On a slightly different topic my main pension managed a gain of £23.6k in the month of November, the one day of December it's already up a further £4k, long may that continue!
I think my wife and I are about to buy a big batch of premium bonds. Primarily so I have something to say in here once a month to you guys, very jealous missing out
£300, split over five different prize amounts. Earned just under 3% for the year, which isn't so good, with three blank months. I'm not moving them though.
A meagre £100 for me and nothing for Margaret. Feedback on here so far suggests low payouts generally. Typically a Charlton Christmas!
Add me to that. Nothing this month, first time in more than year. I cannot think of a good reason why overall payouts should be lower. Hmm
Anyway not connected with that, we can now work out our total profit/rate of interest on our winnings for the year. I thought it might be interesting to do a little survey as the consolidated results might be insightful.
My method of calculating is - Log on to see your full year winnings - Add up the total - subtract this number from your current total holdings to get your start of year total - calculate annual winnings as % of start of year total
It might be even more interesting if people would not mind stating roughly what total holding they have; maybe just split into <25k or >25k
My effective ROI this year is 4.3%. I am in the >25k bracket.
Is that good? Yes I think it is, at least OK. You could get 5%+ in cash now, and briefly 6% plus from NS&I itself, but not in the first few months of the year.
Anyone else up for this? If anyone wants to improve on my suggested process, feel free.
A meagre £100 for me and nothing for Margaret. Feedback on here so far suggests low payouts generally. Typically a Charlton Christmas!
Add me to that. Nothing this month, first time in more than year. I cannot think of a good reason why overall payouts should be lower. Hmm
Anyway not connected with that, we can now work out our total profit/rate of interest on our winnings for the year. I thought it might be interesting to do a little survey as the consolidated results might be insightful.
My method of calculating is - Log on to see your full year winnings - Add up the total - subtract this number from your current total holdings to get your start of year total - calculate annual winnings as % of start of year total
It might be even more interesting if people would not mind stating roughly what total holding they have; maybe just split into <25k or >25k
My effective ROI this year is 4.3%. I am in the >25k bracket.
Is that good? Yes I think it is, at least OK. You could get 5%+ in cash now, and briefly 6% plus from NS&I itself, but not in the first few months of the year.
Anyone else up for this? If anyone wants to improve on my suggested process, feel free.
Would also be interested in this.
Isn't the key thing on the "5% cash" comment though disregarding income tax a bit? Eg if you are a higher rate tax payer you need to divide the rate by 1.66, so 5% very quickly becomes 3.125% (I know you know all this just want to spell it all out). That actually makes savings accounts (outside of ISAs) pretty uncompetitive vs premium bonds. Your 4.3% is a brilliant return in my opinion, provided you have used your isa allowance first.
For me I will be filling up my and my wife's ISAs, then moving into Premium Bonds. Then each year where I can't fill an isa (most of them!) I will probably sell PBs to add to ISAs.
The personal savings allowances are currently £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Am I right in saying these remain the same for 2023/24?
@Huskaris you’re right to remind everyone about the UK tax element when comparing PBs and savings accounts. I tend to overlook it, being neither a UK taxpayer as of this year, or an ISA holder which is for UK tax residents only regardless of whether you pay UK tax.
@Huskaris you’re right to remind everyone about the UK tax element when comparing PBs and savings accounts. I tend to overlook it, being neither a UK taxpayer as of this year, or an ISA holder which is for UK tax residents only regardless of whether you pay UK tax.
Typical tax dodging rich bastards, no wonder the UK is such a mess (as you often remind us)
@Huskaris you’re right to remind everyone about the UK tax element when comparing PBs and savings accounts. I tend to overlook it, being neither a UK taxpayer as of this year, or an ISA holder which is for UK tax residents only regardless of whether you pay UK tax.
Typical tax dodging rich bastards, no wonder the UK is such a mess (as you often remind us)
Don’t you worry mate, Prague is a haven for a fair few morally dubious practices, but tax avoidance isn’t one of them. They don’t tax State pensions, mind. And unlike banks, NS&I don’t grass on Brits abroad. Rollin’ in it, me 😉
@Huskaris you’re right to remind everyone about the UK tax element when comparing PBs and savings accounts. I tend to overlook it, being neither a UK taxpayer as of this year, or an ISA holder which is for UK tax residents only regardless of whether you pay UK tax.
Typical tax dodging rich bastards, no wonder the UK is such a mess (as you often remind us)
Don’t you worry mate, Prague is a haven for a fair few morally dubious practices, but tax avoidance isn’t one of them. They don’t tax State pensions, mind. And unlike banks, NS&I don’t grass on Brits abroad. Rollin’ in it, me 😉
I hope to be back there eating at Kantyna and Sia in the new year whilst being morally dubious!!!
Comments
Anyway not connected with that, we can now work out our total profit/rate of interest on our winnings for the year. I thought it might be interesting to do a little survey as the consolidated results might be insightful.
My method of calculating is
- Log on to see your full year winnings
- Add up the total
- subtract this number from your current total holdings to get your start of year total
- calculate annual winnings as % of start of year total
It might be even more interesting if people would not mind stating roughly what total holding they have; maybe just split into <25k or >25k
My effective ROI this year is 4.3%. I am in the >25k bracket.
Is that good? Yes I think it is, at least OK. You could get 5%+ in cash now, and briefly 6% plus from NS&I itself, but not in the first few months of the year.
Anyone else up for this? If anyone wants to improve on my suggested process, feel free.
4.82%
Happy enough with that.
Isn't the key thing on the "5% cash" comment though disregarding income tax a bit? Eg if you are a higher rate tax payer you need to divide the rate by 1.66, so 5% very quickly becomes 3.125% (I know you know all this just want to spell it all out). That actually makes savings accounts (outside of ISAs) pretty uncompetitive vs premium bonds. Your 4.3% is a brilliant return in my opinion, provided you have used your isa allowance first.
For me I will be filling up my and my wife's ISAs, then moving into Premium Bonds. Then each year where I can't fill an isa (most of them!) I will probably sell PBs to add to ISAs.
Interested as to what people think about this?