Santander eSaver Rate increase to 3.25%

dealyboy

Fingerbobs said:

gizz_10 said:

Fingerbobs said:

jungleboy123 said:

still below boe rate of 4.25%... very annoying to get near this rate have to fix, but with floater money in CA getting nothing i guess this is the best we're gonna get.

I wish I still had my Family Building Society Windfall Bonds. They'd be paying 4.25% now!

I still have mine but never seem to win anything - I'm now holding 80k.  When i first invested only 10k I won 1k within a few months - back in 2017.  Since then I have increased holdings but not won a sausage.  However the interest rate is always competitive so at least I am getting something for the 80k

You did well! I held £70k for probably a couple of years, never won a sausage, and when the interest rate dropped to 0.1% I cashed them in. I still keep £5k in the Halifax at a poultry interest rate for their Savers Prize Draw. Never won that either! 

@Fingerbobs ... you could have invested in some premium bonds and got no interest whilst not winning anything ... so look on the bright side 

Band7

dealyboy said:

Fingerbobs said:

gizz_10 said:

Fingerbobs said:

jungleboy123 said:

still below boe rate of 4.25%... very annoying to get near this rate have to fix, but with floater money in CA getting nothing i guess this is the best we're gonna get.

I wish I still had my Family Building Society Windfall Bonds. They'd be paying 4.25% now!

I still have mine but never seem to win anything - I'm now holding 80k.  When i first invested only 10k I won 1k within a few months - back in 2017.  Since then I have increased holdings but not won a sausage.  However the interest rate is always competitive so at least I am getting something for the 80k

You did well! I held £70k for probably a couple of years, never won a sausage, and when the interest rate dropped to 0.1% I cashed them in. I still keep £5k in the Halifax at a poultry interest rate for their Savers Prize Draw. Never won that either! 

@Fingerbobs ... you could have invested in some premium bonds and got no interest whilst not winning anything ... so look on the bright side 

I did “invest” the max in Premium Bonds and got a return equivalent to 3.1% taxable for the current tax year. I know it is pot luck but I am quite happy to continue the low risk gamble even though I could now get a higher AER in easy access savings accounts

Fingerbobs

Band7 said:

dealyboy said:

Fingerbobs said:

gizz_10 said:

Fingerbobs said:

jungleboy123 said:

still below boe rate of 4.25%... very annoying to get near this rate have to fix, but with floater money in CA getting nothing i guess this is the best we're gonna get.

I wish I still had my Family Building Society Windfall Bonds. They'd be paying 4.25% now!

I still have mine but never seem to win anything - I'm now holding 80k.  When i first invested only 10k I won 1k within a few months - back in 2017.  Since then I have increased holdings but not won a sausage.  However the interest rate is always competitive so at least I am getting something for the 80k

You did well! I held £70k for probably a couple of years, never won a sausage, and when the interest rate dropped to 0.1% I cashed them in. I still keep £5k in the Halifax at a poultry interest rate for their Savers Prize Draw. Never won that either! 

@Fingerbobs ... you could have invested in some premium bonds and got no interest whilst not winning anything ... so look on the bright side 

I did “invest” the max in Premium Bonds and got a return equivalent to 3.1% taxable for the current tax year. I know it is pot luck but I am quite happy to continue the low risk gamble even though I could now get a higher AER in easy access savings accounts

I thought all Premium Bond prizes were tax-free? 

I had a max holding for a number of years and averaged a return of about 1.2% PA in prizes. I've ditched them now, too. 

refluxer

Fingerbobs said:

Band7 said:

I did “invest” the max in Premium Bonds and got a return equivalent to 3.1% taxable for the current tax year. I know it is pot luck but I am quite happy to continue the low risk gamble even though I could now get a higher AER in easy access savings accounts

I thought all Premium Bond prizes were tax-free? 

I had a max holding for a number of years and averaged a return of about 1.2% PA in prizes. I've ditched them now, too. 

Yes, Premium Bond prizes are tax-free. I think Band7 is saying that he's achieved the same rate in prizes as if he'd saved that money elsewhere at 3.1% during the current tax year and paid tax on it.

You're likely to get a higher rate than 1.2% if you have £50k in PBs now - I got an overall prize rate of 2.90% during this past tax year although that did include one bigger-than-average (£500) win, to be fair.

Band7

refluxer said:

Fingerbobs said:

Band7 said:

I did “invest” the max in Premium Bonds and got a return equivalent to 3.1% taxable for the current tax year. I know it is pot luck but I am quite happy to continue the low risk gamble even though I could now get a higher AER in easy access savings accounts

I thought all Premium Bond prizes were tax-free? 

