# Premium Bonds vs. Cash ISA



## Maggi200

Guaranteed interest at a lower rate, or possibility of a prize, of which any would be worth more than the interest earned? 

I would be using very nearly my entire allowance before April and continue to add monthly thereafter. 

I currently bank with Lloyds, and I believe the interest rate during the first year is 1.75% and 1% after 12 months. Where is the best instant access cash isa at the moment? I know it's not really a great time to save!


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## slineclean

Premium bonds for me now , until many years have pasted and interest rate goes up. Isn't worth the risk . I've lost money everytime I took the banks advice . I've had far more in return from premium bonds


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## DMH-01

If your lucky then Premium Bonds can give you a fairly decent return. Family friend has the maxium 30k worth and is nearly always winning a prize each month (one month she won 5k).

Comparisons of Cash ISA's...

http://www.moneysupermarket.com/savings/cash-isas/


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## danwel

My mum has her money in premium bonds as the interest rates are terrible with the banks


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## steveo3002

if you can afford the full 30k then the premiums bonds aint too bad , we win something nearly once a month and won 500 the other year

the g/f had £15k of her own and hardly ever won jack , then theres still a chance of a big win which you will never get at the bank


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## luke123

Im looking to put my tax rebate i get in april in bonds not 30k but stil 1.5k


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## majcas84

Neither if you want to earn a return above inflation. Use the isa allowance to go for unit trusts - equities (or corporate bonds if you're a bit more cautious). 
The odds of winning a big prize on premium bonds are minuscule. Much lower odds even than a lottery jackpot.


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## PaulTheo

It works out at 1.5% at the moment so slightly worse than the savings interest rate for a person with average luck. But we all want to be lucky so always worth a punt. :tumbleweed:


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## Maggi200

Tbh I only want a regular cash savings with instant access. And I only have one place I would trust for anything remotely linked to any market, and I audit them so can't really use them  

The instant access is something require, depending on where my new venture takes me and when.


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## majcas84

maggi133 said:


> Tbh I only want a regular cash savings with instant access. And I only have one place I would trust for anything remotely linked to any market, and I audit them so can't really use them
> 
> The instant access is something require, depending on where my new venture takes me and when.


All comes down to whether you like a gamble or not then.
Someone beats the odds every single month, so you never know!
Good luck.


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## Alan W

steveo3002 said:


> if you can afford the full 30k then the premiums bonds aint too bad , we win something nearly once a month and won 500 the other year


Similar experience for me also Steve although my best has been £1000! :thumb:

I would agree the return is only modest but there's no risk, you can get your money back easily and quickly and there's also the chance you could win an awful lot more! 

Alan W


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## willwander

majcas84 said:


> Neither if you want to earn a return above inflation. Use the isa allowance to go for unit trusts - equities (or corporate bonds if you're a bit more cautious).....


Err, good luck with that...


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## steveo3002

Alan W said:


> Similar experience for me also Steve although my best has been £1000! :thumb:
> 
> I would agree the return is only modest but there's no risk, you can get your money back easily and quickly and there's also the chance you could win an awful lot more!
> 
> Alan W


how long had you had them before winning the £1000

we had ours about 4 years before the £500


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## majcas84

willwander said:


> Err, good luck with that...


Historic returns from equities versus cash speak for themselves.
It's premium bonds where the luck is required. It's a prize-draw after all.


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## Maggi200

Perhaps it could be kept between *CASH* ISA's and Premium Bonds per my original post. I asked about the two and not any other type of financial product.

I have before removed a small amount from the Premium Bond's I held and found the process wasn't particularly streamlined. Has it improved in the last couple of years?


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## steveo3002

g/f cashed her premium bonds in last year , you print off a form and sign it , send it to them and the payment will be paid into your bank


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## Maggi200

Yeah I did it a couple of years ago, tbh reasonable hassle to print forms, identify the range of bonds and a certificate number and then send via post. Whereas I would prefer it to be dealt with via online banking. I've still got some bonds but never won anything yet.

