Premium bonds - reasonable rate now?

withnell

I just thought I'd post about Premium Bonds in the current climate - I would never suggest that someone used them for short term gain, but as a low-cost was of having a gamble every month, with savings rates everywhere dropping I would argue that they've become a lot better!

Current Rates:

Non-tax payer: 1.8%
20% Tax payer: 2.25%
40% Tax payer: 3%

opinions4u

withnell wrote: »

I just thought I'd post about Premium Bonds in the current climate - I would never suggest that someone used them for short term gain, but as a low-cost was of having a gamble every month, with savings rates everywhere dropping I would argue that they've become a lot better!

Current Rates:

Non-tax payer: 1.8%
20% Tax payer: 2.25%
40% Tax payer: 3%

Have they passed on the last 1% and 0.5% cuts in BofE rate yet? Don't all stampede now!

baby_boomer

They've not passed on the last 0.5% cut. But they will do!

The lower rate means that the best wins take a higher proportion of the % available for prizes.

So the lower the rates, the more it is out and out gambling rather than something which could be considered an alternative to savings or investment.

Premium Bond threads should be moved to the MSE gambling board IMHO.

If it ever gets introduced

melbury

I can remember some years ago there used to be over 20 pages of prizes to check on teletext (and the smallest prize shown on teletext was £5,000). When I had a look last week there were only 2 pages:mad: There is only one prize of £100,000, one prize of £50,000 and one prize of £25,000 and very few £10,000 and £5,000. Therefore chances of getting a nice little windfall from bonds is almost zero.

PeteMc

Just cashed mine in (only had £3.5k) as they are now better off going towards my offset mortgage. Decided to leave them in for the next draw though so that'll be the million for me thanks