Question Author
BigMac..
Many many thanks for your information. We hadn't considered Premium Bonds at all, so that is perhaps something we will have to sit down and talk about.
We are a youngish couple, i am in my 30's and partner in his 40's. We have no mortgage, as this has already been paid off, however a few very small outstanding loans, which we intend on settling.
We have a six year old daughter who financially is taken care of, from an endowment policy which matures in 3 years, we are going to invest all that into an account for her for when she gets much older.
So all in all the monies in excess of 100K is purely to give us some kind of return and income going forward and naturally to give our daughter the financially security after our days.
One thing i did not understand and i still can not get my head around with this BOND and EQUITY scheme, is that, i know the money will start working for us from day one, and we were told that if i went into the bank and asked for a balance and our money had grown for say example by �8,000 , i could potentially withdraw the �8,000. But on the other hand if the scheme isnt working too well our monies could be less and we may have no surplus to withdraw. So is it the luck on the day , and hope we choose the right day to go into the bank, to determine if the scheme is working for us weather we can withdraw the excess... as one day we could be in a surplus and the next a deficit.
sorry if this sounds confusing, but i am mightely confused by all the above and still can not see how we could potentially make so much money from this. Even though i know we are investing a huge amount initially as well.