Family Building Soc - Windfall Bond

Steve_xx

Family Building Society has launched a savings account that works a bit like a Premium Bond - paying monthly tax-free prizes of up to £50,000.Family BS has today issued the Windfall Bond, allowing savers who pay in £10,000 a time the chance to win a prize. There will be one prize of £50,000, two of £10,000 and ten £1,000 prizes each month.

Read more here:

http://www.thisismoney.co.uk/money/saving/article-2812206/Family-BS-new-bond-pays-monthly-tax-free-prizes-50-000.html

Blackdog

Thanks for posting it may be of interest to someone. I am inclined to agree with the person who left the comment on the article that we would prefer a better interest rate rather than a chance to win a prize.

Steve_xx

Blackdog wrote: »

Thanks for posting it may be of interest to someone. I am inclined to agree with the person who left the comment on the article that we would prefer a better interest rate rather than a chance to win a prize.

Yes it may be interesting to some. It seems to have decent odds when you compare it with conventional Premium Bonds. And of course just like with ordinary Premium Bonds you can get your cash back. A low risk gamble which may be worth a punt in these days of very low interest rates for savers.

Mistermeaner

Ive just invested £2 in a similar scheme with a firm called camelot. Trouble is my investment isnt protected so may get nothing back though. Worth it though as potential payouts are huge.

Steve_xx

ggb1979 wrote: »

Ive just invested £2 in a similar scheme with a firm called camelot. Trouble is my investment isnt protected so may get nothing back though. Worth it though as potential payouts are huge.

You paid your money to Camelot and that's where the similarity ends, ie as you say, you can't have it back!

Mistermeaner

In it to win it

My next post will be about investing millions

gizz_mo

Does anyone know if the "winnings" on this would be taxable? None of the articles seem to discuss that.

Steve_xx

gizz_mo wrote: »

Does anyone know if the "winnings" on this would be taxable? None of the articles seem to discuss that.

....did you take time to read and understand the headline on the link that I posted?

gizz_mo

Apologies I didn't actually read that Daily Mail article - but it does seem to be the only one that mentions the winnings are tax free. The Windfall Bond booklet on Family Building Society's web page makes no mention that the prizes are tax free nor do articles by Moneywise, the Guardian, Telegraph etc. So just wondering how they came to the conclusion that they are tax free.