ISA Advice for a student please

adamt

Hi,

I have £500 in premium bonds which i have had for 18months, but have only won £50. i used martins premium bonds calculator and i have 35% chance of winning £50 again, whereas if i put it in a isa, i would get £48 for the first year, and so on.

My question is, does it seem wise to put the £500 in an isa, instead of leaving it in premium bonds?

Also what would you say is the best ISA account available, i have been looking at Icesave which offer 6.1%, but this can change, cant it?

thanks

Liz_the_Whizz

hi adamt,

It really depends what kind of person you are. Some people like the thrill of premium bonds and the possibility it presents for a big win.

Problem is that anyone can experience a run of below average luck. If you don't win, premium bonds don't pay interest so you risk getting no return at all on your money.

If you don't feel lucky, then the slow and steady ISA with annual tax-free interest is the better option. But with £500 capital, it's not going to change your life.

Why not cash in half your premium bonds, stick it in an ISA and let us know which did best in 10 years time?