Ditching £10k of Premium Bonds. What to do with it?

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Hi folks, after receiving Martins Email this week regarding how poor premium bonds are and will become, I am looking to switch my £10,000 somewhere else.

However I already actively have:

Halifax Help To Buy ISA (£200 per month)
HSBC Regular Saver 6% (£250 per month)

So my question is, where is the best place for me to take
My hard earned 10k (unfortunately I can't afford to tie it up for 12 months) bearing in mind l opened my Halifax HTB ISA October 2015
And actively paying into it this year.

Thanks in advance

JB

Comments

  • planteria
    planteria Posts: 5,321 Forumite
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    edited 23 April 2016 at 10:12AM
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    fwiw i have Premium Bonds alongside Investments and Savings and don't plan to cash them in soon, as i think they are a useful 'safe' holding to have alongside other things.
    i currently don't own a property, so having some safety does have an appeal, as i will be buying again at some stage.
    on one hand i understand the concern re. 'rates' from Premium Bonds, but on the other hand, long-term, both these and cash savings are both being eroded by inflation, and so the place to have the bulk of long-term funds is in investments.
  • badger09
    badger09 Posts: 11,247 Forumite
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    bailey_uk wrote: »
    Hi folks, after receiving Martins Email this week regarding how poor premium bonds are and will become, I am looking to switch my £10,000 somewhere else.

    However I already actively have:

    Halifax Help To Buy ISA (£200 per month)
    HSBC Regular Saver 6% (£250 per month)

    So my question is, where is the best place for me to take
    My hard earned 10k (unfortunately I can't afford to tie it up for 12 months) bearing in mind l opened my Halifax HTB ISA October 2015
    And actively paying into it this year.

    Thanks in advance

    JB

    If you receive MSE emails, then you're probably familiar with the site.

    Have you read this?

    http://www.moneysavingexpert.com/savings/which-saving-account
  • xylophone
    xylophone Posts: 44,590 Forumite
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    You might consider a TSB Plus current account, a Nationwide Flexdirect and a couple of Tesco current accounts.

    You could set up SO for £1000 from NF to TSB and from TSB to NW on same day each month - move interest accruing on NF, TSB and T1 to unfilled T2.
  • teddysmum
    teddysmum Posts: 9,475 Forumite
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    xylophone wrote: »
    You might consider a TSB Plus current account, a Nationwide Flexdirect and a couple of Tesco current accounts.

    You could set up SO for £1000 from NF to TSB and from TSB to NW on same day each month - move interest accruing on NF, TSB and T1 to unfilled T2.



    I'm considering a 'round robin' of payments and was thinking of transferring (same day if possible) manually, in order to not be caught out by different banks' policies over bank holidays, with standing orders just for regular savings accounts.


    Am I correct in assuming that this will take under an hour per month ?
  • bigfreddiel
    bigfreddiel Posts: 4,263 Forumite
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    teddysmum wrote: »
    I'm considering a 'round robin' of payments and was thinking of transferring (same day if possible) manually, in order to not be caught out by different banks' policies over bank holidays, with standing orders just for regular savings accounts.


    Am I correct in assuming that this will take under an hour per month ?

    No I'm afraid it won't take under an hour a month!

    Set it up correctly will take 10 to 15 minutes, and that should be it. Each month your payments you set up will just happen.

    Simples

    fj
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    No I'm afraid it won't take under an hour a month!

    Set it up correctly will take 10 to 15 minutes, and that should be it. Each month your payments you set up will just happen.

    Simples

    fj

    The poster wants to do it manually Freddie.

    So yes, well under an hour a month should be fine.
  • saver861
    saver861 Posts: 1,408 Forumite
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    teddysmum wrote: »
    I'm considering a 'round robin' of payments and was thinking of transferring (same day if possible) manually, in order to not be caught out by different banks' policies over bank holidays, with standing orders just for regular savings accounts.


    Am I correct in assuming that this will take under an hour per month ?

    You could set up the SO's to take place every four weeks on a Wednesday. That will cover most of your concerns until the next mid-week Christmas.

    Better to do it automated as inevitably the manual process is prone to obstacles that will surely occur at some stage some months.
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    saver861 wrote: »
    Better to do it automated as inevitably the manual process is prone to obstacles that will surely occur at some stage some months.
    Do it manually near the start of the month, and you've still got most of the month to re-try if something goes wrong.
    Eco Miser
    Saving money for well over half a century
  • teddysmum
    teddysmum Posts: 9,475 Forumite
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    We are lucky to have branches of all the banks I am considering (in Tesco's case a customer service desk) very close, so even topping up with cash, anywhere needed (because of a glitch) would not be a problem.


    Manually you have the versatility of not having to plan standing orders to avoid bank holidays and being able to adjust the amount paid in to service the use of card payments (for extra benefits), but once up and running, I may change my mind.


    I wonder if Tesco will be increasing their extra reward points when using their card offer, now they are discontinuing double up events (so devaluing reward points).They say they will be giving more with purchases to compensate.


    Just one more question :
    In cases like the Halifax and Co-op bank, who give a fixed monthly bonus instead of interest, is the bonus counted as taxable interest or treated like reward points ? (I suspect the former)
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    The Halifax Reward is £6.25 of taxable income with tax deducted, but not interest, so will still still have tax deducted. The tax is reclaimable by those whose non-savings, non-dividend income is less than their Personal Allowance.
    I don't know about the Co-op.
    Eco Miser
    Saving money for well over half a century
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