NS&I still worth it?

davidwatts

Not the best option if the £50k is all or most of the money you have to save or invest; perhaps more attractive if it's part of a £1M personal portfolio that you have to manage! Assuming it's somewhere in the middle, you (literally) pays your money and takes your chances.

I'm not a higher rate tax payer but I deem having PBs worth it.

inflationbuster

Topaz99 wrote: »

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?

For the 18-19 financial year l had the full £50K premium bonds invested return was £950 1.9% tax free. Approximately £79.16 a month average return. I'm a 40% tax payer so felt it was worth it and have quick access to the cash if needed. I post my returns/performance monthly on the premium bonds thread. I get far better returns in the stock market but this is one of a number of rainy day pots.

Brilley

Topaz99 wrote: »

So in short, worth it or not? LOL

Yes, No, Maybe.....as per all the above good advice, it depends on your circumstances.....

AndyPK

I won a nice 3 digit sum this month.
And I don't have that much invested.


So I may as well withdraw the money now!

jimjames

Topaz99 wrote: »

So in short, worth it or not? LOL

If you can get 1.5% instant access elsewhere why bother unless you're a gambler that doesn't want to lose any of their stake. If you're prepared to risk some capital for a better return then I'd use investments instead.

polymaff

jimjames wrote: »

If you can get 1.5% instant access elsewhere why bother unless you're a gambler that doesn't want to lose any of their stake. If you're prepared to risk some capital for a better return then I'd use investments instead.

Tax, Jim, Tax.

webjaved

It would depend on your own circumstances on whether NS&I are worth it or not.

bowlhead99

jimjames wrote: »

If you can get 1.5% instant access elsewhere why bother unless you're a gambler that doesn't want to lose any of their stake. If you're prepared to risk some capital for a better return then I'd use investments instead.

In my own case, if I get instant access elsewhere at 1.5% as you suggest and then pay 40 or 45% or 60% marginal rate of tax on it, the 1.5% would translate to only 0.9% or 0.825% or 0.6% after I had paid the income tax due.

Whereas with PBs I can reasonably hope to win a couple of prizes a month on a little under £50k, and - with each of those prizes being worth £25 or more - the anticipated tax free rate of return of c. 1.2% is literally a third more net income than would be obtained from a (e.g.) 1.5% Marcus account after 40% tax and is potentially double what would be obtained from a Marcus account net of certain high marginal rates of tax.

As it happens I have a large tax bill to pay next year and so medium risk investments would be inappropriate for such a timescale; and yes I already have a couple of decent current accounts and regular savers for normal day to day savings, before you start down that road.