£30k to invest
Discussion
Well have a lot more but thinking about Premium bonds.
I do not want to put this into Mortgage overpayments due to the risk of being out of work so would consider this to be a slush fund/mortgage fund to cover best part of 2 years mortgage payments.
So given savings is worthless on the interest my view is that I'm not "gambling" much in the way of lost interest.
I have significant amounts invested in equity and have lost (paper loss so far) very very significant amounts over the past 18 months and as this is a slush fund it might make sense/no it does make sense to have it 100% safe.
Therefore would anyone say its not worth it? Clearly the probability of winning anything significant is tiny BUT there are 2 PB holders PCM who win £1m each.
So views please.
(Might consider also maxing out the Mrs's PB's too).
I do not want to put this into Mortgage overpayments due to the risk of being out of work so would consider this to be a slush fund/mortgage fund to cover best part of 2 years mortgage payments.
So given savings is worthless on the interest my view is that I'm not "gambling" much in the way of lost interest.
I have significant amounts invested in equity and have lost (paper loss so far) very very significant amounts over the past 18 months and as this is a slush fund it might make sense/no it does make sense to have it 100% safe.
Therefore would anyone say its not worth it? Clearly the probability of winning anything significant is tiny BUT there are 2 PB holders PCM who win £1m each.
So views please.
(Might consider also maxing out the Mrs's PB's too).
Personally at present I think they are a good idea, they are also easily accessible if say you do loose your job.
About all we have left at the moment but the odds have been slashed massively.
Other alternatives is to look into ETF's or an ishares account.
People seem to be doing ok with these at present
About all we have left at the moment but the odds have been slashed massively.
Other alternatives is to look into ETF's or an ishares account.
People seem to be doing ok with these at present
voicey said:
I have just invested £50k with Close Brothers - 2 year fixed rate bond paying 5.00%pa. Got to be quick though - applications close today (a few people I work with are personally delivering their applications).
Thats too inflexable for me sadly as may need access to it in Sept &/or on a monthly basis to pay the mortgage (IF I dont get a new contract).My certificates are here in front of me, waiting to be cashed in.
Invested the maximum amount last April and did well at first, (£400 back in the first month, for instance). However, with interest rates the way they are now, and only £50 won in the last three months, I've decided it's time for something new.
So it's going to be split between the mortgage, the pension and the highest rate instant access account I can find.
After the February draw...
Invested the maximum amount last April and did well at first, (£400 back in the first month, for instance). However, with interest rates the way they are now, and only £50 won in the last three months, I've decided it's time for something new.
So it's going to be split between the mortgage, the pension and the highest rate instant access account I can find.
After the February draw...
mechsympathy said:
okgo said:
I was reading that due to recent changes in the prize pool these were not really viable?
Payouts have halved.Or lets say a more likely 3% interest rate then thats a gross return of £270.
Min PB payout is £50. So in the 6 draws I'd basically need to win 5/6 times to be at parity with 3%, HOWEVER I have a probability of winning big without risk.
Effective interest rate is now 1.8% on premium bonds, but you stand a good chance of earning less than that (and a much smaller chance of earning more).
MSE have a calculator; put in £30k and you only have a 57% chance of earning £500 or more. 1.16% chance of £1000 or more. Even as a higher rate taxpayer you should get £800 from one of higher interest savings accounts - there's an Investec one now that pays the average of the top 5 savings accounts each month to save all the switching around. You do need to keep at least 25k in it though.
MSE have a calculator; put in £30k and you only have a 57% chance of earning £500 or more. 1.16% chance of £1000 or more. Even as a higher rate taxpayer you should get £800 from one of higher interest savings accounts - there's an Investec one now that pays the average of the top 5 savings accounts each month to save all the switching around. You do need to keep at least 25k in it though.
Sorry, forgot link: http://www.moneysavingexpert.com/savings/premium-b...
I bought £5k of NS&I premium bonds some years ago and held them for 6 months and 'earned' an 8% return, tax free. Not bad I suppose.
I bought a pile recently and have only won £50, far from the previous return I was averaging. I guess it's down to the luck of the draw. You'll see from the NS&I site that some folk with smaller holdings can do just as well with those with the maximum £30k level. If my lack of return continues I'll have to reconsider my original investment decision.
I bought a pile recently and have only won £50, far from the previous return I was averaging. I guess it's down to the luck of the draw. You'll see from the NS&I site that some folk with smaller holdings can do just as well with those with the maximum £30k level. If my lack of return continues I'll have to reconsider my original investment decision.
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