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We are saving to buy our first house. We have £40k half of which is in an Isa and the other half in premium bonds. We are at least three years off buying as my husband has just gone self employed. As interest rates are so low, would it be better to transfer all that I can into the bonds so we have the full amount? I have read that the chances of winning are 26000:1 so if you had thirty thousand you should theoretically win something each month?? I'm sure if I did this then interest rates would go sky high... (That's my luck!) just wondered if anyone had any advice on the subject!
Any advice would be greatly received. Thank you
Any advice would be greatly received. Thank you
Answers
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My husband and I have almost the maximum amount each in Premium Bonds, and we both win about £25.00 each, each month.
Not great returns but the best thing about PBs is that you can cash them in very quickly, if you need to, and they are very safe.
We have ISA's too but the return is awful.
So yes, why not put it all in Bonds, you'll never lose but maybe you'll win.
I'm sure you have thought of this, but take in a Monday to Friday lodger and bank that money??
Not great returns but the best thing about PBs is that you can cash them in very quickly, if you need to, and they are very safe.
We have ISA's too but the return is awful.
So yes, why not put it all in Bonds, you'll never lose but maybe you'll win.
I'm sure you have thought of this, but take in a Monday to Friday lodger and bank that money??
Premium bonds are a gamble. Even with laughably low interest rates we've had for ages I don't think I'd ever suggest someone consider them as an investment. For sure, the initial capital you put in is under very very low risk (save from inflation which will continually eat away at it) but the virtual interest is gambled away each draw.
It is up to you how much the premium bond "raffle" appeals to you. Personally I'd go looking for the highest relatively safe saving scheme I could find from the building societies and banks. Just be sure you can get at it again when you need it.
It is up to you how much the premium bond "raffle" appeals to you. Personally I'd go looking for the highest relatively safe saving scheme I could find from the building societies and banks. Just be sure you can get at it again when you need it.
They reckon premium bonds give you about one and a half % tax free interest per year, whatever amount you actually have. The tax free bit is important if you're a higher rate tax payer.
We don't have the maximum but so far over the last year we've won more than our fair share, so for us it's been worth it and better than had we stuck the same amount in a savings account.
We don't have the maximum but so far over the last year we've won more than our fair share, so for us it's been worth it and better than had we stuck the same amount in a savings account.
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