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Premium Bonds Vs ??
Options
Comments
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InvesterJones said:Since the aim is to use the money in less than 10 years then you're correct shares are probably too volatile. Which leaves you with bonds, savings, and premium bonds as mainstream options.Premium bonds rates are variable and adjusted much like current savings accounts to make sure they are not too competitive - on top of that the return is not guaranteed, so while they're a lot better than gambling, they're not suitable for something you need certainty over. A top rate savings account will likely beat them and be guaranteed - you could also consider a notice (e.g. 30 days) or limited access (e.g. single access) account since you will likely make a single large withdrawal after consideration.You haven't mentioned tax status or whether you've used any of this year's ISA allowance - if not then you can shelter nearly all of it and maybe the rest could be organised to maximise the use of personal savings allowances for example. If you don't have any allowances remaining then premium bonds make a little more sense in terms of their ease of access.I think the other thing that would be helpful would be to sit down and work out what your current trajectory is in terms of when you are likely to be able to buy - if it's really quite a distant (6-10yr) prospect then you could maybe consider a fund that blends shares and bonds.InvesterJones said:Since the aim is to use the money in less than 10 years then you're correct shares are probably too volatile. Which leaves you with bonds, savings, and premium bonds as mainstream options.Premium bonds rates are variable and adjusted much like current savings accounts to make sure they are not too competitive - on top of that the return is not guaranteed, so while they're a lot better than gambling, they're not suitable for something you need certainty over. A top rate savings account will likely beat them and be guaranteed - you could also consider a notice (e.g. 30 days) or limited access (e.g. single access) account since you will likely make a single large withdrawal after consideration.You haven't mentioned tax status or whether you've used any of this year's ISA allowance - if not then you can shelter nearly all of it and maybe the rest could be organised to maximise the use of personal savings allowances for example. If you don't have any allowances remaining then premium bonds make a little more sense in terms of their ease of access.I think the other thing that would be helpful would be to sit down and work out what your current trajectory is in terms of when you are likely to be able to buy - if it's really quite a distant (6-10yr) prospect then you could maybe consider a fund that blends shares and bonds.InvesterJones said:Since the aim is to use the money in less than 10 years then you're correct shares are probably too volatile. Which leaves you with bonds, savings, and premium bonds as mainstream options.Premium bonds rates are variable and adjusted much like current savings accounts to make sure they are not too competitive - on top of that the return is not guaranteed, so while they're a lot better than gambling, they're not suitable for something you need certainty over. A top rate savings account will likely beat them and be guaranteed - you could also consider a notice (e.g. 30 days) or limited access (e.g. single access) account since you will likely make a single large withdrawal after consideration.You haven't mentioned tax status or whether you've used any of this year's ISA allowance - if not then you can shelter nearly all of it and maybe the rest could be organised to maximise the use of personal savings allowances for example. If you don't have any allowances remaining then premium bonds make a little more sense in terms of their ease of access.I think the other thing that would be helpful would be to sit down and work out what your current trajectory is in terms of when you are likely to be able to buy - if it's really quite a distant (6-10yr) prospect then you could maybe consider a fund that blends shares and bonds.InvesterJones said:Since the aim is to use the money in less than 10 years then you're correct shares are probably too volatile. Which leaves you with bonds, savings, and premium bonds as mainstream options.Premium bonds rates are variable and adjusted much like current savings accounts to make sure they are not too competitive - on top of that the return is not guaranteed, so while they're a lot better than gambling, they're not suitable for something you need certainty over. A top rate savings account will likely beat them and be guaranteed - you could also consider a notice (e.g. 30 days) or limited access (e.g. single access) account since you will likely make a single large withdrawal after consideration.You haven't mentioned tax status or whether you've used any of this year's ISA allowance - if not then you can shelter nearly all of it and maybe the rest could be organised to maximise the use of personal savings allowances for example. If you don't have any allowances remaining then premium bonds make a little more sense in terms of their ease of access.I think the other thing that would be helpful would be to sit down and work out what your current trajectory is in terms of when you are likely to be able to buy - if it's really quite a distant (6-10yr) prospect then you could maybe consider a fund that blends shares and bonds.InvesterJones said:Since the aim is to use the money in less than 10 years then you're correct shares are probably too volatile. Which leaves you with bonds, savings, and premium bonds as mainstream options.Premium bonds rates are variable and adjusted much like current savings accounts to make sure they are not too competitive - on top of that the return is not guaranteed, so while they're a lot better than gambling, they're not suitable for something you need certainty over. A top rate savings account will likely beat them and be guaranteed - you could also consider a notice (e.g. 30 days) or limited access (e.g. single access) account since you will likely make a single large withdrawal after consideration.You haven't mentioned tax status or whether you've used any of this year's ISA allowance - if not then you can shelter nearly all of it and maybe the rest could be organised to maximise the use of personal savings allowances for example. If you don't have any allowances remaining then premium bonds make a little more sense in terms of their ease of access.I think the other thing that would be helpful would be to sit down and work out what your current trajectory is in terms of when you are likely to be able to buy - if it's really quite a distant (6-10yr) prospect then you could maybe consider a fund that blends shares and bonds.0
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Do we pay tax on interest from ISA’s please? As you can tell I’m not too financial savvy, brought up to save for what we want 🤷♀️0
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masonic said:Mintyrose said:Do we pay tax on interest from ISA’s please? As you can tell I’m not too financial savvy, brought up to save for what we want 🤷♀️0
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Mintyrose said:masonic said:Mintyrose said:Do we pay tax on interest from ISA’s please? As you can tell I’m not too financial savvy, brought up to save for what we want 🤷♀️
Bear in mind that nobody actually knows if the allowance will drop in future, it's all just rumours at this stage.1 -
Also thinking if I am maximizing my returns, although if I were not a higher rate taxpayer, I would likely have it in a savings account instead.
I have £50,000 and won £200 in March, £100 in April, and £0 for May.
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Mintyrose said:masonic said:Mintyrose said:Do we pay tax on interest from ISA’s please? As you can tell I’m not too financial savvy, brought up to save for what we want 🤷♀️
ISAs & tax-free savings — MoneySavingExpert Forum1
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