Premium Bonds

[Mungler]

Premium bonds are safe and if interest rates were at 5% and inflation at 1% no one would contemplate them.

It’s tricky because unless you are ‘in the know’ and know what investment to safely back or have a skill set (eg property developer, rental landlord, bitcoin trader) then looking at rates of return of 1 or maybe 2% when inflation is running rampant - well, it’s hardly worth the bother. I reckon there’s more money in stockpiling old land rovers.

[dead eye alan]

My wife and I both have the maximum allowance of bonds, its fascinating how we are both getting about the same return. Over a year its paid 1.3% each. Funny that isn't it.

[Dave at kelton]

Put a little on one side each year for the grandkids when they reach 18. Get occasional wins but never had anything mega.

[Minky]

There's only two real things in this life and as you know, it's death and taxation. Mrs and I have funds dispersed in different places.  Most months we both get 3-4 hits each on the bonds and she did peak out at 10k one time, but some months... 0.  ISAs do do better but when covid came along we both lost 8k just like that.  Most if not all has come back but you have to take a long term view and be aware of the risks but not getting into a panic. Saying that, the NFU funds took a drop last quarter.   A strange thing is that when we took out  ISAs with NFU, I went medium risk, she went low risk.  Over the years her ISA has all ways out performed mine. Anyone got a tip for the 4.30 at Kempton park other than Charlie's Lad.?

Edited November 16, 2021 by Minky

[Mice!]

On 15/11/2021 at 15:38, Cranfield said:

If you are risk averse and don't want to lose any of your capital, then Premium Bonds (instant access) are a good option.
With most instant access savings accounts the interest rate is less that 1%.
Even non fixed ISA's are only around 0.67%.
Its not really a good time to be a saver.

I'd go with this, we seem to win £50-100 a month,  no idea how much is in them, but there is pretty much nothing else you can do without tying your money up or taking risks.

[Oly]

Premium Bonds are ok (much better than the lottery! or banks presently) but will always reflect the interest rates of the day. 

Everything else is a risk, but if you say hold the maximum value of bonds you could remove a small proportion and invest in a stocks & shares isa and earn far more than the majority of the rest of your cash can in bonds winnings...whilst also protecting the majority of your funds (in bonds). 

Given the way the world is going in the face of the climate crisis shares funds in renewables like Blackrock offer, and stocks of new electric car companies are providing great returns. Take a look at the charts for the likes of Rivian, Lucid, Fisker, Nio & of course Tesla. 

Of course it's all at your own risk and it's worth doing a little Internet research, but only using a proportion of your capital (so less of a risk), and investing in only a couple of funds or companies makes it easier to manage/keep an eye on. 

[Bigbob]

i posted this before but when a mate and i got our retirement money he put 50 k into bonds first year won £750 keeps telling me more than he would of got from a bank LOL 

[Rim Fire]

The misses came home today from shopping and said she checked bank statement and we had £50 in last months draw