A tip for savers

[JohnD]

The Prize Fund for Premium Bonds is currently still 1.25%.

Prizes are tax free. You can have them automatically reinvested if you want.

The chances of winning a million are so small that you might as well base on your expectations on the average payout. Each month you might be lucky or unlucky, but over time, on average, you will get about the rate.

http://www.nsandi.com/our-products

 

[HawkEye244]

I think it's person specific, older people have more to benefit from the bonds on that expectation of 1.25% but for working age people investing in bonds is pointless, you can make your money work better from stock, shares or investments but obviously increased risk. Of course there's a chance you might win big but I think there is higher odds of winning the euromillions (perhaps someone can work it out).

 

[JohnD]

NS&I also offer a 1% ISA and a 0.8% savings account.

I'm thinking more of anyone with a deposit account of some kind which the bank may have winched down to 0.001% or thereabouts. There's been another round of cuts in the last month. Very relevant too if you are saving for a house deposit or something.

My bank for example offers on their instant saver account

Effective from 31 October 2016
0.01% for balances under £50,000

and on their ISA
0.05% for balances under £25,000

So the annual interest on a thousand pounds wouldn't buy you a cup of tea.

 

[DRM]

http://www.telegraph.co.uk/investing/bonds/martin-lewis-this-is-why-you-should-dump-premium-bonds/

 

[Ihavenojob]

So what is he suggesting, put it on the gee gees ?

 

[JohnD]

he says "With £1,000 saved you’ve a less than 1 in 3 chance they’ll beat a 1.45pc savings account, even with £50,000 in it’s at best 1 in 6. "

If you can find a 1.45% savings account, take it, and so will I.

 

[HawkEye244]

That's £14 a year on a grand

 

[misterhelpful]

So what is he suggesting, put it on the gee gees ?

You didn't get it from me*, but More Mischief in the 6.35 at Galway is a hot tip from a fella who knows the owner.


*DISCLAIMER
Gambling is a mug's game, says I.

Edited at 18.57 BST
Told you it was a mug's game....nowhere to be seen!

 

[Ihavenojob]

That's £14 a year on a grand

Which at the moment is a very good rate.

 

[HawkEye244]

Which at the moment is a very good rate.

I'm excited about that

 

[HawkEye244]

Apparently £14 will get you 4 indonesian lady boys for 3 nights

Source : my mate dave

 

[DRM]

http://www.moneysavingexpert.com/savings/premium-bonds-calculator/

 

[crystal ball]

Martin Lewis was on R5 today saying PBs are a reasonable investment at the moment, but they will have to cut the prize rate soon as NSI are not allowed to be too competitive against commercial banks

 

[HawkEye244]

Martin Lewis was on R5 today saying PBs are a reasonable investment at the moment, but they will have to cut the prize rate soon as NSI are not allowed to be too competitive against commercial banks

Why not ?

 

[mikeey84]

Why not ?

Because they are a government institution and it can't be too competitive. If it was too competitive it would skew the market