Premium Bonds or Santander 123

Bridgetjs

I have £20,000 in premium bonds and the monthly payouts have virtually dried up. Is it worth taking the money out and putting it in the Santander 123 account.
I also have @ £30,000 invested in a mixed portfolio with NFU which is a long term investment and, because of the current economic situation, is not performing well but probably needs to stay where it is until the markets pick up.
Advice please.

Flobberchops

I feel this is a really very simple decision. Where would your money earn the most?

I'd ditch the Premium Bonds. Maybe keep a cheeky £1000 holding if you like the potential of winning the million. Santander 123 isn't a bad place to hold the cash, you may be able to get a better return if you're willing to open several accounts elsewhere though.

I wouldn't touch the investments though. No point selling at a low.

bigadaj

Whilst not necessarily touching the investments I would have a look at the way it is being held. There may well be lower cost options which would benefit from a review and potentially a transfer.

NectarCollector

keeping £20k in santander would give you £45 net interest a month after deducting £5 monthly fee. Then add on cashback from council tax, water/gas/electric bill, phone/tv bill etc) you'd probably earn that £5 fee back just from cashback

AnotherJoe

NectarCollector wrote: »

keeping £20k in santander would give you £45 net interest a month after deducting £5 monthly fee. Then add on cashback from council tax, water/gas/electric bill, phone/tv bill etc) you'd probably earn that £5 fee back just from cashback

So that's effectively like getting one guaranteed premium bond win a month.

HappyMJ

Bridgetjs wrote: »

I have £20,000 in premium bonds and the monthly payouts have virtually dried up. Is it worth taking the money out and putting it in the Santander 123 account.
I also have @ £30,000 invested in a mixed portfolio with NFU which is a long term investment and, because of the current economic situation, is not performing well but probably needs to stay where it is until the markets pick up.
Advice please.

If you had £26,000 in premium bonds you should win one £25 tax free prize per month.

If you had £20,000 in the Santander you WILL get £45 every month no matter what.

So Santander wins.....unless you pay the top level of 45% tax but there's much better things to do with your money if you had that much.

eskbanker

NectarCollector wrote: »

keeping £20k in santander would give you £45 net interest a month after deducting £5 monthly fee. Then add on cashback from council tax, water/gas/electric bill, phone/tv bill etc) you'd probably earn that £5 fee back just from cashback

No, it's about £45 gross interest after £5 fee, net of basic rate tax it's about £35. Unless the answer relates to the post-April scenario of course....

Dan83

If you don't want the hassle of multiple accounts and moving money around go with Santander, if you don't mind a bit of work put £2500 in nationwide, £2000 in TSB, £5000 in Lloyds then 2 accounts in tesco £3000 in each. That's only £14500 so maybe look at other current accounts with no fee's or drip feed into regular savers.

Rjn1

Last week Martin mentioned that ‘Premium Bonds’ basically could be a good purchase or words to that effect.
I have been asking people for over 55 years whom these people might know who have won large amount on the Bonds?
I have written to financial magazines, had letters printed asking this same question, NO one came forward to say they knew of someone who had won large amounts!
They asked the ‘Bonds’ people to comment there reply was the standard answer ‘they do not publish names of winners’ (well they can’t as no one wins the biggies)
The Daily Mail also said in there financial column to purchase ‘Premium Bonds’
I wrote to them and asked them a simple question, to ask all in the office ‘if they know anyone who has one large amounts on the Bonds’
They wrote to me and informed me they were very interested and would run an article.
Needless to say that did not transpire
I think the Government stop them!
For the record I have found and Know of ‘Football pools millionaires’ as well as ‘Lottery millionaire's’ but None on the Bonds
I did speak to a ‘financial consultant’ and asked him the same question, he replied he had known of only one person and the amount was £30,000
Martin as good as your show is this remains to be readdresses and inform the nation that this is a total rip off and that Premium Bonds only pay out small amounts, it begs the question what do they do with all that money? PSI have Bonds, not any large amount, given to me when I was younger and no I've not won.

Ballard

Rjn1 wrote: »

Last week Martin mentioned that ‘Premium Bonds’ basically could be a good purchase or words to that effect.
I have been asking people for over 55 years whom these people might know who have won large amount on the Bonds?
I have written to financial magazines, had letters printed asking this same question, NO one came forward to say they knew of someone who had won large amounts!
They asked the ‘Bonds’ people to comment there reply was the standard answer ‘they do not publish names of winners’ (well they can’t as no one wins the biggies)
The Daily Mail also said in there financial column to purchase ‘Premium Bonds’
I wrote to them and asked them a simple question, to ask all in the office ‘if they know anyone who has one large amounts on the Bonds’
They wrote to me and informed me they were very interested and would run an article.
Needless to say that did not transpire
I think the Government stop them!
For the record I have found and Know of ‘Football pools millionaires’ as well as ‘Lottery millionaire's’ but None on the Bonds
I did speak to a ‘financial consultant’ and asked him the same question, he replied he had known of only one person and the amount was £30,000
Martin as good as your show is this remains to be readdresses and inform the nation that this is a total rip off and that Premium Bonds only pay out small amounts, it begs the question what do they do with all that money? PSI have Bonds, not any large amount, given to me when I was younger and no I've not won.

Thanks for this. A new conspiracy theory. I needed a good chuckle today.

Dan83

i take it you don't have any bonds then?