NS&I still worth it?

Topaz99

I know Martin has mentioned this in the past, but wondered if the stance had changed at all, as I have heard conflicting things, from they are good (and safe) to not worth the odds of winning anything on Premium Bonds as interest?

I did have some Premium Bonds years ago and withdrew as it wasn't much, but now I could afford to invest the full £50k limit (if it was worth it?)

Are they still an attractive proposition? and if so, do you have easy quick access if you need to withdraw?

Thank you for any help.

polymaff

If you are writing about Premium Bonds - then say so.


If yes, and you are investing a substantial sum, they return about 1.26% - tax-free - at present and are easy access.


Your decision, though.

Topaz99

polymaff wrote: »

If you are writing about Premium Bonds - then say so..

Wow, sorry lol... I thought NSandI 'WAS' Premium Bonds? As mentioned, its been a while since I had these, but it was the monthly draw that I meant, and didn't realise they did anything else?

Sorry :cool:

lisyloo

NS&I do many good products.

If you mean premium bonds it’s best to say that.

Topaz99

EDITED! lol

ColdIron

Might be worth a read, I no longer hold PBs
https://www.moneysavingexpert.com/savings/premium-bonds/

LeafGreen

Sounds like you are talking about Premium Bonds.

The way I look at it:-

- The odds of any £1 bond winning a prize is 24,500 to 1.
- Each prize is probably going to be £25 (although could be more).
- Therefore, if you invest £50K, you might reasonably expect to win £50/month on average over time - i.e. £600/year which would equate to a 1.2% return.
- In practice over several years my monthly return on £50K has varied from 0 to 4 £25 prizes per month, but the average has been as expected.
- If you want lowest risk to capital and easy access, you are not going to get a much higher return anywhere else.
- Prize checking day is quite exciting (for a couple of seconds)
- There is a risk that you might average out at less than 1.2% but the chances of it being significantly less are very low given a reasonable period of time.
- Very very unlikely indeed, but might win a big prize one day (I did win £1000 a few years back).
- Prizes are tax free.

In theory investing your capital elsewhere will yield a much greater return but that is not guaranteed. If you don't want to take any risk then I think PBs are good.

Topaz99

grahamgoo wrote: »

Prize checking day is quite exciting (for a couple of seconds)

Haha, I remember doing this for myself and my wife each month!

colsten

If the £50K are your only savings, putting them into PBs is most probably not the smartest thing to do. If it's the cash part in a well-balanced portfolio, and if you can accept that you may have lower than average luck and an abysmal return (what they call "win"), it might be worth a punt.

A lot also depends on how long you can lock the money away.

Paul_DNAP

UPS: Cash is safe, backed by gov. No risk to capital. Slim chance of big prizes. Instant access.


DOWNS: Low median returns with no guaranteed rate, includes small chance of no return.

Brilley

I guess it depends on many things. What other savings investments do you have, how much can you put in, how risk adverse are you?
I would suggest that if you only have a small amount to put in and you have no other savings, then probably not, but if you have other savings / investments and you can afford to "max out" (ie £50k), then they may well suit....but that's just me....