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NS&I still worth it?
Comments
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Not the best option if the £50k is all or most of the money you have to save or invest; perhaps more attractive if it's part of a £1M personal portfolio that you have to manage! Assuming it's somewhere in the middle, you (literally) pays your money and takes your chances.
I'm not a higher rate tax payer but I deem having PBs worth it.0 -
I did have some Premium Bonds years ago and withdrew as it wasn't much, but now I could afford to invest the full £50k limit (if it was worth it?)
Are they still an attractive proposition? and if so, do you have easy quick access if you need to withdraw?
For the 18-19 financial year l had the full £50K premium bonds invested return was £950 1.9% tax free. Approximately £79.16 a month average return. I'm a 40% tax payer so felt it was worth it and have quick access to the cash if needed. I post my returns/performance monthly on the premium bonds thread. I get far better returns in the stock market but this is one of a number of rainy day pots.0 -
I won a nice 3 digit sum this month.
And I don't have that much invested.
So I may as well withdraw the money now!0 -
So in short, worth it or not? LOL
If you can get 1.5% instant access elsewhere why bother unless you're a gambler that doesn't want to lose any of their stake. If you're prepared to risk some capital for a better return then I'd use investments instead.Remember the saying: if it looks too good to be true it almost certainly is.0 -
It would depend on your own circumstances on whether NS&I are worth it or not.Save £12k in 2019 #154 - £14,826.60/£12kSave £12k in 2020 #128 - £4,155.62/£10k0
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If you can get 1.5% instant access elsewhere why bother unless you're a gambler that doesn't want to lose any of their stake. If you're prepared to risk some capital for a better return then I'd use investments instead.
In my own case, if I get instant access elsewhere at 1.5% as you suggest and then pay 40 or 45% or 60% marginal rate of tax on it, the 1.5% would translate to only 0.9% or 0.825% or 0.6% after I had paid the income tax due.
Whereas with PBs I can reasonably hope to win a couple of prizes a month on a little under £50k, and - with each of those prizes being worth £25 or more - the anticipated tax free rate of return of c. 1.2% is literally a third more net income than would be obtained from a (e.g.) 1.5% Marcus account after 40% tax and is potentially double what would be obtained from a Marcus account net of certain high marginal rates of tax.
As it happens I have a large tax bill to pay next year and so medium risk investments would be inappropriate for such a timescale; and yes I already have a couple of decent current accounts and regular savers for normal day to day savings, before you start down that road. 0
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