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Savings and Investments thread
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Disappointing £50 and a £25 for me. £25 for the wife ( who has had a very poor return recently and like Fanny is going to move to interest paying account). Junior got £50.0
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£100 for me which will do nicely as I am already having a rare good year where the return is a little above the expected % rate.It is however now time for the regulatory bodies to investigate @Rob7Lee ‘s father-in-law 😂5
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£125 for me (a £25 and a £100).That’s £975 over the last 7 months on a full holding. About a 3.35% return (average of £140 per month).0
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His £50k seems to regularly out strip our circa £130k, go figure. Must admit it is getting to the point now where I may cash in, my eldest has cashed almost all of hers in as return much better in Savings. But the tax free element remains nice especially as my wife's out of headroom really to avoid any more tax.PragueAddick said:£100 for me which will do nicely as I am already having a rare good year where the return is a little above the expected % rate.It is however now time for the regulatory bodies to investigate @Rob7Lee ‘s father-in-law 😂0 -
Just had a count up and my prize total for the year from Sept 22 is exactly £2k (no single prize over £100) on a holding at the start of that time of around £47.8k. That's a decent return.2
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Keep seeing posters refer to the tax free benefit of PB but doesn't this only apply if you have the winnings converted to PB (assuming you don't already hold the maximum) or transferred to a non interest account. If you have already used up your personal saving allowance & you earn interest on your account, those winnings will be taxed, wont they. Am I missing something ?Rob7Lee said:His £50k seems to regularly out strip our circa £130k, go figure. Must admit it is getting to the point now where I may cash in, my eldest has cashed almost all of hers in as return much better in Savings. But the tax free element remains nice especially as my wife's out of headroom really to avoid any more tax.0 -
The prizes are tax free (like interest returns on an isa). If you then place that prize money in a normal interest-bearing account you may be liable to pay tax on any subsequent interest earned.housemate said:
Keep seeing posters refer to the tax free benefit of PB but doesn't this only apply if you have the winnings converted to PB (assuming you don't already hold the maximum) or transferred to a non interest account. If you have already used up your personal saving allowance & you earn interest on your account, those winnings will be taxed, wont they. Am I missing something ?Rob7Lee said:His £50k seems to regularly out strip our circa £130k, go figure. Must admit it is getting to the point now where I may cash in, my eldest has cashed almost all of hers in as return much better in Savings. But the tax free element remains nice especially as my wife's out of headroom really to avoid any more tax.0 -
No, the winnings themselves are all tax free. If you deposit them in an interest-bearing account, that is subject to tax, then that interest is taxed.housemate said:
Keep seeing posters refer to the tax free benefit of PB but doesn't this only apply if you have the winnings converted to PB (assuming you don't already hold the maximum) or transferred to a non interest account. If you have already used up your personal saving allowance & you earn interest on your account, those winnings will be taxed, wont they. Am I missing something ?Rob7Lee said:His £50k seems to regularly out strip our circa £130k, go figure. Must admit it is getting to the point now where I may cash in, my eldest has cashed almost all of hers in as return much better in Savings. But the tax free element remains nice especially as my wife's out of headroom really to avoid any more tax.0 -
My winnings are paid directly to my bank account.housemate said:
Keep seeing posters refer to the tax free benefit of PB but doesn't this only apply if you have the winnings converted to PB (assuming you don't already hold the maximum) or transferred to a non interest account. If you have already used up your personal saving allowance & you earn interest on your account, those winnings will be taxed, wont they. Am I missing something ?Rob7Lee said:His £50k seems to regularly out strip our circa £130k, go figure. Must admit it is getting to the point now where I may cash in, my eldest has cashed almost all of hers in as return much better in Savings. But the tax free element remains nice especially as my wife's out of headroom really to avoid any more tax.
No tax as far as I'm aware.0 -
Thanks for the responses. So depends on your circumstances & what you do with the winnings that determines whether they are actually tax free savings.0
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Not sure if you are getting it.housemate said:Thanks for the responses. So depends on your circumstances & what you do with the winnings that determines whether they are actually tax free savings.
The winnings are tax free. What you do with that money is then subject to tax depending on where you put it.
I won £250 today. That was tax free. I could then put that money into an ISA, which would then attract interest which would then again be tax free. I could put the money into a pension that would attract tax relief. I could simply put the money into a savings account which could attract interest which could be subject to tax depending on my circumstances.
With your thinking you wouldn't want to earn income as that would be taxed twice. Once by the taxman & again in your bank / savings account.
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Thanks, was just looking at it from my own circumstances. Already exceed my personal saving allowance and can't move anymore into an ISA until the next financial year. Any winnings are transferred to my bank account & I earn interest on that account so was thinking any winnings would be subject to 20% or 40% tax. However, your post made me rethink & have a bit of a eureka moment ! Now realise I wont be taxed on those winnings but only on the interest earned on the account overall. So most of those winnings will be tax free. Hope this makes sense & I'm not confusing things even more.golfaddick said:Not sure if you are getting it.
