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NS&I Premium Bonds: tax free like ISAs???
bubbleoflife_2
Posts: 121 Forumite
I've been suggested by a friend to invest in NS&I Premium Bonds and I can see from the NS&I Premium Bonds website that they're 'Tax-free'.
Pleas pardon my lack of knowledge in the matter. But does it mean that they're like ISAs? That is, they're not taxed and taxman/woman does not need to know?:o
Pleas pardon my lack of knowledge in the matter. But does it mean that they're like ISAs? That is, they're not taxed and taxman/woman does not need to know?:o
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Comments
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you don't 'invest' in premiun bonds...
you are gambling with the interest you could otherwise have made in a savings a/c
so if you have £30k in pbs and could get 3% in a saving a/c then you are gambling with £900 per annum
but any winnings are tax free.EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
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As said it is tax free but a gamble. Can you afford to gamble, knowing your moneyis worht 5% less each year? PBs pay only around 1.3% (on average and you could get nothing)I think.
any oney you WIN will be liable for tax ont he interst unless you invest them in ISAs or back into PBs.0 -
As others have said, it's a gamble. I stuck a fair amount into Premium Bonds in Dec 2010 and have won every month bar one. However, it's only been £25's and £50's so as Clapton said, unless you win over ~£900 per year then you've lost out.
I did it 6 years ago too - with much the same result - overall I lost out vs sticking the money into savings. Now despite diluding myself on the 3rd day of every month that i'll win big i've decided to cash them in and go the savings route.
Just my 2p worth....0 -
you don't 'invest' in premiun bonds...
you are gambling with the interest you could otherwise have made in a savings a/c
so if you have £30k in pbs and could get 3% in a saving a/c then you are gambling with £900 per annum
but any winnings are tax free.
I see... thank you...[Deleted User] wrote:
I've looked
I'm one among the few 18.5% who won something (£25 so far) with just over £1000. Still better than the lootery 
but I can see that I'm loosing out on investment. 0 -
they return a whopping 1.5% on average0
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Other NSI investments can be tax free with interest- why not look at those?0
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