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To cash in ISA and put it all into premium bonds?

(47 Posts)
AudTheDeepMinded Mon 26-Sep-16 20:24:54

I reckon I'll probably make in payouts what I would in interest with ISA over a year. Anyone else put this to the test?

specialsubject Mon 26-Sep-16 20:28:26

Premium bond payouts have also dropped - and of course you are more likely to get zero.

Grab the interest paying current accounts while you can- but as carney continues the madness, all of us are watching our savings vanish wuth inflation.

HereIAm20 Mon 26-Sep-16 20:31:43

We had some money that was earmarked for certain things which we put in the full amount for a six month period ( as we needed quick access to it too). In that time we had a number of £50 wins so much so that it totalled 5% of the amount in PBs in the six month period. We wouldn't have got that return elsewhere but I guess we were lucky (although we had heard the same happened to a friend so it was worth a short term punt for us). Good luck - you may win the £1million -or you may not

Only1scoop Mon 26-Sep-16 20:36:08

Yanbu
I took a some out of my ISA and did exactly that.
In 5 months have already had a 50 and 2 25 pound wins.
Rather chuffed.

AudTheDeepMinded Mon 26-Sep-16 20:36:43

That's what I'm hoping HereIAm20

TheWoollybacksWife Mon 26-Sep-16 20:44:30

DMum has about £10k in Premium bonds and has had wins totalling nearly £1,000 for each of the last three years. That's a better return on investment than any ISA she could have taken out.

Shitonyoursofa Mon 26-Sep-16 20:45:55

I get 25 quid most months, way more than I'd get in interest in my ISA

MatildaTheCat Mon 26-Sep-16 20:50:39

My tracker ISA has performed well in the last six months but the stocks and shares not well. I've had wins every month on the premium bonds, between 25-150. The bonds are more fun as once a month you get to check. Returns are statistically still pretty low but when interest rates are so low it's fun. PPs mother has been unusually lucky.

exLtEveDallas Mon 26-Sep-16 20:55:17

We had the max in PBs when the minimum prize was £50 and the first year won £1200.

Then they put the max up and dropped the minimum prize to £25. Our 'winnings' halved overnight.

We've got half the max now and probably don't win more than £200 in a year.

PBs are great if you've got £50K in, not really worth it with less.

Rrross1ges Mon 26-Sep-16 20:56:25

I've had premium bonds for ten years. I've won nothing. Not a fucking penny.

JeanPadget Mon 26-Sep-16 21:22:07

They put this very question to a statistician on More Or Less (R4 programme about, ermm, stats blush) recently. He said you'd be better spending the interest on your ISA buying a lottery ticket every week, as you were more likely to get a big prize on the lottery. Having said that, I've still got some money in Premium Bonds.

Crispsheets Mon 26-Sep-16 21:26:47

I've had £5000 in premium bonds for 3 months and no win yet 😞

bibbitybobbityyhat Mon 26-Sep-16 21:28:21

What interest would you have earned in your isa?

We put spare cash in premium bonds. Some parts of the year we have a lot of spare cash (as we save for tax - both self employed), some parts of the year we have £0. We don't have massive cumulative savings.

We figure that the annual £50 or so we lose in interest is worth a punt.

Inthebathprobably Mon 26-Sep-16 21:29:33

Some of mine at 40+ years old as bought for when I was born. Never won a thing.

Only1scoop Mon 26-Sep-16 21:32:23

shock

LonnyVonnyWilsonFrickett Mon 26-Sep-16 21:33:27

I like PBs because they're safe and it's easy to pay in and withdraw money with no penalties. We win quite frequently, probably £200 - £400 a year? My bank is currently offering 0.5% interest so that seems quite attractive tbh.

Only1scoop Mon 26-Sep-16 21:33:58

Wrong thread

Titsdown Mon 26-Sep-16 21:39:15

DP and I had the max in (so £80k total) for 18 months before we bought our house. Return was 1.05% pa - which is better than any of my ISA offers at the mo (but not as good as high interest current account, even though that's taxed).

LurkingHusband Mon 26-Sep-16 22:02:30

In 2000, I got a better job, and MrsLH and I decided to invest a bit.

Over that time, we saw 2 "once in a lifetime" financial crises.

The only investment that has continuously outperformed has the one deemed as "highest risk" - a S&S ISA (Thank you standard life).

Make of that what you will.

The worst performance came from some Life products, which only just managed an even return - over 10 years. (Showing we did spread risk).

specialsubject Mon 26-Sep-16 22:05:33

£500 Premium bonds for decades. Win - zero.

bumbleymummy Mon 26-Sep-16 22:07:12

We have quite a bit in premium bonds at the moment but we've won nothing sad

LondonPainter Mon 26-Sep-16 22:10:06

I've just done this, as my ISA was down to 0.25% and have won 1.8% in PB in the last year.
Stocks and shares would be better though, if you don't mind the risk smile

Tiredandtested Mon 26-Sep-16 22:11:31

I got 6% in PBs 2 years ago, and <1% last year. I've cashed them in to top up my ISA.
If anyone finds something decent I'd be interested to know.

Trills Mon 26-Sep-16 22:12:08

You are almost certainly going to be worse off with Premium Bonds than with your ISA.

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

BUT I like them anyway.

I am gambling the interest I would have got from my ISA.

I might win, I might lose.

Piscivorus Mon 26-Sep-16 22:15:08

We have got rid of ours as we won so little they were not worth having

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