The Top Easy Access Savings Discussion Area

masonic

patpalloon said:

Zopa_Trooper said:

If you're paying tax on your savings, ISA's are a no-brainer.

What about Premium Bonds?

Not a no-brainer for basic rate taxpayers, if you have average luck. Based on a 10,000 simulation Monte Carlo analysis using September's prizes, median annual returns for a full holding would be 4.05% (equivalent to 5.06% taxed at BR), but lower for smaller holdings. Even with a full holding, 25% of people would get less than 3.4% (equivalent to 4.25%). I'll be sticking with Tandem.

aaj123

Rheumatoid said:

Zopa_Trooper said:

patpalloon said:

Zopa_Trooper said:

If you're paying tax on your savings, ISA's are a no-brainer.

What about Premium Bonds?

Gambling you mean? Why not stick the lot on black or red at a casino. Almost a 50/50 chance.

I've had a (singular) premium bond for 67 years (it was brought for me to celebrate my birth). Never won a penny. Wonder how much that £1 would be worth now?

Its not really gambling if you always get your stake back

Getting your fiat money stake back with no returns is really a disguised form of capital loss. But its a good illusion that does manage to convince many that a product is offering something without downside. 

chris_the_bee

Zopa_Trooper said:

patpalloon said:

Zopa_Trooper said:

If you're paying tax on your savings, ISA's are a no-brainer.

What about Premium Bonds?

Gambling you mean? Why not stick the lot on black or red at a casino. Almost a 50/50 chance.

I've had a (singular) premium bond for 67 years (it was brought for me to celebrate my birth). Never won a penny. Wonder how much that £1 would be worth now?

Courtesy of google:-

The British pound has lost 97% its value since 1956

A pound today only buys 3.131% of what it could buy back then. The inflation rate in 1956 was 5.10%.
£100 in 1956 is equivalent in purchasing power to about £3,193.71 today

aaj123

chris_the_bee said:

Zopa_Trooper said:

patpalloon said:

Zopa_Trooper said:

If you're paying tax on your savings, ISA's are a no-brainer.

What about Premium Bonds?

Gambling you mean? Why not stick the lot on black or red at a casino. Almost a 50/50 chance.

I've had a (singular) premium bond for 67 years (it was brought for me to celebrate my birth). Never won a penny. Wonder how much that £1 would be worth now?

Courtesy of google:-

The British pound has lost 97% its value since 1956

A pound today only buys 3.131% of what it could buy back then. The inflation rate in 1956 was 5.10%.
£100 in 1956 is equivalent in purchasing power to about £3,193.71 today

This gentlemen and ladies, is what fiat money is about. That's why everyone has to be given fiat (forced command) to hold and use it. 

masonic

chris_the_bee said:

Zopa_Trooper said:

patpalloon said:

Zopa_Trooper said:

If you're paying tax on your savings, ISA's are a no-brainer.

What about Premium Bonds?

Gambling you mean? Why not stick the lot on black or red at a casino. Almost a 50/50 chance.

I've had a (singular) premium bond for 67 years (it was brought for me to celebrate my birth). Never won a penny. Wonder how much that £1 would be worth now?

Courtesy of google:-

The British pound has lost 97% its value since 1956

A pound today only buys 3.131% of what it could buy back then. The inflation rate in 1956 was 5.10%.
£100 in 1956 is equivalent in purchasing power to about £3,193.71 today

The trick would have been to invest that pound in something that kept pace with inflation (though this is not the thread for considering those options). Even moving it between savings accounts would have allowed it to be worth a lot more than £1 today, but certainly a lot less than £3.2k.

subjecttocontract

allegro120 said:

patpalloon said:

Zopa_Trooper said:

If you're paying tax on your savings, ISA's are a no-brainer.

What about Premium Bonds?

They are definitely better than the lottery   PB is not for me, I prefer to know exactly how my cash is going to perform, however it's a good product for those who likes the element of surprise or gambling without any capital loss.

Let's also not forget it's just a bit of fun for those people for whom £50K is a mere drop in the ocean.......there are plenty of wealthy people around who don't worry about wether they can get a decent return from their PBs.

boingy

Zopa_Trooper said:

I've had a (singular) premium bond for 67 years (it was brought for me to celebrate my birth). Never won a penny. Wonder how much that £1 would be worth now?

Your £1 would be worth £20.53 today according to this:

https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator

Almost enough to buy a couple of pizzas.

inkydolphin

boingy said:

Zopa_Trooper said:

I've had a (singular) premium bond for 67 years (it was brought for me to celebrate my birth). Never won a penny. Wonder how much that £1 would be worth now?

Your £1 would be worth £20.53 today according to this:

https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator

Almost enough to buy a couple of pizzas.

Surely you mean invest in a couple of pizzas... 😉

BooJewels

My aunt found an old school savings account from the 1930s of her husbands and sent it off to whatever bank it had been passed over to in time and got £68 back with compounded interest from a few shillings.  So I was pretty excited to find the same thing of my Dad's from the late 1930s with 4 shillings in it.  Turned out to be with NS&I now - after 6 months of back and forth and a lot of form filling, I got exactly 20p back!  They don't apparently pay interest on amounts less than £1.

BTW:  I like my PBs.  I've done pretty well with them over 16 draws - increasingly so more recently - I've had a rolling return on my mid-range holding for the last year of 5.11% - a bit more than the average EA rate for the last 12 months.

snowqueen555

I recently moved to Chip, is anyone else sticking with them, they've gone form being front of the pack to mediocre.