premium bonds or ISA or something else.
Discussion
so started working as a postman about 5 months ago, and over that time which included buying a car, just paid off another years insurance which since im 18 took a heavy blow, ive managed to save over £2000, which is currently sitting my bank account and it isnt really doing anything for me,
the money is pretty dormant, i like to treat myself every now and then. but have a good saving ability.
only thing is im not up to scratch on the millions of different accoutns i can have.
but with some quick maths and with the cash isa's being at a very low interste rate 2.5 i believe highest ive seen. doesnt seem very effictive for a year.
also i was looking at premium bonds, i know the chances of winning big are incredibly slim, but even a small win will equate to more than a year in a savings account.
basically in a nutshell, ive got some money that im doing nothing with, and i would rather it making at least some more money for me than nothing, but at the same time being safe.
the money is pretty dormant, i like to treat myself every now and then. but have a good saving ability.
only thing is im not up to scratch on the millions of different accoutns i can have.
but with some quick maths and with the cash isa's being at a very low interste rate 2.5 i believe highest ive seen. doesnt seem very effictive for a year.
also i was looking at premium bonds, i know the chances of winning big are incredibly slim, but even a small win will equate to more than a year in a savings account.
basically in a nutshell, ive got some money that im doing nothing with, and i would rather it making at least some more money for me than nothing, but at the same time being safe.
premium bonds are a safe bit of fun, you are essentially buying monthly lottery tickets with the interest you could have earnt in a cash ISA ...so gambling £40 ish over a year
you can get your money back at under a weeks notice, and its safe...and theres always the chance of a win
Id probably do that for safe bit of fun for a year or so....
if you are more adventurous, Id have put £2K into BP shares or suchlike, but of course, theres risk wheres theres reward....
you can get your money back at under a weeks notice, and its safe...and theres always the chance of a win
Id probably do that for safe bit of fun for a year or so....
if you are more adventurous, Id have put £2K into BP shares or suchlike, but of course, theres risk wheres theres reward....
bogie said:
premium bonds are a safe bit of fun, you are essentially buying monthly lottery tickets with the interest you could have earnt in a cash ISA ...so gambling £40 ish over a year
you can get your money back at under a weeks notice, and its safe...and theres always the chance of a win
Id probably do that for safe bit of fun for a year or so....
if you are more adventurous, Id have put £2K into BP shares or suchlike, but of course, theres risk wheres theres reward....
I've been buying premium bonds for exactly the reasons above. Checking online to see if you've won anything each month is abit of fun and with interest rates being where they are and the amount of money you're talking about, its not costing you a fortune to have them and the (remote) chance of touching for a big win.you can get your money back at under a weeks notice, and its safe...and theres always the chance of a win
Id probably do that for safe bit of fun for a year or so....
if you are more adventurous, Id have put £2K into BP shares or suchlike, but of course, theres risk wheres theres reward....
I'd recommend them in the current climate.
As JN implies, above, make sure you have no borrowings (which will almost certainly be charging more than you can get in interest) first.
Premium bonds currently distribute 1.5% as interest and the odds of winning are about 24000:1, so you will, theoretically win once a year if you put your £2k in. The most common (~1.5million of them a month) is £25 and then the larger sums are far less frequent (only 30,000 £50 prizes). The odds on winning the £1M are several billions to one (far, far worse than the lotteries), but of course you don't keep your lottery stake.
So, you should win £25 a year, but of course you may well win nothing, or, highly unlikely, more. If interest rates rise, then the number of prizes rises as well, and they could bring back the minimum £50 prize.
Premium bonds currently distribute 1.5% as interest and the odds of winning are about 24000:1, so you will, theoretically win once a year if you put your £2k in. The most common (~1.5million of them a month) is £25 and then the larger sums are far less frequent (only 30,000 £50 prizes). The odds on winning the £1M are several billions to one (far, far worse than the lotteries), but of course you don't keep your lottery stake.
So, you should win £25 a year, but of course you may well win nothing, or, highly unlikely, more. If interest rates rise, then the number of prizes rises as well, and they could bring back the minimum £50 prize.
You could try learning to spread bet. However some very important rules!!
Regard it as cash investing with some leverage. So look for shares that have a trading range you are comfortable with. e.g. Royal Sun Alliance that moves between 115p and 130p, giving you a range to trade over.
Only make small bets intially, e.g. £1 a point so you're profit/loss is managable.
Be patient, don't expect to make money immediately, have some conviction to your purchases/sales.
Above all don't get carried away, treat it as a simple, tax free way to invest that allows you to make more of your savings that cash inevsting.
It's well worth setting up a dummy account with someone like capitalspreads before you start using real money.
Regard it as cash investing with some leverage. So look for shares that have a trading range you are comfortable with. e.g. Royal Sun Alliance that moves between 115p and 130p, giving you a range to trade over.
Only make small bets intially, e.g. £1 a point so you're profit/loss is managable.
Be patient, don't expect to make money immediately, have some conviction to your purchases/sales.
Above all don't get carried away, treat it as a simple, tax free way to invest that allows you to make more of your savings that cash inevsting.
It's well worth setting up a dummy account with someone like capitalspreads before you start using real money.
Dear paulmeow,
No borrowings, that's excellent.
Now what have you got for emergencies? A cautious approach would be up to a months salary. I'd go for the best instant access ISA you can find, it won't be much, 2.5 - 3% but anything's better then nowt.
Less cautious might be a prearranged overdraft if your bank offers it. I've used mine once and cleared it next month.
This may be opening a wormy can but as I'm playing Mr Sensible do you get a pension as part of your emoluments? (Sorry, salary, I just like that word
),
regards,
Jet
paulmeow said:
i have no borrowings etc, and minimal outgoings (fags and petrol mainly)
Not at the same time I hope No borrowings, that's excellent.
Now what have you got for emergencies? A cautious approach would be up to a months salary. I'd go for the best instant access ISA you can find, it won't be much, 2.5 - 3% but anything's better then nowt.
Less cautious might be a prearranged overdraft if your bank offers it. I've used mine once and cleared it next month.
This may be opening a wormy can but as I'm playing Mr Sensible do you get a pension as part of your emoluments? (Sorry, salary, I just like that word
),regards,
Jet
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