Invest £10K in Premium Bonds or Halifax 1 yr Term Deposit at 6.5% gross

[Deleted User]

debbie42 wrote: »

You're just not looking hard enough
http://forums.moneysavingexpert.com/showthread.html?t=942779

message#6

p.s. I only found it as I was looking for something else: I'm not that obsessive, honest!

Yay, I'm not going mad! It does exist

Ironically I'd already linked to it when discussing regular savers and one to watch for not realising the comment was in that thread... Oh well - 10mins I'll never get back in my life!

dreamybee

Hi guys,

Thanks for your replies - having read the information on this website and your replies, I have come to the conclusion that I will invest the £10k into the halifax fixed term again as I am guaranteed to get a reasonable return.

grebbo

debbie42 wrote: »

Premium bonds can in no way be considered an "investment". I see them as a gamble, using the stake of the effective lack of interest you would be getting elsewhere.

This did make me chuckle....surely "investing" is gambling/speculating as the returns aren't guaranteed

Premium Bonds are more of an investment than a form of savings IMHO

isofa

grebbo wrote: »

This did make me chuckle....surely "investing" is gambling/speculating as the returns aren't guaranteed
Premium Bonds are more of an investment than a form of savings IMHO

Perhaps, but would you say playing the lottery is a form of investing then?

It depends what definition of investing you take. The true definition of "investing" (according to the OED) is to put money for a profit into something (such as stocks or shares). Obviously there is a risk factor here, but is it essential?

Saving money in accounts certainly isn't investing in the true sense, but most people use the phrase "to invest money in..." when they talk of bank accounts. It crops up daily on this forum, "I have £xx to invest, which account should I choose". As bank accounts accounts return a profit via interest, albeit guaranteed, technically, on the grounds of English usage, it is perhaps correct to use this term, but not so to a wise money person! :beer:

oldfella

put a small amount in PB - say £100 - the difference in odds to win a large amount is not significant between £100 and £10,000.

royeee

Premium bonds and Savings are like apples and oranges - 2 entirely different kinds of fruit. Like these, its a decision on whether to go for one kind or another.

baby_boomer

If you are a higher rate taxpayer then it could push you towards PBs - although the Halifax is still going to offer you a better return "on average". Don't forget your £650 will be taxed whereas your possible PB earnings won't be.

I'd personally go with Halifax every time.

But one advantage of going with PBs is that you will know if you made a mistake or not, whereas if you go for Halifax you could be left wondering, "What if......"