I had a max holding for a number of years and averaged a return of about 1.2% PA in prizes. I've ditched them now, too. 

Yes, Premium Bond prizes are tax-free. I think Band7 is saying that he's achieved the same rate in prizes as if he'd saved that money elsewhere at 3.1% during the current tax year and paid tax on it.

You're likely to get a higher rate than 1.2% if you have £50k in PBs now - I got an overall prize rate of 2.90% during this past tax year although that did include one bigger-than-average (£500) win, to be fair.

That's correct.

If you are a BR tax payer and have bust your £1,000 PSA, 2.9% in PBs equates to 3.6% taxable. Much more than you could have got in standard easy access over the last year. 

The advantage of a 2.9% return for HR tax payers would be even higher - 4.8%. That's even better than some multi-year fixed term.

Though as I said, it's a gamble. You might get less, and you might get more.

NB. it's 'she', not 'he' 

Band7

Fingerbobs said:

Band7 said:

dealyboy said:

Fingerbobs said:

gizz_10 said:

Fingerbobs said:

jungleboy123 said:

still below boe rate of 4.25%... very annoying to get near this rate have to fix, but with floater money in CA getting nothing i guess this is the best we're gonna get.

I wish I still had my Family Building Society Windfall Bonds. They'd be paying 4.25% now!

I still have mine but never seem to win anything - I'm now holding 80k.  When i first invested only 10k I won 1k within a few months - back in 2017.  Since then I have increased holdings but not won a sausage.  However the interest rate is always competitive so at least I am getting something for the 80k

You did well! I held £70k for probably a couple of years, never won a sausage, and when the interest rate dropped to 0.1% I cashed them in. I still keep £5k in the Halifax at a poultry interest rate for their Savers Prize Draw. Never won that either! 

@Fingerbobs ... you could have invested in some premium bonds and got no interest whilst not winning anything ... so look on the bright side 

I did “invest” the max in Premium Bonds and got a return equivalent to 3.1% taxable for the current tax year. I know it is pot luck but I am quite happy to continue the low risk gamble even though I could now get a higher AER in easy access savings accounts

I thought all Premium Bond prizes were tax-free? 

I had a max holding for a number of years and averaged a return of about 1.2% PA in prizes. I've ditched them now, too. 

Yep, they are tax free. Which makes them doubly attractive to those who bust their PSA and who have maxed their ISA allowance. 

1.2% was still a decent return when easy access accounts paid less than 1%. 

PBs are obviously not for those who seek a predictable return - so if you are looking for that, you have made the right decision to take your money elsewhere.

refluxer

Band7 said:

NB. it's 'she', not 'he' 

Apologies ! I normally play it safe and go for 'they', but forgot this time

Fingerbobs

refluxer said:

Fingerbobs said:

Band7 said:

I did “invest” the max in Premium Bonds and got a return equivalent to 3.1% taxable for the current tax year. I know it is pot luck but I am quite happy to continue the low risk gamble even though I could now get a higher AER in easy access savings accounts

I thought all Premium Bond prizes were tax-free? 

I had a max holding for a number of years and averaged a return of about 1.2% PA in prizes. I've ditched them now, too. 

Yes, Premium Bond prizes are tax-free. I think Band7 is saying that he's achieved the same rate in prizes as if he'd saved that money elsewhere at 3.1% during the current tax year and paid tax on it.

Ah yes I see what she was getting at now. 

dealyboy

refluxer said:

Fingerbobs said:

Band7 said:

I did “invest” the max in Premium Bonds and got a return equivalent to 3.1% taxable for the current tax year. I know it is pot luck but I am quite happy to continue the low risk gamble even though I could now get a higher AER in easy access savings accounts

I thought all Premium Bond prizes were tax-free? 

I had a max holding for a number of years and averaged a return of about 1.2% PA in prizes. I've ditched them now, too. 

Yes, Premium Bond prizes are tax-free. I think Band7 is saying that he's achieved the same rate in prizes as if he'd saved that money elsewhere at 3.1% during the current tax year and paid tax on it.

You're likely to get a higher rate than 1.2% if you have £50k in PBs now - I got an overall prize rate of 2.90% during this past tax year although that did include one bigger-than-average (£500) win, to be fair.

... what with @Fingerbobs luck? ... Yoffy laughs ...   

nottsphil

refluxer said:

Band7 said:

NB. it's 'she', not 'he' 

Apologies ! I normally play it safe and go for 'they', but forgot this time

I had Band7 down as a nailed-on male! I can't explain why though, I mean it's not as if I also presumed she is white, for example.