Premium Bonds

Norfolkred1

Norfolkred1

Well-known member
Have some saving maturing soon. Interests rates are shoite and have been thinking of buying premium bonds. Any Mooners had any luck, I know the chances of winning massive are rare but are they worth a dabble.
 
Norfolkred1 said:
Have some saving maturing soon. Interests rates are shoite and have been thinking of buying premium bonds. Any Mooners had any luck, I know the chances of winning massive are rare but are they worth a dabble.
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Depends how much. This article from MSE is pretty comprehensive

www.moneysavingexpert.com

Premium Bonds

Premium Bonds are the UK's most popular savings vehicle, but Martin Lewis' detailed analysis shows returns don't add up for many compared with savings.
www.moneysavingexpert.com www.moneysavingexpert.com

Fact is you need on average an investment of at least £7000 to earn a median interest rate higher than the best deposit rate at the moment. And thats not assured.
 
If you don't want to buy shares, there aren't many options left really. Deposit account rates are 0.5% or thereabouts and likely get worse if the bank base rate goes negative. Premium bond returns have been about 1% but obviously they'll fall correspondingly. It's really just about defraying the effects of inflation.

Shares are a better bet but you need to take a longer term view, to remove short term fluctuations.
 
Borotommo said:
Getting less and less. I had the full allocation (50k) up until recently and won on average £50 a month.

Buy £50k of GSK shares, at today's price and you'd earn £250 a month in dividends
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Me and the old trout are sadly not risk takers and it's only 10k so no real big amount to play with. Leaving it in the buildo at shoite interest rates and being locked is virtually worthless.
 
I had nearly £10.000 in PBs for about 6 years. I won one £50 div in that time. A return of 0.1% over that period.

Cashed them in and stuck it in a yearly deposit account
 
Zoophonic said:
I had nearly £10.000 in PBs for about 6 years. I won one £50 div in that time. A return of 0.1% over that period.

Cashed them in and stuck it in a yearly deposit account
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Probably soon to the Banks interest rate as well. At least we can cash in the PB, if needed, without being penalised.
 
Norfolkred1 said:
Probably soon to the Banks interest rate as well. At least we can cash in the PB, if needed, without being penalised.
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Probably although I have a rate locked in thats was better than the amount of return from National Savings.

Most of my savings now are in investment trusts which contain a spread of shares (low risk)
 
Zoophonic said:
Probably although I have a rate locked in thats was better than the amount of return from National Savings.

Most of my savings now are in investment trusts which contain a spread of shares (low risk)
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3 options from the buildo
1 year fixed @ 0.35%
3year fixed @ 0.45%
5 year fixed @ 0.70%

I may just buy a boat.
 
Yep just read it. It seems the higher amount you can invest the more likely to get a better return. Something over what I had in there anyway.
 
Government and corporate bonds are on their backside too. Equity markets may carry an element of risk, but long term won’t let you down.

Stick to blue chip companies without huge debt who pay solid dividends and you’ll do fine. Remember, anything earning less than inflation is actually eating your money
 
Norfolkred1 said:
Have some saving maturing soon. Interests rates are shoite and have been thinking of buying premium bonds. Any Mooners had any luck, I know the chances of winning massive are rare but are they worth a dabble.
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My brother does well out of them, nothing major but he certainly gets more than he would in a bank over a 12 month period

I'm thinking of buying some too
 
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