[Finance] Premium Bonds - prize pool increased again - you ever have any luck?

[Blue&WhiteSea]

Quick question..

Can you put 20k in an isa each year. So in 5 years time have £100000 in isas?

Yes, although I'd hope you'd have more than £100k after some sort of return on the initial investment!

 

[dazzer6666]

I tried to keep it fairly simple to illustrate the point of how poor premium bond returns are over long periods of time.

I'm not advocating everyone throw every spare penny they have into investments but i think premium bonds and cash savings accounts are a poor choice for any long term investment.

If you look at risk more generically in terms of the risk of your money not having the same spending power in future rather than purely in terms of volatility then savings accounts and premium bonds are actually higher risk for long term investments.

I'm also kind of assuming anyone who has maxed out on premium bonds already has an emergency fund to cope with anything that requires immediate access to funds

Personally don’t think they are necessarily a poor choice, for example, within a balanced portfolio, particularly for a higher/top rate taxpayer. Tax free return, 100% safe and almost instantly accessible with the slight chance of a very good return.

 

[Blue&WhiteSea]

Personally don’t think they are necessarily a poor choice, for example, within a balanced portfolio, particularly for a higher/top rate taxpayer. Tax free return, 100% safe and almost instantly accessible with the slight chance of a very good return.

I guess tax free returns might be a positive for someone who wants a secure cash investment, has maxed out all other tax free options like ISAs and pensions and is a higher rate taxpayer, but personally even then I think I would rather pay tax on a return of 7% than no tax on a return of at best 4.4%

 

[dazzer6666]

I guess tax free returns might be a positive for someone who wants a secure cash investment, has maxed out all other tax free options like ISAs and pensions and is a higher rate taxpayer, but personally even then I think I would rather pay tax on a return of 7% than no tax on a return of at best 4.4%

Tax at 45% on your 7% return would leave 3.85% net……

 

[Jackthelad]

£150...... on £47K holding

Only £400 so far this year

Yikes. Technically you’re down about £2000 you would’ve got from the interest on a normal savings account.

 

[birthofanorange]

£500 between us this month - both max holding.

 

[Shropshire Seagull]

Had poor PB returns on £10k holding for the last 6 months so put £5k in two easy access ISA.
I now "win" £40 EVERY MONTH !!
Yes, no chance of winning the big prize, but I think I read somewhere that the odds are more in favour of being struck by lightening.
I'm not greedy, I'll take the steady return rather than living in a world of hope and disappointment [get enough of that supporting the Albion].

 

[Lostgull]

I've had £100 in premium bonds for about 15 years. Won £25 a few years back but nothing else.

Last month I put a sizeable amount in (towards the top the limit) as a store place for a short period of time

Checked the draw for the first time with a larger chance of winning to see I'd won £100. The winning bond number? One of my original £100 from years back.

 

[slimes]

Yes, although I'd hope you'd have more than £100k after some sort of return on the initial investment!

Thankyou
I'm planning to put some money on the trading 212 app..
Isa 5.2% savings
Or have a gamble on the stock market..
Any advice would be very greatful.

 

[Coldeanseagull]

£225 between us this month

 

[Blue&WhiteSea]

Thankyou
I'm planning to put some money on the trading 212 app..
Isa 5.2% savings
Or have a gamble on the stock market..
Any advice would be very greatful.

Can't give any advice other than don't tie up money you are going to potentially need in the short term and avoid the CFD bit of trading 212, it's basically gambling and is how they can afford to have such low fees

 

[Si Gull]

Another £0 this month. I'm now moving the money to an easy access account that currently pays 4.5%pa.

 

[bluenitsuj]

£150 this month.

 

[slimes]

Can't give any advice other than don't tie up money you are going to potentially need in the short term and avoid the CFD bit of trading 212, it's basically gambling and is how they can afford to have such low fees

Thankyou.
And I will avoid CFD bit.. 74%-87% failure rate

 

[Glawstergull]

£175 between us this month. Both holding max.

 

[Publius Ovidius]

Not a sausage since we put £10k in 6 months ago.

f*** it

going to transfer into a fixed access account at 5%

 

[arewethereyet?]

£0.00 “won” on £19k holding

 

[Mo Gosfield]

Most people sit on the same bonds/numbers for years. As these are not self-selected why not change them from time to time. Have a re-fresh. I know someone who does it regularly. It may not realise greater returns but I think its psychological...' give the balls a good stir ' etc.

 

[Mustafa II]

Most people sit on the same bonds/numbers for years. As these are not self-selected why not change them from time to time. Have a re-fresh. I know someone who does it regularly. It may not realise greater returns but I think its psychological...' give the balls a good stir ' etc.

Because by doing that you miss out on a months draw. It makes no sense.

 

[HalfaSeatOn]

Out of interest, does anyone know if you have chosen the option of getting your winnings in bonds rather than bank transfer, do those winning bonds go in to the next draw or the one after?