Is it better putting £18k in a Marcus account or in Premium Bonds?

bp5678

I have £18k saved. Which is the best account for me to put this in to maximise the amount of money I can make?

eskbanker

Marcus pays 1.35% AER.

Premium Bonds pay an unpredictable amount somewhere between £0 and £1m+, but with average luck you'd expect about 1.25% annually over the long term, albeit this will fluctuate.

Your tax status affects the comparison, as PB income is tax-free, whereas interest is taxed at your marginal rate, but only if you're using up your personal savings allowance.

DCFC79

Are you likely to need access to it in the future ?

Fingerbobs

Marcus is most likely to give you the higher return, but Premium Bonds offer you a slim chance of making a lot more.

Malkytheheed

bp5678 wrote: »

I have £18k saved. Which is the best account for me to put this in to maximise the amount of money I can make?

To MAXIMISE the amount of money you will make from £18k then you need to invest it in the stock market. Or use it to somehow else to make you more money. 1.x% savings account and premium bonds certainly won't maximise your money.

Yorkshire_Pud

bp5678 wrote: »

I have £18k saved. Which is the best account for me to put this in to maximise the amount of money I can make?

Go 50/50 and after 12 months review and see how you feel about each investment.

Don’t let premium bonds get you into a gambling mind set though.

Sea_Shell

Are you a "bird in the hand is worth 2 in the bush" person?

If so, go with Marcus! As you KNOW what rate you're getting.

If not, buy PBs or invest it.

born_again

How important is that £18K interest to you?
Very = Marcus
None = PB's.

colsten

Yorkshire_Pud wrote: »

Go 50/50 and after 12 months review and see how you feel about each investment.

Worth noting though that neither the Marcus account nor Premium Bonds count as investments. Marcus is savings, PB is very low risk gambling. Both are suitable for short term parking of cash as they are both instant access. Investments involve funds, and possibly shares, as well as platform and other costs, and require a longer term commitment, ideally 7+ years.

NB. Nothing wrong with having all 3 - Marcus, PBs and investments if you have got a decent sum of money.

greyteam1959

Yorkshire_Pud wrote: »

Go 50/50 and after 12 months review and see how you feel about each investment.

Don’t let premium bonds get you into a gambling mind set though.

I'm with Yorkshire Pud........50 / 50