Premium bonds v ISA?

[Brandane]

I've got a few PB's too. The return on them is slightly disappointing, but still better than having savings sitting in an ISA at extremely low rates of interest IMHO..
I haven't bothered to compare the odds of winning a £million versus the lottery (which I stopped wasting money on years ago), but at least you get to keep the stake money with PB's..

 

[PK99]

but at least you get to keep the stake money with PB's..

don't forget you are currently losing 3% of the value of your holding every year to inflation.

also, if regarding PBs as an investment you should be reinvesting winnings to benefit from the compounding effect.

remember Einstein on Compound interest.

Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it. Compound interest is the most powerful force in the universe.

 

[DaveReading]

Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it. Compound interest is the most powerful force in the universe.

Not when you're starting with an average annual return of 1.25%, it isn't.

 

[furball]

A premium bond I've had for 55 years has just earned me £25. Can't decide I what to splash put on.

 

[BoldonLad]

Unless you have a large sum of money in an cash ISA, or, unless you are a higher rate tax payer, I can see no advantage in a Cash ISA over an ordinary Savings Account, since most people pay no tax on savings interest (I forget the exact figure, but, I think you can earn something like £1000pa in interest, before it is taxable).

The usual "good" advice, is to spread your risk, some cash, some equities (in an ISA), some PBs, some property even.

But, whatever you do, be assured, Politicians of all colours will want to spend it for you, because, they love spending other peoples money!

 

[PK99]

[QUOTE 5199014, member: 9609"]Maybe even a bitcoin, they seem to be a bit more sensibly priced now, have lost about 60% of their value since the bubble burst in December. If they go much lower I might have one. It is a completely mad currency with huge risks but it will peak again.[/QUOTE]

It is not a currency it is a digital asset.

 

[ColinJ]

It is not a currency it is a digital asset.

A really good way of annoying ped ants is to call them ped ants!

 

[Donger]

I regard my premium bonds as refundable lottery tickets and just sit back and wait for the payouts ... which so far seem to have roughly matched my ISAs.

 

[colly]

With regards to Bitcoin.

I understand there is a cash machine in a restaurant in Leeds where you can get 'real' cash out of your Bitcoin account.

The machine charges a massive 20% commission though.

I also understand its quite busy too.

 

[PaulSB]

I’ll tell you what is expensive, bloody kids!
I was chatting to my retired Dad and realised how frugal you can live once the mortgage is paid off and the kids are gone. We could quite easily save £2000 per month without a mortgage or kids!

Correct. With some sensible planning we manage on about £18k and don’t feel we miss out on anything. We certainly never say “we can’t afford to do that.”

 

[Alex H]

As there are a few quotes from moneysavingexpert.com, I thought I would just throw in this one as well.

If you owned every premium bond in existence, the amount won over a year would be equal to 1.15% of what you put in. So very roughly, for every £100 put into premium bonds on average, you'd expect a £1.15 annual return.

Same as an ISA, no?

 

[DaveReading]

As there are a few quotes from moneysavingexpert.com, I thought I would just throw in this one as well.

If you owned every premium bond in existence, the amount won over a year would be equal to 1.15% of what you put in. So very roughly, for every £100 put into premium bonds on average, you'd expect a £1.15 annual return.

Same as an ISA, no?

That's out of date.

Premium Bond rate boosted from 1.15% to 1.4% – should you pile in?

(MSE's verdict is still No)

 

[PK99]

[QUOTE 5201028, member: 9609"]easy to get 1.5 to 1.6% cash isa (2year)



shares have seen massive growths this last year or so but I can't see it continuing. 7% is poor, I have managed over 12 in the pension pot I self manage, (mainly SE Asia) would like a safe harbour for it now, trump is taking a big risk with this tariff bolloxs. My guess is stocks will be worth less in 12 months.[/QUOTE]

7% isn't poor for a low risk pot.
12% inevitably carries more risk

 

[vickster]

7% was a guess...If anyone is actually interested

Looking at last statement (Oct 2017)
About 6.5% over last 10 years
9-10% over 2017

It's a diversified investment fund, UK, EU, US, Japan, Asia ex Japan, emerging markets

I'm not that interested in financial stuff, but it's better than a cash ISA for sure

 

[vickster]

Natwest, have had it for years

Otherwise I have no idea what you are talking about