Premiem Bonds Advice UK

[Mikah75]

Ello everyone

I'm about to recieve bit of a large sum of inheritence money and just been looking into premium bonds. I don't want to spend any of it, only a portion on driving lessons but the rest I was just going to stuff in a ISA account, but was just been informed about premium bonds and just asking others what they think the better option would be?

 

[Huntingtons]

best account for that is mine

 

[Vladamir]

No mine!

 

[cHodAX]

You can do better than the interest rates of premium bonds, Alliance and Leicester has some nice interest on thier high end accounts and a mixture of that with ISA's or any of that gubbins is probably best. I am sure there are others on here who can offer much more detailed advice though.

 

[Nate]

Find a trusted relative that's in debt on a credit card, make a contract, get more interest than any ISA can offer. That's my plan with my money anyway

 

[soze]

I have a fair sum of cash in bonds what i like is ease of getting my money out without it being just there. If it was just in a saving account id spend it. And also its like playing the lottery for free the £1m a month draw is a nice bonus.

 

[Adrianicus]

What Chodax said really. ISAs are probably your best bet.

Have a read here :-

Premium Bonds: Are they worth it?...

Gives a breakdown on what return you'd get - think they articles says you get less than the interest rate so ISAs are probably best then maybe any left over cash stick into the premium bonds.

 

[Mey]

Bonds basicly work in the sense that you get no interest but you are entered into a draw monthly (iirc) and have the chance of winning anything from 50 quid to 1mill. They are a very old fashioned way of saving and unless you are very lucky aren't all that likely to produce much "interest". (the more bonds you have the more chance you have of winning iirc.).

Your best bet is probably to go with a term deposit account and a £3000 isa (which is your tax free allowance for the year). Typically most isa's will give you from around 5% to 6. odd.

 

[Imgormiel]

Ello everyone

I'm about to recieve bit of a large sum of inheritence money and just been looking into premium bonds. I don't want to spend any of it, only a portion on driving lessons but the rest I was just going to stuff in a ISA account, but was just been informed about premium bonds and just asking others what they think the better option would be?

Ok mate. You may remember that I also received a large sum of money due to the same reason. With the money I saved, I stuck in a fixed rate 1 year bond - which I will review each year to see my money grow.

I think the interest was something like 6.6% with the nationwide building society. It's a damned good rate.

I only put £200 in premium bonds because the gain is rather dodgy as an investment due to the possibility of waiting a good good while for any return but on the other hand you will lose no cash either.

I shopped around with various ideas of investing in stocks and shares via banks and self interest and found that a fixed rate bond to be the best thing on offer.

ISA's are now only good for a small amount of cash - iirc you can only put £3,000 per ISA in an account now due to the changes made by the government this year.

My advice is, after losing some close to you. Take a holiday, somewhere you wouldn't think of going normally but always wanted to go - after all, this is what they would want you to do and what some of the money was for Stick to the plan of the driving lessons. And consider what I have said. It's really nice now for me as I can do pretty much what I want even though the amount I received wasn't a massive fortune. But it's made my life a whole lot nicer and I feel very comfortable at the present.

Btw, we want your holiday piccies when you return and they have to be better than my ones

 

[Nate]

You do still loose by putting money in a premium bond, theres no interest so your money would be worth less as inflation rises. It's still a gamble by putting money in them.

 

[Imgormiel]

You do still loose by putting money in a premium bond, theres no interest so your money would be worth less as inflation rises. It's still a gamble by putting money in them.

You don't lose money at all, only in interest lost on the money you put in them. You can cash them any time you like and get your whole capital returned, just that you may not have any winnings.

 

[Mey]

Imgormiel what he means is if the price of a trolley full of shopping increases by say 10 quid (inflation) the money you had in the premium bonds will still say the same. So even though you could still buy said trolley of shopping last year, this year you will not be able too..

(very simplified but i think it's about right.)

 

[Imgormiel]

Imgormiel what he means is if the price of a trolley full of shopping increases by say 10 quid (inflation) the money you had in the premium bonds will still say the same. So even though you could still buy said trolley of shopping last year, this year you will not be able too..

(very simplified but i think it's about right.)

Ah, my info was based on the crap info on the leaflet I saw in January

 

[Mey]

You will still get the £200 you paid in to the bonds it will just be worth less. If that makes sense?

 

[Imgormiel]

You will still get the £200 you paid in to the bonds it will just be worth less. If that makes sense?

Sure it does, go figure

 

[Ezteq]

B2 says to buy gold or oil based stocks or a high interest savings account (his dad's got gold shares apparantly theyre doing very well). Also National savings have tax free savings accounts which are good and apparantly barclays have the best rates for ISAs atm.


depending on how much your getting though maybe wait and see how the property markets doing i.e. its going down now so watch wit and when its nice and low buy a flat/house or something.

 

[Mey]

Lloyds TSB will give you 6.5% if you transfer an existing ISA to them.

 

[Bugz]

Shares in oil/petrol companies = kaching!

 

[Mey]

Shares in oil/petrol companies = kaching!

You have to buy them first!

And to Kaching you'll need alot!