Premos! To sell & do waht with?

jack_and_chester

I bought £20,000 of Premium Bonds last year. I didn't need the money & I liked the idea of the safe gamble. As it goes, have won about £450 in £50 increment. I always said I'd it for a year and see. The year is nearly up and I'm not sure what to do with the money. I may need it in the next 12 months for a house deposit but in the meantime I'd like it to work for me.
Keep the? or ditch them? and if ditch, what should I do with it?
Thanks!

Reaper

I calculate your winnings over the year as 2.25% of your capital. That sounds about right as the amount paid out by Premium Bonds on average is 2.15%.

As savings go that is a somewhat low rate of return but, of course, there is always the hope of winning the big one.

If you enjoy the excitement of getting winning cheques through the post and the chance of a big win then by all means leave them there for another year.

However if you prefer the certainty of a return there are a selection of savings accounts paying between 5% and 6% before tax. For example 5.40% with Birmingham Midshires. See replies to other threads in this section for a list.

If you haven't already I would definitely switch £3000 to a cash ISA regardless of what you do with the rest.