NS&I to increase the Premium Bond prize rate to 3.15% – here's all you need to know

eskbanker

Richard1212 said:

BooJewels said:

Richard1212 said:

Personally, I have avoided Premium Bonds all my life. They are no different to Camelot's National Lottery. Blimey, there's a really good chance of winning at online poker tables or picking the winner of the 3.30 at Ascot at odds of 10/1.

They are different, in that you don't actually lose your stake - it's still there to withdraw again at any time.  Plus the winnings are tax free, which is a big draw for some savers, as @Band7 just outlined.

But the chances of winning on Premium Bonds are so small----the only certainty Is that your money will go down in value every day they remain as Premium Bonds. 

Inflation obviously eats into real terms value of any savings (except rare index-linked ones), but where do you recommend people put money that needs to be accessible and without risk of capital loss?

Slinky

Richard1212 said:

BooJewels said:

Richard1212 said:

Personally, I have avoided Premium Bonds all my life. They are no different to Camelot's National Lottery. Blimey, there's a really good chance of winning at online poker tables or picking the winner of the 3.30 at Ascot at odds of 10/1.

They are different, in that you don't actually lose your stake - it's still there to withdraw again at any time.  Plus the winnings are tax free, which is a big draw for some savers, as @Band7 just outlined.

But the chances of winning on Premium Bonds are so small----the only certainty Is that your money will go down in value every day they remain as Premium Bonds. 

As they will in any savings account currently on offer. It's just a question of degree.

RedImp_2

BooJewels said:

Richard1212 said:

Personally, I have avoided Premium Bonds all my life. They are no different to Camelot's National Lottery. Blimey, there's a really good chance of winning at online poker tables or picking the winner of the 3.30 at Ascot at odds of 10/1.

They are different, in that you don't actually lose your stake - it's still there to withdraw again at any time.  Plus the winnings are tax free, which is a big draw for some savers, as @Band7 just outlined.

And your bonds once bought are in every draw unlike Lottery 

Richard1212

eskbanker said:

Richard1212 said:

BooJewels said:

Richard1212 said:

Personally, I have avoided Premium Bonds all my life. They are no different to Camelot's National Lottery. Blimey, there's a really good chance of winning at online poker tables or picking the winner of the 3.30 at Ascot at odds of 10/1.

They are different, in that you don't actually lose your stake - it's still there to withdraw again at any time.  Plus the winnings are tax free, which is a big draw for some savers, as @Band7 just outlined.

But the chances of winning on Premium Bonds are so small----the only certainty Is that your money will go down in value every day they remain as Premium Bonds. 

Inflation obviously eats into real terms value of any savings (except rare index-linked ones), but where do you recommend people put money that needs to be accessible and without risk of capital loss?

In answer to your question in trying to find help, I'll try to make it easy for you : anywhere where the inflation loss is minimised as compared to the premium bonds lottery. Say any of the top 5 Easy Access or Fixed Rate Savings Accounts.

eskbanker

Richard1212 said:

eskbanker said:

Richard1212 said:

BooJewels said:

Richard1212 said:

Personally, I have avoided Premium Bonds all my life. They are no different to Camelot's National Lottery. Blimey, there's a really good chance of winning at online poker tables or picking the winner of the 3.30 at Ascot at odds of 10/1.

They are different, in that you don't actually lose your stake - it's still there to withdraw again at any time.  Plus the winnings are tax free, which is a big draw for some savers, as @Band7 just outlined.

But the chances of winning on Premium Bonds are so small----the only certainty Is that your money will go down in value every day they remain as Premium Bonds. 

Inflation obviously eats into real terms value of any savings (except rare index-linked ones), but where do you recommend people put money that needs to be accessible and without risk of capital loss?

In answer to your question in trying to find help, I'll try to make it easy for you : anywhere where the inflation loss is minimised as compared to the premium bonds lottery. Say any of the top 5 Easy Access or Fixed Rate Savings Accounts.

Fixed term products obviously aren't a like for like comparison in terms of accessibility, and the leading easy access savings accounts (beyond the niche products with heavily-capped balances) are all below the PB headline rate, even without taking into account the fact that PB returns are tax-free, although the 'expected return' factor does narrow the gap.

Don't get me wrong, I'm not evangelising about them though, and they're undoubtedly not for everyone, but those choosing to dismiss them ought to do so for valid reasons rather than because they haven't managed to understand the product or its place in the market!

Band7

Richard1212 said:

eskbanker said:

Richard1212 said:

BooJewels said:

Richard1212 said:

Personally, I have avoided Premium Bonds all my life. They are no different to Camelot's National Lottery. Blimey, there's a really good chance of winning at online poker tables or picking the winner of the 3.30 at Ascot at odds of 10/1.

They are different, in that you don't actually lose your stake - it's still there to withdraw again at any time.  Plus the winnings are tax free, which is a big draw for some savers, as @Band7 just outlined.

But the chances of winning on Premium Bonds are so small----the only certainty Is that your money will go down in value every day they remain as Premium Bonds. 

Inflation obviously eats into real terms value of any savings (except rare index-linked ones), but where do you recommend people put money that needs to be accessible and without risk of capital loss?

In answer to your question in trying to find help, I'll try to make it easy for you : anywhere where the inflation loss is minimised as compared to the premium bonds lottery. Say any of the top 5 Easy Access or Fixed Rate Savings Accounts.

This might be true for yourself but is not for many others. Can I suggest you read back to my earlier post in this thread.