Premium bonds v ISA?

[vickster]

I'll need to decide whether to put more in up to the allowed limit once my accounts come through and I know what divis to pay myself.

I'm also sticking £500 a month into a reg saver (at 1.85%) - I'll need to seek another of those once the first year term ends

Cash ISAs are likely to be utterly pointless (although I do have a couple)

 

[BoldonLad]

Clearly not risk free but my Shares Isa opened in April/May is up around 10.3% currently (mix of low and medium risk)

Yes, I always preferred Shares ISA (self select). Been retired now for 14 years, so, switched my holdings to income rather than capital growth. Did quite nicely, until Covid, currently about 5% down on Capital, but, returning 4.5%pa, so, on balance, I am reasonably happy with my selections.

 

[simongt]

I am up on any interest that ISA's can pay.

We've money in Premium Bonds and likewise, they've paid out more than any investment account.

 

[Flick of the Elbow]

Just checked on my ISA, after fees and charges it’s up 6.7% on the year.

 

[PK99]

Premium bonds are a good home for short term cash in times of very low interest rates as they are risk free and the foregone interest is an entry in the monthly lottery but as a long term investment vehicle they are a poor bet - A Stocks & Shares ISA pot is a much better home for long term money.

 

[SpokeyDokey]

Premium bonds are a good home for short term cash in times of very low interest rates as they are risk free and the foregone interest is an entry in the monthly lottery but as a long term investment vehicle they are a poor bet - A Stocks & Shares ISA pot is a much better home for long term money.

The liquidity angle was important for us as well.

We used to have a lot more ISA's, and although we never had to we could've always terminated one and stood the 90 or 180 day interest hit if needs be.

Since shifting from ISA's to FRB's over the past 4 or 5 years the early termination option has obviously diminished.

At one stage our Santander 123 a/c's were handy for quick access especially when they were paying 3% - heady days!

Whilst we are fortunate that our unearned income exceeds our expenditure we do like to have a bit of liquidity on tap for if we fancy a splurge. Premium Bonds seem to fit the bill nicely at the moment.

 

[Flick of the Elbow]

We used to have a lot more ISA's, and although we never had to we could've always terminated one and stood the 90 or 180 day interest hit if needs be.

Is there a difference I wonder between ISA’s through IFA’s and “branded” ISA’s from banks etc ? My ISA is through an IFA and I don’t believe there is any notice period, if I want him to sell any of it I just need to instruct him and he will do so as per the usual market process.

 

[BoldonLad]

Is there a difference I wonder between ISA’s through IFA’s and “branded” ISA’s from banks etc ? My ISA is through an IFA and I don’t believe there is any notice period, if I want him to sell any of it I just need to instruct him and he will do so as per the usual market process.

The term ISA covers a range of products.

To begin, there are several types of ISA:
- cash ISA
- Shares ISA
- lifetime ISA
- help to buy ISA

I may be out of date with last two, since they don’t apply to me (not a first time buyer and not under 40).

 

[vickster]

Is there a difference I wonder between ISA’s through IFA’s and “branded” ISA’s from banks etc ? My ISA is through an IFA and I don’t believe there is any notice period, if I want him to sell any of it I just need to instruct him and he will do so as per the usual market process.

Maybe he means a fixed term (cash) product?

 

[NorthernSky]

i stuck most of mine in premium bonds recently. was just depressing looking at the interest rates on saving accounts
may as well be in with a minute chance of winning something

 

[MontyVeda]

Does anyone ever win a Million with PBs?

 

[vickster]

Does anyone ever win a Million with PBs?

Yes. Two a month
https://www.nsandi.com/get-to-know-us/monthly-prize-allocation#

 

[annedonnelly]

Martin Lewis has recently updated his info on Premium Bonds and whether it's worth having them - link

 

[NorthernSky]

Yes. Two a month
https://www.nsandi.com/get-to-know-us/monthly-prize-allocation#

beat me to it
also - https://www.nsandi.com/prize-checker/winners
it's a miniscule chance but it does happen

 

[vickster]

Martin Lewis has recently updated his info on Premium Bonds and whether it's worth having them - link

I see them as an utterly low risk, easy to access place to have money with the likelihood of a few quid a month tax free. Far better than a cash isa!