£1000 - Premium Bonds or savings account?
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Netherspark
Posts: 53 Forumite
I have £1000 that I could safely shift out of my current account and my initial thought was Premium Bonds, or I could put it into a 5% savings account which would get me £50 after a year.
Is Premium Bonds actually going to be worth it at £1000, would it at least win me £50 a year?
Is Premium Bonds actually going to be worth it at £1000, would it at least win me £50 a year?
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Netherspark wrote: »I have £1000 that I could safely shift out of my current account and my initial thought was Premium Bonds, or I could put it into a 5% savings account which would get me £50 after a year.
Is Premium Bonds actually going to be worth it at £1000, would it at least win me £50 a year?
On average all in the gamble net under 1.5% pa. You can get a guaranteed 5% pa (where?)... :T
You feeling lucky, punk?0 -
It pays somewhat less than 1.3% so on average it would pay you £13, but since you cant get an average, odds are roughly 50/50 you'll get nothing or £25.0
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Netherspark wrote: »I have £1000 that I could safely shift out of my current account and my initial thought was Premium Bonds, or I could put it into a 5% savings account which would get me £50 after a year.
Is Premium Bonds actually going to be worth it at £1000, would it at least win me £50 a year?
Have a fiddle around with the MSE Premium Bond calculator.
https://www.moneysavingexpert.com/savings/premium-bonds-calculator/0 -
For smaller amounts it is "probably" not worth putting the money into PB's as statistically you may not get any returns for months / years. If it were me I would go with the best interest savings account I could find. But thats just me....."It's everybody's fault but mine...."0
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For that amount of money, my inclination would be a savings account rather than premium bonds, although maybe my judgement is clouded by having what I feel was worse than average luck on larger holdings of premium bonds over the years.
I too would like to know where you can get a 5% savings account . Or were you thinking of a regular savings account, which some banks offer, but usually with limited amounts that you can invest and on a monthly basis? If it's a regular saver with a monthly limit on what you can invest, then the average interest would be around half of the £50 as you haven't invested the full £1,000 for a full year.
Good for you in thinking on how to save it though, rather than leaving it in your current account where the propensity to spend it might be greater.0 -
Berkshire_Beancounter wrote: »I too would like to know where you can get a 5% savings account . Or were you thinking of a regular savings account, which some banks offer, but usually with limited amounts that you can invest and on a monthly basis? If it's a regular saver with a monthly limit on what you can invest, then the average interest would be around half of the £50 as you haven't invested the full £1,000 for a full year..
It's the 'Nationwide Flex Regular Saver', and yes now that you mention it I see you can pay in a max of £250 per month. So yeah it would take 4 months to pay it all in.0 -
On average all in the gamble net under 1.5% pa. You can get a guaranteed 5% pa (where?)... :T
A few places, Nationwide being one where you can get 5% on £2500. You can also use regular savers paying 5% too. Other accounts pay 3%Berkshire_Beancounter wrote: »I too would like to know where you can get a 5% savings account .
Surprised that someone on MSE for so long hasn't seen anything about 5% accounts, they've been available for a long time but are fading out a bit now. The links are at the top of the homepage.Remember the saying: if it looks too good to be true it almost certainly is.0
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