Think for convenience and so I know what I'll be gaining I may just open an ISA as I can easily move money when I need to


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## Alan W

steveo3002 said:


> how long had you had them before winning the £1000
> 
> we had ours about 4 years before the £500


Probably 4 or 5 years also Steve.

Alan W


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## Maggi200

Well I hope to have already purchased a house before that long


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## steveo3002

i dont think you are going to get rich from any savings atm , just be sure if something happens the money is safe


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## luke123

A family friend out my parents sold there house and while looking for another house and renting put all the money into bonds and they won the 2nd prize cant remember how much it was but they have a bloody big house now


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## Bero

You never know, it does happen to some people.

I love seein people with tiny holdings winning big.

A quick scan shows someone with just a £300 bond bought 10 years ago winning £5,000



luke123 said:


> A family friend out my parents sold there house and while looking for another house and renting put all the money into bonds and they won the 2nd prize cant remember how much it was but they have a bloody big house now


£100,000 currently.


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## Alan W

luke123 said:


> A family friend out my parents sold there house and while looking for another house and renting put *all the money into bonds *and they won the 2nd prize cant remember how much it was but they have a bloody big house now


Maximum investment is £30K per person.

They were very lucky to win so quickly!

Alan W


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## Maggi200

Well my bonds haven't won anything in 5 years, always had a minimum of £1,000 held. I can't be very lucky!


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## PaulTheo

I have had just over 500 for about 5 years and won £1000 on my birthday last year which was a good result. I did look at registering for an online account to buy some more but you have to download a form and print it out, fill it in and post it WTF? So I still only have about 500 :wall:


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## CGRD

Same experiences with Premium Bonds, I have maximum personal allowance and am allways getting £25s, used to be £50s though  not had a big one though, still have fingers crossed.


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## Radish293

Try this link to Martin Lewis web site. I like his advice.

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


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## James_R

maggi133 said:


> Well my bonds haven't won anything in 5 years, always had a minimum of £1,000 held. I can't be very lucky!


Hi maggi :wave:

When I bought the RS133 last year i transferred the money out my savings same day and the balance is still earning a nice rate (compared to others anyway)

Natwest e-ISA is getting me 2.25%
Its online only, I transferred my old Cash-ISA funds in very easily too.

I think its about 1% over and above the standard in branch rate.
James


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## Maggi200

What's the minimum deposit? Close to the allowance for this tax year? 

That's a good rate, strangely it didn't seem to be mentioned on the money supermarket list others mentioned. Do you also need to bank with them already? Ill happily move my accounts across as I've only recently streamlined my DD to a few small ones in a bid to kick start my fund. 

I will also need to set up a business account soon, as ill be trading myself, so perhaps should look at this all at once :lol: cheers for the advice! 

Btw I haven't forgotten to text you but I haven't even been your way for ages. The 133 has done 1000 miles or so since October including trips to Birmingham for muse and Lincoln for Xmas.


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## James_R

maggi133 said:


> What's the minimum deposit? Close to the allowance for this tax year?
> 
> That's a good rate, strangely it didn't seem to be mentioned on the money supermarket list others mentioned. Do you also need to bank with them already? Ill happily move my accounts across as I've only recently streamlined my DD to a few small ones in a bid to kick start my fund.
> 
> I will also need to set up a business account soon, as ill be trading myself, so perhaps should look at this all at once :lol: cheers for the advice!
> 
> Btw I haven't forgotten to text you but I haven't even been your way for ages. The 133 has done 1000 miles or so since October including trips to Birmingham for muse and Lincoln for Xmas.


I dont know if youve got to bank with them or not. Have a look on the NW website.

My 133 spent most of Dec/Jan in and out of the stealership for warranty work.

That fed up with it I sold it and bought a CR-Z. :thumb:


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## STEALTH K3

Will be going for the full 40k this week had a bit of money in the bank and what a ball ache it was getting chased up for the tax I owed all of £160.


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## shine247

Pity you did not invest it two years ago when the last post was made, you may have been posting "how to invest a million" or "I just spent a million on products" Good luck though, when the rates go up it will be better.


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