Why is everyone so down on Premium bonds on this site.

Innys

susanjfp wrote: »

I am not!!! I guess it depends on the tax situation and diversification one is after. I have the max in Premium Bonds along with decent share portfolio, 52 building society accounts (yes carpetbagging!!), ISA's, cash in bank and some ETF's plus of course house. For me as 40% tax payer the benefits of P.B are greater than a standard tax payer and give me that bit of extra divesification i am after as i would not want everything tied up in shares/building societies for instance. Plus they give me that bit of fun each month when i check to see if i have won anything that i can never get from seeing the interest added to a bank account and the subsequent removal of even more of the interest when i do my tax return.

Before this thread descended into a debate between yourself and dunstonh about the merits, or otherwise, about Unit Trusts I had made the point about NS&I index linked certificates.

To my knowledge there is no comission/fee/charge payable on buying these. Therefore, why have you chosen to go down the PB route rather than these certificates?

I have no axe to grind, it's your money after all, but I don't understand the choice you have made.

I too am a higher rate tax payer and would certainly go for them but need access to my savings in the next 9 months, not really making them suitable. If that wasn't the case, I would have maxed out on them by now.

naturegirl_2

I have been buying PB's in the last couple of years as it is a simple and easy way for me to save money I would fritter away. It's also a tradition started when Grandparents buy you your first £1 bond. I'm unsure of all these other options (there seems to be too many) so I keep on buying the bonds!!