beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 35,850
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.
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 ;-)
Marshy, you're back.
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.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.
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.
LOL indeed - only funning with youLol, 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.
April 2013 £25
March 2013 £25
March 2013 £25
February 2013 £25
February 2013 £25
January 2013 £25
December 2012 £25
November 2012 £25
October 2012 £25
October 2012 £25
September 1992 £100,000.....I win ;-)