How's your luck with Premium Bonds?

[Ihavenojob]

Me £175
SWMBO £125
Son £475
Daughter SFA

 

[Collectors]

Only 20k in there these days as i am fitting solar at the moment & that took 5k out the kitty. But haven't one for 2 months & hopping tomorrow will top up the funds.
Still! I am doing better than a bank savings account, so that cant be bad.

 

[Justin Passing]

Negligibubble for me. 1.2% maybe.
Is anyone working out their figure pa?

 

[motorbiking]

Last year I didn't think I was doing well, but netted over 4.5%. Which as a top rate tax payer, is pretty good.

 

[gas112]

.

 

[Mottie]

£275. Not a bad start. I'd have to invest it at 6.6% to get that per month. Tax free too.

 

[motorbiking]

£225 for me

 

[fillyboy]

50 quid.

 

[Burnerman]

£250 for us this morning
John

 

[Ihavenojob]

I got £300, son got £50, SWMBO and daughter got zilch.

 

[Justin Passing]

£275. Not a bad start. I'd have to invest it at 6.6% to get that per month. Tax free too.

View attachment 383177

6.6% is a decent return for a high rate taxpayer, it's 12% equivalent. ( 6.6/0.55, is that right, I'm tired?)

The "base" fund I've been quoting has a flattening curve. This is the past 18 months; the last 12 months is about 12%, but you would be taxed on it as CGT. The highest rate for that is 24%, which takes the 12 down to 9.12.

 

[motorbiking]

I make that 9.6% for a top rate tax payer and 9.2% for a high rate tax payer. Were you compounding the winnings/dividends back in to the investment? If you are at the max, you can't do that.

6.6% is a decent return for a high rate taxpayer, it's 12% equivalent.

The "base" fund I've been quoting has a flattening curve. This is the past 18 months; the last 12 monbths is about 12%, but you would be taxed on it as CGT. The highest rate for that is 24%, which takes the 12 down to 9.12.
View attachment 383187

 

[Notch7]

my wife got £375 and I got £50

 

[Murdochcat]

self - zippo
misses - zippo
son - £100
daughter - zippo

 

[Justin Passing]

I make that 9.6% for a top rate tax payer and 9.2% for a high rate tax payer. Were you compounding the winnings/dividends back in to the investment? If you are at the max, you can't do that.

What am I missing? - if you earn £12 and your highest marginal rate is 45%, you get 6.60.
Not considering any reduction is tax free allowance, NI, compouding dividends or owt else.
And if yuoput the sam capital into a Fund somewhere, you'd pay less, as cgt.