50k PB's won £50 time to pull out?

FlaatusGoat

As the title says really. £50 out of 50k is fairly catastrophic especially with inflation so high. I've really lost money on this month.

I could move it out into the 1.86% saver. However, I'm on the BR threshold and any additional interest well push me off the edge. Am I best taking this on the chin and withdrawing my PB's?

refluxer

£50/month (with a couple of £75 wins) is about what you would expect to win from £50k's-worth with average luck so if you're not happy with a 1.3% return, then yes - you're likely to do better in one of best easy access accounts at the moment,  but it definitely makes sense to take into account your tax situation first.

jimpwarsop

I assume you bought your PBs with your eyes open ?

Certainly I'm getting a better return with my PBs than I am from the market.

Albermarle

jimpwarsop said:

I assume you bought your PBs with your eyes open ?

Certainly I'm getting a better return with my PBs than I am from the market.

If so then you are having a lucky run. The approx return on PB's is 1.3% with average luck, and the more bonds you have the more likely you will get an average return. Currently there are a number of easy access accounts paying 1.75% , or even a bit more. 

mebu60

jimpwarsop said:

I assume you bought your PBs with your eyes open ?

Certainly I'm getting a better return with my PBs than I am from the market.

Ditto. Unless this month replicates last month's blank!  Plus it's tax-free and outside of SA.

Our capricious friend should embrace its randomness but most calendar years with the £50k I get at least the quoted average (currently 1.4% I believe so equivalent to 1.75% for BR).

And with spooky timing my ex-wife has just messaged to say that for the second consecutive month her much smaller holding has beaten her husband's larger stake. 

I will resist checking mine just now!! 

mebu60

OK, I didn't resist for long. £25. Following a blank last month.

July was £100, June £50, May £75. 

jimpwarsop

Albermarle said:

jimpwarsop said:

I assume you bought your PBs with your eyes open ?

Certainly I'm getting a better return with my PBs than I am from the market.

If so then you are having a lucky run. The approx return on PB's is 1.3% with average luck, and the more bonds you have the more likely you will get an average return. Currently there are a number of easy access accounts paying 1.75% , or even a bit more. 

I dont view stock market declines as "lucky".

Albermarle

(currently 1.4% I believe so equivalent to 1.75% for BR).

Officially 1.4% but to be realistic it is better to say - 1.3% + an infinitesimal chance of winning a Million.

FlaatusGoat

refluxer said:

£50/month (with a couple of £75 wins) is about what you would expect to win from £50k's-worth with average luck so if you're not happy with a 1.3% return, then yes - you're likely to do better in one of best easy access accounts at the moment,  but it definitely makes sense to take into account your tax situation first.

So if I'm at the BR threshold, better just knuckle down on PB's as any interest that puts me over 50k will be taxed galore?

southone

After winning nothing I today pull half my holding out will put in saving account., I was winning more last year before the so called prize rate rise

InvesterJones

FlaatusGoat said:

refluxer said:

£50/month (with a couple of £75 wins) is about what you would expect to win from £50k's-worth with average luck so if you're not happy with a 1.3% return, then yes - you're likely to do better in one of best easy access accounts at the moment,  but it definitely makes sense to take into account your tax situation first.

So if I'm at the BR threshold, better just knuckle down on PB's as any interest that puts me over 50k will be taxed galore?

Any interest that puts you over 50K won't be taxed immediately - only when it itself starts to earn interest (because it's outside of PB now) will you need to consider personal savings allowance and so on.