21 Years old with £30,000.00 in Premium Bond is time to invest somewhere else?

steampowered

Refer to http://www.moneysavingexpert.com/savings/premium-bonds - the effective interest rate is about 1.3%.


If you might need the money in the next two years, then high interest savings.


If you are looking to save for the longer term, it is likely you will be better off with a stock market investment. Obviously you will need to accept the fact that the value of your investment will fluctuate up and down over time, and you need to avoid the foolish temptation to keep checking its value and trying to sell whenever the value goes down (this results in buying high and selling low).

droopsnoot

stuckindoor11 wrote: »

I could leave them in Premium Bonds for a few more months to see if my luck has changed?

That's the key - any return in PBs is entirely down to luck. Although there are various figures around for the average return (mine is just under 1% AER over the last 4-5 years) there is the chance, as you have seen, that you will get nothing. Of course, there is always the chance that you'll get £1m, and that's the main draw for people I imagine. As with any game of chance, though, there's probably little to be gained by leaving them for another short time in the hope of a big prize. If you have plenty of other sources of cash, by all means leave them and use the other cash to get better returns. And at least it's not like playing the lottery, you do at least keep your stake in PBs.

There are many other places you could put the money, have a good look around this thread and keep watching it for ideas. If you're interested in investing there are many other sites (such as Monevator and MotleyFool) that are worth a look too.

iAMaLONDONER

Archi_Bald wrote: »

What is it about all those 21 year olds on here with tens of £Ks (or £Gs) in cash?

Surely it must mean there's a real economic recovery (or a growing number of trolls!)

kidmugsy

Archi_Bald wrote: »

What is it about all those 21 year olds on here with tens of £Ks (or £Gs) in cash?

I assume that they are usually lying.

zaax

I was 22 when I used 10k to start on the property ladder, the profits are better than the 2% from banks etc.

iAMaLONDONER

zaax wrote: »

I was 22 when I used 10k to start on the property ladder, the profits are better than the 2% from banks etc.

I assume you weren't living in London as I imagine 10k wouldn't go very far in our expensive capital!

organic_wanabe

Quote:
Originally Posted by Archi Bald:
What is it about all those 21 year olds on here with tens of £Ks (or £Gs) in cash?

I can only speak for my 21 year old DS and in his case it is having a nagging mother who has always instilled in him the need to work hard and save hard, as well as having a good time provided his expenditure does not exceed his income! He has worked hard since he was 14 (paper boy, coffee shop, good school grades, useful University degree, good job) and I have helped him make the most of his savings (which includes 21 years of Birthday and Christmas money, as well as his hard earned cash) and watched them grow. He now has a real interest in investment (working for a big Fund Management Company in London which I will not name). In the not too distant future, I hope he will be able to guide me in my investments!

I should add that even although DS has substantial savings (approx £50k) and a very well paid job for his age, he has a student loan (approx £18k which will be paid back through his PAYE). In addition, he still does not have enough for a deposit on a flat in central London. In the 1970's, when I started work and bought property for the first time, life was far simpler.

opinions4u

I've never been better off than I was between the ages of 18 and 22.

bigadaj

iAMaLONDONER wrote: »

I assume you weren't living in London as I imagine 10k wouldn't go very far in our expensive capital!

Depends, if that poster is of mature years then you could have bought a lot in london for that money, just think what you'd have made in notting hill over the last half century!

bigadaj

opinions4u wrote: »

I've never been better off than I was between the ages of 18 and 22.

Well the lap dancing career was only ever going to last so long!