Premium Bonds Article Discussion Area

roncos

Nice article. However in my particular case I think premium bonds are a good option v savings products. I have deposited the maximum 50k£ in savings bonds, I need easy access, its short term.

The income from prizes is very consistent, very low variability. Averaged over any period longer than about 4 months the return is exactly the return predicted by moneysavingexpert. The effective interest is just over 1%. Compare this to savings accounts, the best savings accounts are about the same interest and the ones that are easy access and allow a large initial deposit are few and far between. Buying bonds has no KYC or other hoops that opening a savings account in some obscure BS would have, zero chance of being rejected (Liver in uk for only a few years so it is a consideration). Overall premium bonds have been a good option.

However, the interest is not compounding as I am already at the maximum bond holding, so not a good long term option.

Also, just discovered they are reducing the interest rate so might cash out now.

roncos

roncos said:

(Liver in uk for only a few years so it is a consideration)

Apologies for typo. Liver, and the rest of me, has been living in the uk for only a few years.

eskbanker

roncos said:

roncos said:

(Liver in uk for only a few years so it is a consideration)

Apologies for typo. Liver, and the rest of me, has been living in the uk for only a few years.

The savings interest rate landscape is pretty offal....

roncos said:

However, the interest is not compounding as I am already at the maximum bond holding, so not a good long term option.

Cash deposit-based products never are a good long term option because of inflation, but the compounding effect is negligible in the current ultra-low interest environment anyway.

PeterOzanne

Hi Martin or anyone! My question is about inheriting the money from PB's. In the article is says the will executor has to cash them, but what if I didn't write a will naming an executor? Would my son be entitled to cash them, just as he would automatically inherit my money and possessions? 

Black_Cat2

PeterOzanne said:

Hi Martin or anyone! My question is about inheriting the money from PB's. In the article is says the will executor has to cash them, but what if I didn't write a will naming an executor? Would my son be entitled to cash them, just as he would automatically inherit my money and possessions? 

I don't think Martin sits reading the boards but I love your optimism!  Someone else will be along shortly... 😹

LizB62

Why wouldn't you write a will, making everything absolutely clear ?!
IMHO everyone should have a clear and up to date will - it makes things much easier for your relatives.

strawb_shortcake

I have the maximum PB's, for us it's an interim measure until our current mortgage deal ends as we may choose to pay it off. We do have money in other accounts 
What I don't see covered much is our situation, I am a basic rate taxpayer but also in receipt of child tax credits (I know it makes no sense) but it's in our interests to keep our yearly interest to below £300 to keep our tax credit payments at their highest. 
It doesn't sit really well with me, but I'm going to maximize my income

soulsaver

PB's 1% is still relatively good .. particularly if you pay tax on savings interest. 

cloudchaser

Just getting to understand PB better and could not spot any info around draw eligibility for purchased bonds. So, if I buy some PBs today which is the earliest draw they would be eligible? December 2020?

RG2015

cloudchaser said:

Just getting to understand PB better and could not spot any info around draw eligibility for purchased bonds. So, if I buy some PBs today which is the earliest draw they would be eligible? December 2020?

Yes.

 Click Here for more details