Out of interest I shall post on here my monthly premium bonds return for this year. I have 22k of premium bonds and so far this year my returns are as follows.
January. Nil February £50 March £150 April £200
At the end of the year I shall add up all my winnings and divide by 22k just to see what money I make as a %.
Personally I reckon my returns will be on a par with most other saving schemes out there. Plus of course I might even win the big one 😁
With odds of 24000-1 of winning a single prize, I’d say your return this year is not too shabby.
Out of interest I shall post on here my monthly premium bonds return for this year. I have 22k of premium bonds and so far this year my returns are as follows.
January. Nil February £50 March £150 April £200
At the end of the year I shall add up all my winnings and divide by 22k just to see what money I make as a %.
Personally I reckon my returns will be on a par with most other saving schemes out there. Plus of course I might even win the big one 😁
You're doing well so far on £22k.
It will be interesting to see how the year plays out. My wife if she continues her run is on for 6.6% return this calendar year.
But as someone who maxes out their ISA and is a higher rate tax payer they still work for me, just. But a week ago I advised my eldest daughter to cash hers in, she doesn't have the maximum and is a 20% tax payer who doesn't max out her ISA it no longer makes any financial sense. She's cashed them in bar £100 just to keep her NS&I account open.
Have zero chance of getting my wife to cash hers in, she's addicted to them! My youngest has almost the maximum and seems to do pretty well on them all things considered.
When you state 'cash the Isa' in, for what purpose exactly? @Rob7Lee
But as someone who maxes out their ISA and is a higher rate tax payer they still work for me, just. But a week ago I advised my eldest daughter to cash hers in, she doesn't have the maximum and is a 20% tax payer who doesn't max out her ISA it no longer makes any financial sense. She's cashed them in bar £100 just to keep her NS&I account open.
Have zero chance of getting my wife to cash hers in, she's addicted to them! My youngest has almost the maximum and seems to do pretty well on them all things considered.
When you state 'cash the Isa' in, for what purpose exactly? @Rob7Lee
But as someone who maxes out their ISA and is a higher rate tax payer they still work for me, just. But a week ago I advised my eldest daughter to cash hers in, she doesn't have the maximum and is a 20% tax payer who doesn't max out her ISA it no longer makes any financial sense. She's cashed them in bar £100 just to keep her NS&I account open.
Have zero chance of getting my wife to cash hers in, she's addicted to them! My youngest has almost the maximum and seems to do pretty well on them all things considered.
When you state 'cash the Isa' in, for what purpose exactly? @Rob7Lee
But as someone who maxes out their ISA and is a higher rate tax payer they still work for me, just. But a week ago I advised my eldest daughter to cash hers in, she doesn't have the maximum and is a 20% tax payer who doesn't max out her ISA it no longer makes any financial sense. She's cashed them in bar £100 just to keep her NS&I account open.
I'm in a similar position. I'm fortunate (unfortunate?) my pensions take me into the higher tax bracket so I max out on ISAs and PBs to minimise the 40% tax burden. My retrurn last calendar year was around 1.3% on the PBs - roughly inline with the interest rate on most instant access accounts - at the time. Hoping for more this year - but the dream of an outside chance of a big win is always there with PB's...
Chances of winning £1million: 1:59 Billion £100k 1; 1,877,995,285 £50k. 1: 639,317,516. With water meters about to be installed, I prefer 3.55% instant access, or 4.55% 1 year fixed.
Chances of winning £1million: 1:59 Billion £100k 1; 1,877,995,285 £50k. 1: 639,317,516. With water meters about to be installed, I prefer 3.55% instant access, or 4.55% 1 year fixed.
Your 3.55% is 2.13% for a higher tax rate (40%) investor, particularly as there is no savings allowance now. This is pretty much what a median investor is likely to earn from premium bonds. would be 2.84% for lower raate tax payer although there is still a £500 savings allowance before any tax applied.
I am not in that bracket. Last year, I received £750 from 50k. Now interest rates have shifted, allowing for 20% above the £1k limit, there is a dilemma. That amount will return £1775 at 3.55 minus tax = 1620, or £2275 @ 4.55% minus tax = £2020 (if my sums are right). 750 + hope or 1620/2020. Have the tax allowances changed? My estimate is based on the first £1000 being tax free.
I see PB's as a tax-free savings account, especially if you are a 40% taxpayer. Backed by the Government so no worries about losing it or trying to find another Bank to hoard your cash up to the £85k compo limit. Instant access (within reason) & chance of getting a bigger return than the usual interest rate. Mines there as I sold a property last October & knew I would be buying one later this year. Used up my ISA Allowance so best place for £50k that I needed again within 12 months.
I see PB's as a tax-free savings account, especially if you are a 40% taxpayer. Backed by the Government so no worries about losing it or trying to find another Bank to hoard your cash up to the £85kcompolimit. Instant access (within reason) & chance of getting a bigger return than the usual interest rate. Mines there as I sold a property last October & knew I would be buying one later this year. Used up my ISA Allowance so best place for £50k that I needed again within 12 months.
It’s been suggested for nearly a year now but Andrew Bailey was reported as saying last week, in the wake of SVB and Cr Suisse in recent weeks, that the limit needs to change especially given that it is c.£200k in the US now. Hopefully that will make it easier for people to manage their savings in future.
I see PB's as a tax-free savings account, especially if you are a 40% taxpayer. Backed by the Government so no worries about losing it or trying to find another Bank to hoard your cash up to the £85kcompolimit. Instant access (within reason) & chance of getting a bigger return than the usual interest rate. Mines there as I sold a property last October & knew I would be buying one later this year. Used up my ISA Allowance so best place for £50k that I needed again within 12 months.
It’s been suggested for nearly a year now but Andrew Bailey was reported as saying last week, in the wake of SVB and Cr Suisse in recent weeks, that the limit needs to change especially given that it is c.£200k in the US now. Hopefully that will make it easier for people to manage their savings in future.
I've always said that the limit is meaningless as UK Governments do their utmost to stop Banks going under - Northern rock for example.
Woolworths, Debenhams etc. Can all go to the wall but a high street UK bank will always be safe.
I see PB's as a tax-free savings account, especially if you are a 40% taxpayer. Backed by the Government so no worries about losing it or trying to find another Bank to hoard your cash up to the £85kcompolimit. Instant access (within reason) & chance of getting a bigger return than the usual interest rate. Mines there as I sold a property last October & knew I would be buying one later this year. Used up my ISA Allowance so best place for £50k that I needed again within 12 months.
It’s been suggested for nearly a year now but Andrew Bailey was reported as saying last week, in the wake of SVB and Cr Suisse in recent weeks, that the limit needs to change especially given that it is c.£200k in the US now. Hopefully that will make it easier for people to manage their savings in future.
I've always said that the limit is meaningless as UK Governments do their utmost to stop Banks going under - Northern rock for example.
Woolworths, Debenhams etc. Can all go to the wall but a high street UK bank will always be safe.
I agree @golfaddick but we’ve seen the hoops people go through to open up accounts with different banks should they be fortunate enough to have more than the current limit. In reality, these additional accounts are probably more of a pain for the “secondary” banks, as there is little to no extra business they can do with these clients.
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It will be interesting to see how the year plays out. My wife if she continues her run is on for 6.6% return this calendar year.
My estimate is based on the first £1000 being tax free.
Woolworths, Debenhams etc. Can all go to the wall but a high street UK bank will always be safe.
A hundred quid this month though, chuffed!
Nil this month
£375 for the father in law.