premium bonds

smudger1946

Happy new year all.
Would it make sense to transfer my savings into premium bonds? as the interest is low in the bank.
I have £30,000 in savings.

Many thanks
A !!!!ed orf pensioner.

ebyard

No, there is no benefit in getting premium bonds.

The return is around 1.8% and you can easily get double that in a savings account at the moment. If you don't need to spend the money soon, then look at some fixed rate savings accounts which will pay around 4.5%.

With premium bonds you are pretty much just lending Gordon Brown your money!

spalding

http://www.moneysavingexpert.com/savings/premium-bonds-calculator/

The value of prizes paid out is determined by an interest rate, which is currently 1.8%, though it changes, usually following a change in Bank of England UK rates. This means if you owned every Premium Bond in existence, the amount won over a year would be equal to 1.8% of what you put in, so plenty of accounts out there that would be that