Premium bonds

Albermarle

On average someone with the full £50,000 in Premium Bonds would win a Million every 90,000 years .

garyelder

Premium bonds seem absolutely a waste of time I’m fortunate my wife and I have the full amount but very limited wins I’m going to give it another month see if the interest rates go up and I will probably lock in with Atom 2.20% 2 years if interest rates go up probably there rate will be near 2.50%

Albermarle

garyelder said:

Premium bonds seem absolutely a waste of time I’m fortunate my wife and I have the full amount but very limited wins I’m going to give it another month see if the interest rates go up and I will probably lock in with Atom 2.20% 2 years if interest rates go up probably there rate will be near 2.50%

Can still be useful for higher rate taxpayers .

RG2015

garyelder said:

Premium bonds seem absolutely a waste of time I’m fortunate my wife and I have the full amount but very limited wins I’m going to give it another month see if the interest rates go up and I will probably lock in with Atom 2.20% 2 years if interest rates go up probably there rate will be near 2.50%

Putting inflation to one side for the moment, the stats on the full holding are as follows.

In an easy access account (Chase @ 1.50%) will yield £750 p.a.
In a one year account (Al Rayan @ 1.96%) will yield £980 p.a.
PB will on average yield 0.90% or £450 p.a.

Hence the monthly cost of the PB lottery is £25 for easy access or £44 compared with no access for 12 months.

george4064

With £100 per month to save, your best bet is to utilise the top paying Regular Saving (RS) account.

Best online RS accounts pay around 3.3%, more info here: https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

eskbanker

RG2015 said:

garyelder said:

Premium bonds seem absolutely a waste of time I’m fortunate my wife and I have the full amount but very limited wins I’m going to give it another month see if the interest rates go up and I will probably lock in with Atom 2.20% 2 years if interest rates go up probably there rate will be near 2.50%

Putting inflation to one side for the moment, the stats on the full holding are as follows.

In an easy access account (Chase @ 1.50%) will yield £750 p.a.
In a one year account (Al Rayan @ 1.96%) will yield £980 p.a.
PB will on average yield 0.90% or £450 p.a.

Hence the monthly cost of the PB lottery is £25 for easy access or £44 compared with no access for 12 months.

But as @Albermarle points out, tax may come into the equation too, if some or all of Gary's savings would generate a tax liability if away from PBs....

chucknorris

Albermarle said:

garyelder said:

Premium bonds seem absolutely a waste of time I’m fortunate my wife and I have the full amount but very limited wins I’m going to give it another month see if the interest rates go up and I will probably lock in with Atom 2.20% 2 years if interest rates go up probably there rate will be near 2.50%

Can still be useful for higher rate taxpayers .

PB's are well worth it for me because they help keep me out of the 60% tax band, along with NSI index linked certs, and my ISA and pension contributions (I invest all my part time salary into pension).