Fed up with isa merry go round

pennyshahin_2

I've become so disilusioned with isa merry go round I've stuck £7,500 in premium bonds and will hope for the best am I crazy?

Lokolo

Yes.

(10char)

glider3560

Not so crazy.

My parents thought the same about a year ago. They put £2000 each into premium bonds, so total £4000.

Between them in the last 12 months, the "prizes" have amounted to £200. Which is a return of 5%. Pretty good, considering they've had instant access to the money.

RayWolfe

Not quite instant ... but a good result.
As regards the OP, I'm with Lokalo

ses6jwg

Worth having a bit of money in em IMO, but not too much.

Better for higher rate taxpayers.

Ifts

pennyshahin wrote: »

I've become so disilusioned with isa merry go round I've stuck £7,500 in premium bonds and will hope for the best am I crazy?

I would try to use up my annual ISA allowance first if you can spare the money. Cash Isa rates are not too great at the moment but it will increase your balance for tax free returns if & when rates improve.

I do have premium bonds myself, but I will withdraw some money after the next draw takes place to fund my 2010/2011 years ISA allowance.

If I have spare funds I put them into premium bonds at the end of the month, and if a good savings bond comes along or I need the money I withdraw. In my experience withdrawal from premium bonds is pretty much instant access to the money.
If I request the money straight away, I usually receive payment in my bank well within the 8 days they say on their website, and if I request payment after the next draw then payment is usually received on the 2nd/3rd working day of the month (same as making a withdrawal from a savings account which pays into your linked account via bacs payment).