The winnings are tax free. What you do with that money is then subject to tax depending on where you put it.
I won £250 today. That was tax free. I could then put that money into an ISA, which would then attract interest which would then again be tax free. I could put the money into a pension that would attract tax relief. I could simply put the money into a savings account which could attract interest which could be subject to tax depending on my circumstances.
With your thinking you wouldn't want to earn income as that would be taxed twice. Once by the taxman & again in your bank / savings account.
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housemate said:
Thanks, was just looking at it from my own circumstances. Already exceed my personal saving allowance and can't move anymore into an ISA until the next financial year. Any winnings are transferred to my bank account & I earn interest on that account so was thinking any winnings would be subject to 20% or 40% tax. However, your post made me rethink & have a bit of a eureka moment ! Now realise I wont be taxed on those winnings but only on the interest earned on the account overall. So most of those winnings will be tax free. Hope this makes sense & I'm not confusing things even more.golfaddick said:Not sure if you are getting it.
The winnings are tax free. What you do with that money is then subject to tax depending on where you put it.
I won £250 today. That was tax free. I could then put that money into an ISA, which would then attract interest which would then again be tax free. I could put the money into a pension that would attract tax relief. I could simply put the money into a savings account which could attract interest which could be subject to tax depending on my circumstances.
With your thinking you wouldn't want to earn income as that would be taxed twice. Once by the taxman & again in your bank / savings account.Almost there. All of your PB winnings are tax free. In your scenario above, it is only the interest that you then earn on it that is subject to tax.1 -
Out of interest have you ever calculated his %return on a year of holding?Rob7Lee said:
His £50k seems to regularly out strip our circa £130k, go figure. Must admit it is getting to the point now where I may cash in, my eldest has cashed almost all of hers in as return much better in Savings. But the tax free element remains nice especially as my wife's out of headroom really to avoid any more tax.PragueAddick said:£100 for me which will do nicely as I am already having a rare good year where the return is a little above the expected % rate.It is however now time for the regulatory bodies to investigate @Rob7Lee ‘s father-in-law 😂0 -
Just had a quick total up, he had a lot of £50's so despite a regular winner not many larger one's. Last 12 months 2.75%. I suspect the year before was more as had some bigger wins.PragueAddick said:
Out of interest have you ever calculated his %return on a year of holding?Rob7Lee said:
His £50k seems to regularly out strip our circa £130k, go figure. Must admit it is getting to the point now where I may cash in, my eldest has cashed almost all of hers in as return much better in Savings. But the tax free element remains nice especially as my wife's out of headroom really to avoid any more tax.PragueAddick said:£100 for me which will do nicely as I am already having a rare good year where the return is a little above the expected % rate.It is however now time for the regulatory bodies to investigate @Rob7Lee ‘s father-in-law 😂
My wife last 6 draws alone were £1,075 so she may well beat his % return.0 -
Just received an email from Chase, they've increased the variable saver rate once again to 4.1%. Personally found them to be the best banking service I have dealt with (although I'm quite young and naive).1
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Well I'm old and financially pretty aware...and I'd agree they are both fast to respond to rate changes and using their app they respond to queries, usually, within minutes. Getting their rewards for daily spending has actually changed the way I spend and the roundups - to encourage saving - works really well.GetYerCoreyOut said:Just received an email from Chase, they've increased the variable saver rate once again to 4.1%. Personally found them to be the best banking service I have dealt with (although I'm quite young and naive).2 -
Yes - I have money with Chase and also Marcus who have raised theirs today to 4.3%GetYerCoreyOut said:Just received an email from Chase, they've increased the variable saver rate once again to 4.1%. Personally found them to be the best banking service I have dealt with (although I'm quite young and naive).
Investec have some of my funds also and raised their rate yesterday - instant access now 4.47%1 -
Kent Reliance have just send me an email my easy access account going up by 0.25% to 4.5% on 18th August. I’m impressed.1
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£1175 winnings on PB in the last year from £50K, according to Martin Lewis website.
You have average luck! Only 85.6% of people who have put £50,000 in premium bonds over 1 year win more than £1175, meaning you're about spot on.
The winnings have either gone into my share ISA or my pension.1 - Sponsored links:
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I have money in those three too, and the rest, so I try to review my sprawling portfolio of cash generating stuff each month. I noticed that Investec are now offering a 1 year fix at 6%. Actually I have a 1 year with them and with Charter Savings, which mature during October, at 4% plus which now seemsa bit tame! I think there's a good chance that they will still be offering 6% in October too, but sometimes these things "sell out".bobmunro said:
Yes - I have money with Chase and also Marcus who have raised theirs today to 4.3%GetYerCoreyOut said:Just received an email from Chase, they've increased the variable saver rate once again to 4.1%. Personally found them to be the best banking service I have dealt with (although I'm quite young and naive).
