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Original poster

Where would you put 12k?

25 replies

EnglishGirlApproximately · 05/09/2020 13:44

As above really! We have 12k put aside ready to move house next year (will be 16k by Christmas). At the moment its earning nothing sat in a savings account. Would you put it in premium bonds? Are they Safe? I know the interest rate will still be poor but I'm thinking at least there's a chance of getting some return however small.

OP posts:
ChessieFL · 05/09/2020 16:18

It depends if you’re counting on it earning at least some interest. If you put it in premium bonds you will get your £12k back but you might not win anything so wouldn’t get any return. On the other hand you could win £1m! You could try the NS&I income bonds, which despite the name is just a savings account that pays out the interest on a monthly basis to a separate account and is one of the highest paying easy access accounts at the moment (1.16%).

If you can tie the money up for a year you might be able to get a slightly higher rate so it depends when you will need the money. Have a look at www.moneysavingexpert.co.uk

MrsWooster · 05/09/2020 16:20

Definitely premium bonds.

anonacatchat · 05/09/2020 16:22

You're not going to see much more than circa 1.1% which isn't much so yes might as well chance it on a premium bonds account but I wouldn't expect anything .

ThroughThickAndThin01 · 05/09/2020 16:24

Premium bonds for sure.

Bertyb7 · 05/09/2020 16:27

Another option would be a Marcus account as it has a 1.05% interest rate which is higher than other banks

Chicchicchicchiclana · 05/09/2020 16:27

I have about that much in premium bonds, maybe a little less. I've won about £200 ish in the last 2 years.

toomanyspiderplants · 05/09/2020 16:33

Yes to pb's. safe and someone has to win!

TOFO1965 · 05/09/2020 16:34

NS&I, unlikely to win big but you never know! You’ll earn beans on it anywhere else, so you’re not really losing anything.

Brahumbug · 05/09/2020 17:57

Bertyb7

Another option would be a Marcus account as it has a 1.05% interest rate which is higher than other banks

Isn't marcus closed to new applications at the moment?

Original poster
EnglishGirlApproximately · 05/09/2020 18:54

Thanks all, thought premium bonds might be the best option. I don't really want to tie it up for more than a year as we were originally planning to move house this summer. Concerns over job stability and the housing market are making us hang fire but we want the flexibility to get it out if things change for the better.

OP posts:
MissCalamity · 06/09/2020 20:05

We've invested quite a large amount in premium bonds and won £50 in the first monthly draw. 👍
We want to be able to get the money out easily as we'll be doing home improvements.

Jo0070 · 06/09/2020 20:10

NS&I would be like buying a load of lottery tickets - but knowing you'll get the full amount back when you're ready to cash in. It's a government scheme.

just check you're tied in for a set time - I don't think you are with NS&I bonds

Original poster
EnglishGirlApproximately · 06/09/2020 21:08

@MissCalamity thats great, better return already than from a standard savings account!
@Jo0070 as far as I can see I can request it back anytime online and it takes 48 hours. When you put it like that as a comparison to the lottery I guess why wouldn't you? Its a no lose option right now.

OP posts:
jolokoy · 06/09/2020 22:44

If you're eligible, a Lifetime ISA.

RubixMania · 07/09/2020 11:08

Personally I love Premium Bonds...they appeal to the gambler in me without me actually having to risk anything!

Murinae · 07/09/2020 11:16

I have premium bonds. Your money is safe and maybe you’ll win something. Other than that ns&i bonds are recommended at the moment from Martin Lewis at 1.16% interest so with premium bonds all your effectively gambling is that interest.

PontiacBandit · 07/09/2020 11:19

Income bonds as it gives a guaranteed return.

tornadoalley · 07/09/2020 11:31

My £16K in premium bonds have won £300 in 10 months.

PontiacBandit · 26/09/2020 11:59

@PontiacBandit

Income bonds as it gives a guaranteed return.
Ignore my earlier message, they have ditched the interest rate.
fuzzyduck1 · 26/09/2020 13:47

Gold it’s going to go up in value. Buy coins as no vat on them

MillyMoo1113 · 26/09/2020 13:54

You aren't tied in to a time length with premium bonds but be aware their admin and customer service is archaic and it may take 2-4 weeks to actually get your money, based on my recent experience....

OublietteBravo · 26/09/2020 14:00

I think premium bonds are a good bet if you’re going to use the money in the next year or so. You wouldn’t earn much interest in that time elsewhere anyway and you might win. I use them as a repository for the money I expect to pay when I do my tax return. I’ve won £400 in the past year (with around £17k of premium bonds).

mommymooo · 26/09/2020 14:05

Premium Bonds definitely.
My dad brought my son 5k 1k for every birthday and we win all the time and we have them go into more bonds.
So now we have 8.6k
Not bad interest but you cannot guarantee winning we have just been lucky. Xx

Untangled87 · 26/09/2020 18:46

With £12-16K invested, you'd expect to win perhaps four or five £25 prizes in the next 12 months (with average luck and with the new drop in the number of prizes). And remember your bonds must be held for a full calendar month before they're eligible for the prize draw.

So you'll most probably get less than 1% return. But interest rates are so rubbish at the moment that you're not risking much. And there's always the miniscule chance you might win big!

I'm a bit of a gambler so I've put all my £30K savings into premium bonds (I nearly always win £25 a month, which isn't great but is what I'd expected). I'm also about to open up a Natwest digital regular saver account. You can only put in £50 a month but it pays 3% interest.

QuiltingFlower · 07/10/2020 22:46

Plus any winnings from PSBs are Tax free.

However they have to be in for a whole month before being eligible to go in the draw. So get them in before the end of the month!

Good luck

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