Premium Bonds - Are they still worth it?

Bolando

I have around £15k to invest, save.

Already used up my full ISA allowance for the last tax year and probably will get another for this year. However I've also been told different things about premium bonds?

Are they still worth it? Not quite sure what the best way to grow my money is at the moment?

Any advice would be appreciated

Thanks

opinions4u

The Premium Bonds prize fund is 1.5% tax free. Personally I'd be looking to get more than this by saving elsewhere.

atush

If you want to hold a small amt for a flutter (as it is really gambling), fine. A larger amt would be foolish IMHO.

Russe11

better odds to go for highest interest and buy lottery tickets with the interest.

BobQ

PBs deliver 1.5% on average tax free. Statistically you will only get this sort of figure by having a lot of them and they are more favourable for higher rate taxpayers.

The real question is do you want a very good rate of return or a modest return and a bit if a gamble without losing your capital.

THe other thing is they are as guaranteed as it gets being Government backed.

But I agree they are not a great deal unless you win a big prize occasionally.

bendix

When you say 'still' worth it, you seem to be implying they were before. Never have been, never will be.

They are investments [sic] for an England that went to Blackpool for its holidays, and wore kiss-me-quick hats. They are a granny's investment, and not for anyone who has the slightest sense of a good financial product.

stuzhunter

you have to be in it to win it plus lucky as well..It's pure lottery.. You could put money for years without winnning anything or you could win a big or small prize next month..

verntern

bendix wrote: »

When you say 'still' worth it, you seem to be implying they were before. Never have been, never will be.

They are investments [sic] for an England that went to Blackpool for its holidays, and wore kiss-me-quick hats. They are a granny's investment, and not for anyone who has the slightest sense of a good financial product.

Very true bendix. Back in the 70's my children's grandmother bought them, in the then units available, £1, £5 etc? An investment for their future! Chuckle, never a bean in winnings. Would have been better to plant some beans, climb the beanstalk and steal the pot of gold from the giant! Premium bonds are for those with excess capital to gamble. Not worth considering as an 'investment'.

lilac_lady

It's a handy way to save money that will be used for home improvements, annual insurance payment and so on. You may not make any profit but there's always a chance of a win.

I have some but wouldn't use PBs as a main method of saving.

talexuser

Premium bonds are the last thing I bought. Sort a pension (particularly if your employer contributes), get several years worth of fund ISAs, liquid savings of a year's salary, then consider say 5% of your assets in some bonds for a pure gamble if you are not bothered by that stage of losing some small interest and inflation eroding the capital slowly over the years.

I've had 5k in for 13 years and got 1025 in prizes over that time. May sound good but equates to around 1.5% a year (prizes not reinvested, inflation not taken into account) so poor in investment terms, and the last time I looked the calculator said I was slightly above average in luck. So purely a punt for a big prize after you've taken care of everything else important.