Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

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

46 replies

AudTheDeepMinded · 26/09/2016 20:24

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?

OP posts:
bibbitybobbityyhat · 26/09/2016 22:17

£500 is nothing though specialsubject!

RebelandaStunner · 26/09/2016 22:20

It wasn't that long ago that cash ISAs paid 6-7% interest!
Last year our winnings from premium bonds were about 2% so ok.
We have both but Premium bonds are much more exciting than an ISA with the chance of winning big.

hefzi · 27/09/2016 03:48

My parents have various chunks in Premium Bonds - over the last ten years, they've averaged 3.4%: they are averse to anything stock market related, so probably not many other places they'd have got similar returns. Most months they seem to get a cheque or two, and there's still the possibility of winning big...

I, on the other hand, had a hundred quid in for 21 years and didn't win anything: and I've had another hundred in since earlier in the year, with the same result! It seems larger "blocks" do better, but I have no idea why that would be.

Jayfee · 27/09/2016 09:38

Not me...many years between the end!!

specialsubject · 27/09/2016 09:48

Size of stake should make no difference if multiplied by sufficient years and with 'average luck' - and that of course is why it is perfectly possible to win nothing!

Premium bonds are just the lottery except you keep your stake, less inflation.

Jayfee · 27/09/2016 10:03

Money saving expert explained it well

nannynick · 27/09/2016 10:13

My best return has been on company bonds but they are also high risk and they are now not offered (John Lewis did not do a new issue this year).

Premium bonds gives me some return some months and not others. It is a bit of fun though knowing that there is a chance of winning big.

Interest paying current account maxed out, regular saver maxed out, ISA rate dropped again, so looking for the next investment. S&S is probably the way to go to get a good return.

YelloDraw · 27/09/2016 10:31

What Trills said.

Statistically you will be worse off than the ISA but there is an element of fun and with returns so low elsewhere it isn't like you are going to lose a whole heap of interest.

BarbaraofSeville · 27/09/2016 10:36

If you can afford to take a bit of risk and are able to lock the money away for years, individual shares can also be good. They can be bought and sold cheaply online - the broker I use charges £6 per trade and the annual dividend can provide a good income - I have some shares with a 5% annual dividend. But obviously there's a risk, but can be good when you already have money in cash, property, PBs etc.

The chance of winning a million on the PBs is actually lower than the lottery. Statisically, you are better off putting your money in the interest paying current accounts (see MSE) and spending some of the interest on the lottery.

Original poster
AudTheDeepMinded · 27/09/2016 13:57

I think I'm going to go with the cheap thrills option and buy premium bonds. I'll keep you posted. This time next year we could be millionaires!

OP posts:
DiegeticMuch · 27/09/2016 14:38

I've had PBs since the 1970s- won nothing. I tried to cash them in last year but my letter was ignored - will try again.

Piratefairy78 · 27/09/2016 14:43

We used premium bonds when we were having building work completed and our saving scheme matured. We had the max of £50k and won at least £25 each month up to £100. It worked for us as it was so easy to withdraw a set amount within the week. We weren't worried about interest rates though (as it would be spent soon enough) and saw each £25 we won as a 'bonus'.

Chopstick17 · 27/09/2016 15:01

I have £2k in pbs and normally get about £25 to £50 a year in payouts.

ginghamstarfish · 27/09/2016 18:16

Until a few years ago we used to get at least 5% back on PBs, with about £10k worth. Then it dropped off and not worth bothering now.

Only1scoop · 29/09/2016 21:35

I've done it today Op, dp doing same tmrw, quite excited already for next drawSmile

nannynick · 08/10/2016 14:08

Just had a nice letter from NS&I. They must send out the bigger winnings earlier in the month. Alas not the £1 million but at least it's better than £25.
The percentage may not that be that great but it's nice when you get notified of winnings.

Original poster
AudTheDeepMinded · 19/04/2017 14:01

So, invested in January and finally have first pay out of £50! so made 5 % so far ( I think, maths a bit rusty)

OP posts:
Original poster
AudTheDeepMinded · 19/04/2017 14:02

Oops. 0.5%. But still better than a lot of ISAs!

OP posts:
Handbag101 · 19/04/2017 18:07

Come and join us on the premium bond chat thread. It's so friendly and fun and every month we all talk about who has been lucky (and who hasn't).

Original poster
AudTheDeepMinded · 19/04/2017 21:04

Thanks Handbag. Where might one find it then?

OP posts:
khajiit13 · 19/04/2017 21:33

I invested £400 in Jan and won £25 this month Smile

New posts on this thread. Refresh page