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  • FIRST POST
    • J2019
    • By J2019 14th Jun 19, 2:15 PM
    • 2Posts
    • 0Thanks
    J2019
    Bonds or Savings?
    • #1
    • 14th Jun 19, 2:15 PM
    Bonds or Savings? 14th Jun 19 at 2:15 PM
    Hello

    I'm new here and was hoping to get some advice on the following please? Perhaps from one of Martin's team (if they do that?)

    I heard Martin Lewis speaking about how he doesn't really like Bonds as the chances of winning something are so low you might as well put the money into a saving account... something along those lines from what I remember.

    Anyway, I have about 15k split across both UK and Irish bonds for the past 10 years or so but I've never really won much... probably around 150-200 over that period in small winnings.

    So, I was wondering if I might be better to save it elsewhere and was hoping for some advice on here?

    Ideally I want to avoid anything that risks my money but would like something where I can see some sort of return either on a monthly, quarterly or yearly basis. Most of the higher interest savings accounts seem to be only available if you have a current account also. This won't work for me though as I no longer have a steady income to support the minimum pay in thresholds for such offers/accounts.

    Thanks in advance
Page 1
    • eskbanker
    • By eskbanker 14th Jun 19, 3:05 PM
    • 11,434 Posts
    • 14,195 Thanks
    eskbanker
    • #2
    • 14th Jun 19, 3:05 PM
    • #2
    • 14th Jun 19, 3:05 PM
    Just to be clear, 'bonds' is a highly generic term covering a wide range of entirely different products - it's used for corporate loan notes, government gilts, fixed-term savings accounts and a variety of dodgy unregulated investments too (latching onto the apparent implied safety), but in your case it seems that you're referring specifically to Premium Bonds, the NS&I scheme.

    The typical return on a reasonable-sized holding would be in 1.25% territory, so it's not difficult to beat that, albeit PB returns are tax-free, which makes a significant difference for higher-rate taxpayers who've exhausted their personal savings allowance.

    In terms of better alternatives, a few spring to mind, in descending order:
    1. Multiple current accounts, satisfying minimum monthly funding by shuffling money between them.
    2. Regular saver accounts.
    3. Fixed-term/rate savings, in or outside of ISA wrapping, Sharia ones in particular.
    4. Notice savings accounts.
    5. Easy-access savings accounts.
    https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/ summarises your options, either within the article itself or via links from it....
    Last edited by eskbanker; 14-06-2019 at 3:53 PM.
    • AnotherJoe
    • By AnotherJoe 14th Jun 19, 4:50 PM
    • 16,021 Posts
    • 19,221 Thanks
    AnotherJoe
    • #3
    • 14th Jun 19, 4:50 PM
    • #3
    • 14th Jun 19, 4:50 PM
    Hello

    I'm new here and was hoping to get some advice on the following please? Perhaps from one of Martin's team (if they do that?)
    They don't
    Ideally I want to avoid anything that risks my money
    You are already more than risking it, it's losing a couple of percent every year due to inflation. Over time that will be very significant. In ten years your 15k will be worth roughly 12k in today's money. but would like something where I can see some sort of return either on a monthly, quarterly or yearly basis.
    That won't be premium bonds or a savings account then. Most of the higher interest savings accounts seem to be only available if you have a current account also. This won't work for me though as I no longer have a steady income to support the minimum pay in thresholds for such offers/accounts.
    Originally posted by J2019
    Easily fixable by cycling money between accounts. Pay 1k (say) from A to B a day later pay the same 1k from B back to A, a month later, rinse and repeat.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • polymaff
    • By polymaff 14th Jun 19, 5:58 PM
    • 3,002 Posts
    • 1,398 Thanks
    polymaff
    • #4
    • 14th Jun 19, 5:58 PM
    • #4
    • 14th Jun 19, 5:58 PM
    Good advice from Esk and Joe, above.


    Just a small point to make about your NS&I Premium Bonds is that small holdings give a disproportionately poor return. Don't expect 5k in premium bonds to return a tenth of what a 50k holding would. With PBs it just doesn't work like that.
    Last edited by polymaff; 14-06-2019 at 6:19 PM.
    • J2019
    • By J2019 14th Jun 19, 7:24 PM
    • 2 Posts
    • 0 Thanks
    J2019
    • #5
    • 14th Jun 19, 7:24 PM
    • #5
    • 14th Jun 19, 7:24 PM
    Yes sorry I should have been more clear, when I say bonds I mean NS&I and Irish Prize Bonds (similar thing).

    I'd just rather have them bring in something solid, even if it's only a small amount rather than "hoping" to win at least 25 each month... but I'm just not sure as to what.

    The moving money from current account to current account sounds like a solution to the attached savings accounts but is that all okay to do that?

    Thanks for the replies so far.
    • AnotherJoe
    • By AnotherJoe 14th Jun 19, 7:41 PM
    • 16,021 Posts
    • 19,221 Thanks
    AnotherJoe
    • #6
    • 14th Jun 19, 7:41 PM
    • #6
    • 14th Jun 19, 7:41 PM
    Yes it's fine to do that, it's even advised somewhere in one of the articles in here. I've got five or six accounts cycling the same 1k round and round, some people here have dozens.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • eskbanker
    • By eskbanker 14th Jun 19, 11:42 PM
    • 11,434 Posts
    • 14,195 Thanks
    eskbanker
    • #7
    • 14th Jun 19, 11:42 PM
    • #7
    • 14th Jun 19, 11:42 PM
    Yes it's fine to do that, it's even advised somewhere in one of the articles in here. I've got five or six accounts cycling the same 1k round and round, some people here have dozens.
    Originally posted by AnotherJoe
    Fools!

    https://forums.moneysavingexpert.com/showthread.php?t=5953486
    • AnotherJoe
    • By AnotherJoe 15th Jun 19, 9:42 AM
    • 16,021 Posts
    • 19,221 Thanks
    AnotherJoe
    • #8
    • 15th Jun 19, 9:42 AM
    • #8
    • 15th Jun 19, 9:42 AM
    That would be Dozens not dozens

    As long as its not dozens of Dozens.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
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