to time
Glad this has come up. Got an ISA that always gets topped up on new FY and got 2.5% from Santander for next 12 months. Got a bit in stocks and shares ISA. It not overly keen on lumping loads in even though I am on a very cautious product.
Have a few grand in a 1.5% savings account so might look to move this to PB for a bit to see what happens!
Have a few grand in a 1.5% savings account so might look to move this to PB for a bit to see what happens!
greyseagull
New member
?
Super Steve Earle
Well-known member
Blimey - don't let the FSA hear you are offering free financial advice without a proper factfind, attitude to risk analysis etc. I guess RDR passed you by then.
Marshy
Well-known member
Go for it people
Steve Foster
Well-known member
Lol, I am also the Compliance Officer, at our firm too.
Generic advice & not specific advice similar to that dished out in your Sunday newspapers is being given here, only.
Super Steve Earle
Well-known member
LOL indeed - only funning with you
Mackenzie
Old Brightonian
My mate has the maximum (£30k) he wins every other month on average.....
Marshy
Well-known member
LamieRobertson
Not awoke
Considering the miserable return available from banks/building societies PB aren't too bad a home for short term savings
IMHO
IMHO
LamieRobertson
Not awoke
Erm share! Lol
cloud
Well-known member
I have £3000 and have consistenly won £50-100 each year, so a return similar to what others have been getting
You look forward to the envelope from Scotland arriving on the 19th of the month ...
You look forward to the envelope from Scotland arriving on the 19th of the month ...