Premium Bond Winner ?

garyelder · 4 May 2022 at 10:05AM

we have got 2 lots of 50k got 2 x £25 on one and the other 4 x £25 this month total £150
im tempted if interest rate go tomorrow as expected I may take my 50 k out and get a fixed bond for a year which should be well over 2%

I don’t pay tax as I don’t reach the 12 k mark
at some point the premium bond will have to raise there rate as people will be pulling out

jimexbox · 4 May 2022 at 10:14AM

Stargunner said:

SAC2334 said:

Ian_Brown_3 said:

£75 this month across two 50k holdings.

You would have been getting £125 interest in Chase on May 1 st on £100k

You would have to pay tax on that though, because your annual interest would take you over the £1000 max limit

The £125 was across two holdings of 50k each. So in separate names, same as holding two separate accounts in chase. Giving you a potential £134k tax free for Lower rate tax payers.

Plus giving you fsca protection on the lot.

garyelder · 4 May 2022 at 10:33AM

Am I right in saying you can earn upto 5k interest if you don’t reach your tax code, I have a rental property which we get 5 k each which is my only earnings plus money on my savings interest

eskbanker · 4 May 2022 at 10:55AM

garyelder said:

Am I right in saying you can earn upto 5k interest if you don’t reach your tax code, I have a rental property which we get 5 k each which is my only earnings plus money on my savings interest

Sort of, in that there is a £5K starting savings rate for low earners - check out https://www.moneysavingexpert.com/savings/tax-free-savings/ and if you have any questions about that, they're not really for this thread so start another....

garyelder said:

at some point the premium bond will have to raise there rate as people will be pulling out

That's not really how it works - the PB rate is calibrated to try to satisfy NS&I's net funding target, rather than trying to maximise takeup, so that doesn't mean they're always trying to attract money, quite the opposite in fact....