NS&I Income Bonds Vs Premium Bonds ?

bp5678

I have almost £30k in a Goldman Sachs Marcus account. Due to interest levels dropping, I want to move my money to either NS&I Income Bonds or Premium Bonds.
Which would you recommend for maximising the amount of money I receive back (either as interest or from "winning" in the case of premium bonds)?

RG2015

bp5678 said:

I have almost £30k in a Goldman Sachs Marcus account. Due to interest levels dropping, I want to move my money to either NS&I Income Bonds or Premium Bonds.
Which would you recommend for maximising the amount of money I receive back (either as interest or from "winning" in the case of premium bonds)?

Are you feeling lucky?

bp5678

RG2015 said:

bp5678 said:

I have almost £30k in a Goldman Sachs Marcus account. Due to interest levels dropping, I want to move my money to either NS&I Income Bonds or Premium Bonds.
Which would you recommend for maximising the amount of money I receive back (either as interest or from "winning" in the case of premium bonds)?

Are you feeling lucky?

Hmm not sure. I'd like to make my decision based off stats rather than gut feel. I appreciate I could be very lucky or unlucky with premium bonds, but mathematically-speaking, on average would I expect to make more from premium bonds or NS&I income bonds?

wizzards

You can see the odds for the premium bonds using the calculator dependent on your stake.
https://www.moneysavingexpert.com/savings/premium-bonds-calculator/
There is no guarantee.  Whereas with NS & I you know what you will get.  Either Income bonds currently at 1.16 % taxable or Direct saver at 1%.   The advantage of premium bonds is the winnings are tax free. 
Its hard to recommend one over the other.  Both have advantages and disadvantages.  The main difference being if you make enough cash elsewhere to be subject to any tax etc.

colsten

wizzards said:

Whereas with NS & I you know what you will get

Premium Bonds are an NS&I product 

wizzards

colsten said:

wizzards said:

Whereas with NS & I you know what you will get

Premium Bonds are an NS&I product 

Very funny.  But true !!  But you don't know what you get with Premium bonds prize wize unless you are gifted somehow and can predict the future or have special powers !!.    But yes they are all NS & I products.

Stubod

...all things being equal, if I had the max amount (£50k), I would go with PBs, if I had £30k I would go with Income Bonds.....but that's just me....

coachman12

bp5678 said:

I have almost £30k in a Goldman Sachs Marcus account. Due to interest levels dropping, I want to move my money to either NS&I Income Bonds or Premium Bonds.
Which would you recommend for maximising the amount of money I receive back (either as interest or from "winning" in the case of premium bonds)?

Your decision,bp,of course, but I am biased by my long association with Income Bonds and I will stick with them as opposed to Premium Bonds. Of course, you can split your savings between the two options. Whatever you choose, I wish you lots of luck ( that you'll win a Premium Bond prize ; or  that the Treasury does not decide to cut the present Income Bond's 1.6%    ). 

RG2015

coachman12 said:

bp5678 said:

I have almost £30k in a Goldman Sachs Marcus account. Due to interest levels dropping, I want to move my money to either NS&I Income Bonds or Premium Bonds.
Which would you recommend for maximising the amount of money I receive back (either as interest or from "winning" in the case of premium bonds)?

Your decision,bp,of course, but I am biased by my long association with Income Bonds and I will stick with them as opposed to Premium Bonds. Of course, you can split your savings between the two options. Whatever you choose, I wish you lots of luck ( that you'll win a Premium Bond prize ; or  that the Treasury does not decide to cut the present Income Bond's 1.6%    ). 

You'll get some stick for the 1.6% typo.

badger09

RG2015 said:

coachman12 said:

bp5678 said:

I have almost £30k in a Goldman Sachs Marcus account. Due to interest levels dropping, I want to move my money to either NS&I Income Bonds or Premium Bonds.
Which would you recommend for maximising the amount of money I receive back (either as interest or from "winning" in the case of premium bonds)?

Your decision,bp,of course, but I am biased by my long association with Income Bonds and I will stick with them as opposed to Premium Bonds. Of course, you can split your savings between the two options. Whatever you choose, I wish you lots of luck ( that you'll win a Premium Bond prize ; or  that the Treasury does not decide to cut the present Income Bond's 1.6%    ). 

You'll get some stick for the 1.6% typo.

Again

Thrugelmir

bp5678 said:

I have almost £30k in a Goldman Sachs Marcus account. Due to interest levels dropping, I want to move my money to either NS&I Income Bonds or Premium Bonds.
Which would you recommend for maximising the amount of money I receive back (either as interest or from "winning" in the case of premium bonds)?

Maximising is Income Bonds. Though the gain is unlikely to be startling with all returns so low and barely above inflation.