Windfall Bond

suzyq2909

Has anyone got any experience or advice about these please? Are they a good investment, safe, easy access?

Thank you

Zanderman

If you mean the Family Building Society Windfall Bonds (https://familybuildingsociety.co.uk/Savings/Accounts/Windfall-Bond.aspx) there is a thread with a little info and experience here: https://forums.moneysavingexpert.com/discussion/5182646

Not much info, and a few somewhat misplaced moans, there, but it might help, a bit!

jimjames

suzyq2909 wrote: »

Has anyone got any experience or advice about these please? Are they a good investment, safe, easy access?

Thank you

I guess whether they are good option really depends on your situation. Have you already used accounts paying high interest? Do you have other cash available and what is the requirement for access to the money?

Peelerfart

I've looked at these and haven't dismissed them. Recently opened a different account with FBS and so far so good.

Seems to me like a better bet than Ernie at least from an interest point of view. However, I've not bought yet, maybe this thread will tip me one way or the other :-)

suzyq2909

Thanks for the replies. I’ve got a Lump sum I want to invest but will need it after about 6 months. I’ve already maxed the premium bonds so that’s not an option

ValiantSon

You are guaranteed interest at the Bank of England base rate, so currently 0.5% and you might win one of the prizes. It could work out really well for you, but it could easily be a dreadful return of just 0.5%, and only on six months holding. The odds of winning a pirze are not bad, but neither are they fantastic, and they cetainy aren't guaranteed (although I agree that they sound like a much better offer than premium bonds, which I consider to be a huge waste of time and money - considering the impact of inflation). This sounds like a pretty poor return to me.

In my opinion you would be better off putting the money in the best paying easy access savings account (I will assume that you have maxed out available current account interest rates). Tesco will give you one offering 1.3%. As a comparison, on the value of one bond, you would earn £65 in interest with Tesco over six months, but only £25 with the windfall bond, and six months in the prize draw is not a very long time to leave yourself open to winning one of the prizes.

N.B. This is not an investment; it is a savings product with an element of gambling thrown in (albeit one where your stake is not at risk).

suzyq2909

Thank you for the advice, much appreciated

Tryinghard

suzyq2909 did you go for this in the end? I'm just looking at buying either 1 or 2 bonds & the interest rate is currently .75 I believe. What happens to interest if it's only paid annually on 31 July & you withdraw your money after a few months?