Premium bonds vs. Halifax web saver

johnandkymberley

Hi all,
My hubby and I are saving, well trying too!! We are saving for a big family holiday next year-celebrating 2x30th,2x50th and 1x21st. John is one of the 30th so we HAVE to go really!!!! We are also thinking about having a baby after so would like a little bit put aside for a nice nursery etc.
So we are selling on eBay and saving every month out of our wages, we are unsure of the exact amount as John has got a promotion and an offer for a bonus of £1200!!! But that's an offer not a definate. I have been made full time at my work-4 full days as we don't open on a thursday so I'm happy about that! We haven't been paid our new salaries as of yet, my first full time pay is this month and johns is either this month or next, so we are a bit unsure at the minute.
We have £200 saved so far from selling things on eBay. Not a lot but a start and I still have 240 items to list!!!!
We are thinking about a Halifax web saver, we are with Halifax already and the interest is good for the first year. You can transfer money online and it's flexible. Good points are: good interest rate, bad points: if we need money we will end up dipping into it as its so accessible.
And then
Premium bonds, we have never owned any so we are unsure of buying any. We like the idea of them and the money is less accessible so we are unlikely to dip into it. But do we put in £100 at a time or save and put £500 in one bond? Which is better for trying to win a cash prize? The bad point about premium bonds is the no interest part.

As stated the money won't be in there for years, otherwise I'd go for a fixed isa, perhaps in the future we will even when we have a baby we will still have a little bit of money to build a nest egg.

So which one? Online savings or premium bonds??

What would you do in my situation?

We will look forward to your opinions and suggestions!!

Thanks in advance

J&K

ColdIron

Savings account every time for me. I had 30k in PBs for a year and won £450. It's now in a fixed savings account where it will earn me £1,140 and I feel much happier about it. I could win more but then I might win less

Check out the MSE PB calculator and see what you think
http://www.moneysavingexpert.com/savings/premium-bonds-calculator/

innovate

As you are both working, you might want to have a look at ISAs (tax-free interest) https://forums.moneysavingexpert.com/discussion/401374.

The other options could be the First Direct Regular Saver (8%) and/or the Nationwide Regular Saver (6%).

The chances of winning big at Halifax are probably in the same sort of ballpark as the Premium Bond ones.

johnandkymberley

Hi, can anyone be specific on what they would do if they were me?

innovate

johnandkymberley wrote: »

Hi, can anyone be specific on what they would do if they were me?

I'd read as much as I could, then make up my own mind if I were you.

opinions4u

Premium Bond prize pot 1.50% tax free.

Online Saver account 2.80% before tax. 2.24% after basic rate tax.

2.24% is bigger than 1.50%.

yotmon

You are saving up for something specific - the holiday and have a limited time to do so. I don't think it matters where you stash the cash - bank/building society/premium bonds or even under the mattress. What does matter is that you understand the need to save the amount, otherwise you will end up 'borrowing' the money to go on the holiday and that would be a sin. You sound as though you have never been able to save in the past and are now attempting to raise funds for something that will be over in days. You also mention selling items on e-bay and still have 240 items to list. I assume that the majority are clothing (don't like assuming), so are you sure that you can do without these 'items' or will you just end up replacing them in the future with part of your savings. You need to be self disciplined to save, there is no 'cake and eat it' I'm afraid. Just focus on how much the holiday is going to cost and save accordingly without dipping into it for other little luxuries.

psychic_teabag

I think with PB you don't go into the draw for a couple of months, or something, which is significant if you are only going to hold them for a short time. There may be a similar effect when cashing them in. Whereas with a savings account you'd be earning interest every day.

Maybe a notice account would be a good compromise between limiting access and getting hold of the money if you need it - I think I saw Coventry offering 3.25% on an ISA which is quite good at the moment. But I think for non-ISA accounts, notice accounts aren't offering much more than instant-access accounts. Note also that some notice accounts insist on the notice, whereas others will let you either give notice or take the money immediately with loss of interest.

Maybe a postal account would be inconvenient enough to prevent dipping in ? Or just a branch account somewhere far away ! (Allowing remote deposit but requiring you go there to withdraw.)

johnandkymberley

Can you explain what a postal account is please?? Thanks

johnandkymberley

yotmon wrote: »

You are saving up for something specific - the holiday and have a limited time to do so. I don't think it matters where you stash the cash - bank/building society/premium bonds or even under the mattress. What does matter is that you understand the need to save the amount, otherwise you will end up 'borrowing' the money to go on the holiday and that would be a sin. You sound as though you have never been able to save in the past and are now attempting to raise funds for something that will be over in days. You also mention selling items on e-bay and still have 240 items to list. I assume that the majority are clothing (don't like assuming), so are you sure that you can do without these 'items' or will you just end up replacing them in the future with part of your savings. You need to be self disciplined to save, there is no 'cake and eat it' I'm afraid. Just focus on how much the holiday is going to cost and save accordingly without dipping into it for other little luxuries.

We have been able to save in the past - a £10,000 wedding! But we are now starting a fresh after the wedding and honeymoon

R_P_W

No offence but I dont think we are talking saving huge amounts here? I guess a couple of £k for a holiday and a few other bits.....so either set up am instant access cash ISA or the best paying online saver you can and stick it in there.