What to do with big premium bond win

Magsy99

Hello.

Been years since I was here

So I had a big win on my bonds and dont know what to do with it.

My isa is maxxed, no mortgage and am a basic rate taxpayer and our house is up for sale.

House market is sluggish and that win was to add to my house sale to buy a bungalow. Its in our current account but it could be sitting there for a while.

I dont know whether to put the whole lot in 1 account or divide it up to several.

I would rather deal with 1 savings account, with easy access. Its a lot of money though to move at once.

Advice please

X

wmb194

https://forums.moneysavingexpert.com/discussion/6684896/what-to-do-with-big-premium-bond-win

How big is big? Depending on your bank you can often move between £25k and £100k per day by faster payments. The simplest, least aggravating way would be to open a savings account with your bank but it's unlikely that the rate will be the most competitive.

Easy access savings accounts:

https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?sort-filter=standard-order

El_Torro

It sounds like the best thing to do is keep the money in cash, not put it into investments. Unless not all of the money will be used for the house move.

There are various websites which track savings accounts and which have the best interest rates currently. For example you can look here: https://moneyfactscompare.co.uk/savings-accounts/

Remember that you want all your money covered by the FSCS protection, so no more than £120k in one banking group.

Depending on how much money you have won the easiest place to put it might be in NS&I, where all your deposits are protected, not a £120k limit.

Albermarle

 Unless not all of the money will be used for the house move.

OP - If this is the case then you can consider various options for any 'spare money' What to do with it will hinge to a large extent, on when you might need the money in future. Also your age and employment/tax status will have to be taken into account.

If you have really won a lot ( the Big one ?) you might consider taking some professional advice.

tacpot12

I've recently opened a Tesco Bank Easy Access savings account for money that I can't put into an ISA. Rate is ok at 4.24%. It's not the best, but I've heard of Tesco, and any high rate also means more chance I exceed the Personal Savings Allowance and have to pay tax on the interest.

mon3ysav3r

https://forums.moneysavingexpert.com/discussion/comment/82152560#Comment_82152560

Tesco Bank is owned by Barclays Bank UK PLC, from 1st November 2024.

surreysaver

https://forums.moneysavingexpert.com/discussion/comment/82152246#Comment_82152246

Just to clarify, this poster doesn't mean keep it literally in cash! Definitely keep it ina bank/building society, not under the mattress!

poseidon1

https://forums.moneysavingexpert.com/discussion/6684896/what-to-do-with-big-premium-bond-win

If the win is big enough that the £120k usual FSCS protection is insufficient for your purposes, and you don't want to mess around with multiple saving accounts, then why not give it straight back to NSI and place on one of their instant access savings accounts paying 3.75% or 3.69%?

Not the best rates available, but certainly far better than your current account, and comes with a handy UK government backed gurantee upto £2 million.

https://www.nsandi.com/easy-access-saving

Magsy99

Thanks everyone. 🫶

It wasnt THE big one but the next biggest. £100,000. It means we can move into a bungalow which my husband will need in future due to his parkinsons (and my knees lol.)

I already have savings that earn interest and whatever i do with this win and interest will take me over the psa and the other one... the starting rate one.

I know i will pay tax but its better than just sitting in a current acct. Goodness knows if or when ill sell my house so might as well get something.

I wasnt sure id be able to move it into just one account so good to know that i can.

Ill read through the comments again and let you know the outcome.

x

fuzzzzy

I have only ever won piddling amounts on premium bonds, but every so often I do think maybe I should open an NS&I direct saver to have in readiness just in case I ever do win the big one.

surreysaver

I am pleased for you, OP. You'll have financial security and less to worry about, and it should enable you to concentrate on the things which matter