Investec have some of my funds also and raised their rate yesterday - instant access now 4.47%
So this forces me to look at my portfolio of equity growth funds. How confident am I that those funds will be up at least 6.45% this time next year (the 0.45% is the H-L platform nibble)? . If I am not confident- and I am not - then I think there's a case -given my age -for a bit more de-risking of my portfolio, i.e if in the next 4 weeks the markets bounce up a bit, sell off some fund holdings and put them into cash at these high rates.
"Someone challenge me on that? " ©Charlie Methven2 -
I definitely won't challenge you on that. I think we may be of a similar age, Richard, and I am very top heavy in cash (have been for a couple of years) - and at 6% returns guaranteed it's a sensible option to take when one reaches a certain age! My days of financial risk taking are gone.PragueAddick said:
I have money in those three too, and the rest, so I try to review my sprawling portfolio of cash generating stuff each month. I noticed that Investec are now offering a 1 year fix at 6%. Actually I have a 1 year with them and with Charter Savings, which mature during October, at 4% plus which now seemsa bit tame! I think there's a good chance that they will still be offering 6% in October too, but sometimes these things "sell out".bobmunro said:
Yes - I have money with Chase and also Marcus who have raised theirs today to 4.3%GetYerCoreyOut said:Just received an email from Chase, they've increased the variable saver rate once again to 4.1%. Personally found them to be the best banking service I have dealt with (although I'm quite young and naive).
Investec have some of my funds also and raised their rate yesterday - instant access now 4.47%
So this forces me to look at my portfolio of equity growth funds. How confident am I that those funds will be up at least 6.45% this time next year (the 0.45% is the H-L platform nibble)? . If I am not confident- and I am not - then I think there's a case -given my age -for a bit more de-risking of my portfolio, i.e if in the next 4 weeks the markets bounce up a bit, sell off some fund holdings and put them into cash at these high rates.
"Someone challenge me on that? " ©Charlie Methven2 -
I'll challenge you on the markets bumping up in the next four weeks, but can't find fault with the rest of it.
And HLs .45% is more of a chomp than a nibble.2 -
the missus still has about 30k she can take from her SIPP as tax free cash. Don't actually need the money until early 2026 upon which we will need to take as part of our yearly income but the question is do we leave it where it is where her SIPP is up about 2% on the year (low risk as risk adverse) or take now and invest elsewhere at 6% plus?0
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There's no way of knowing for certain, but if she's happy with 6% then you've got your answer.LargeAddick said:the missus still has about 30k she can take from her SIPP as tax free cash. Don't actually need the money until early 2026 upon which we will need to take as part of our yearly income but the question is do we leave it where it is where her SIPP is up about 2% on the year (low risk as risk adverse) or take now and invest elsewhere at 6% plus?1 -
I would agree with CE - if you definitely don't need it until early 2026 then maybe take a two year fix at or slightly above 6%.LargeAddick said:the missus still has about 30k she can take from her SIPP as tax free cash. Don't actually need the money until early 2026 upon which we will need to take as part of our yearly income but the question is do we leave it where it is where her SIPP is up about 2% on the year (low risk as risk adverse) or take now and invest elsewhere at 6% plus?0 -
Bear in mind the tax implications though - £30k at 6% will generate £1800 so assuming she's a basic rate tax payer she'd be subject to tax on £800 of that (£1300 if she pays higher rate tax). She could put it in a cash ISA but I haven't seen one that gets close to 6%. All depends what else she has going on, of course.LargeAddick said:the missus still has about 30k she can take from her SIPP as tax free cash. Don't actually need the money until early 2026 upon which we will need to take as part of our yearly income but the question is do we leave it where it is where her SIPP is up about 2% on the year (low risk as risk adverse) or take now and invest elsewhere at 6% plus?0 -
thanks for the replies guys0
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No PB prize for me this month but I do have a handful of Amazon shares, so happy enough0
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If you were my clients asking this I would probably have a hard time getting this through compliance.LargeAddick said:the missus still has about 30k she can take from her SIPP as tax free cash. Don't actually need the money until early 2026 upon which we will need to take as part of our yearly income but the question is do we leave it where it is where her SIPP is up about 2% on the year (low risk as risk adverse) or take now and invest elsewhere at 6% plus?
The usual wisdom is to only take money out of your pension if you really need it. Taking it out if a tax free environment (for that is what your 25% allowance is in reality) to put it into a taxable "product" doesn't seem to make much sense. Yes we can argue all day long that interest rates are currently high & 6% would have beaten most equity returns last year, but we dont know what the future holds and her SIPP could make 10% this year. Where does an adviser stand in that scenario ?
Also, as has been mentored on here a few times recently, the more risk adverse you are currently the worse returns you will be getting. Bonds are starting to give some gains now that inflation is starting to fall but if interest rates stay between 5% - 6% until 2025 as predicted then Bonds are still not going to be that attractive and so your risk adverse portfolios could carry on losing money.1
